---
title: "Internal rate of return (IRR) — Class A Atlas glossary"
description: "Annualised return on a multi-year investment cash flow."
canonical: https://classa.info/glossary/irr
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Annualised return on a multi-year investment cash flow.

## TL;DR

- Annualised return on a multi-year investment cash flow.
- Standard metric for closed-end value-add and opportunistic real-estate funds.

# Internal rate of return (IRR)

*Investment · Global*

## Short definition

Annualised return on a multi-year investment cash flow.

## Full definition

Standard metric for closed-end value-add and opportunistic real-estate funds. [Class A](/glossary/class-a) core funds target 7–9% IRR; core-plus 9–12%; value-add 13–17%; opportunistic 17%+.

## Why this matters for Class A leasing

Internal rate of return (IRR) is part of the investment vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

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Citation: Source: Class A Atlas (https://classa.info/glossary/irr), updated 2026-04-01T00:00:00.000Z.