---
title: "Preferred return — Class A Atlas glossary"
description: "Hurdle return paid to LPs before promote kicks in."
canonical: https://classa.info/glossary/preferred-return
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Hurdle return paid to LPs before promote kicks in.

## TL;DR

- Hurdle return paid to LPs before promote kicks in.
- Typical Class A core JV: 8% pref.

# Preferred return

*Investment · Global*

## Short definition

Hurdle return paid to LPs before promote kicks in.

## Full definition

Typical [Class A](/glossary/class-a) core JV: 8% pref. Value-add: 9–10% pref. Until pref is fully paid, the GP takes only management fees, no promote.

## Why this matters for Class A leasing

Preferred return 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/preferred-return), updated 2026-04-01T00:00:00.000Z.