---
title: "Preferred equity — Class A Atlas glossary"
description: "Equity tranche paid before common equity, after debt."
canonical: https://classa.info/glossary/preferred-equity
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Equity tranche paid before common equity, after debt.

## TL;DR

- Equity tranche paid before common equity, after debt.
- Common in value-add Class A capital stacks.

# Preferred equity

*Finance · Global*

## Short definition

Equity tranche paid before common equity, after debt.

## Full definition

Common in value-add [Class A](/glossary/class-a) capital stacks. Typical 10–14% pref; sized to fill the gap between senior debt and common equity.

## Why this matters for Class A leasing

Preferred equity is part of the finance 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.

---

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