---
title: "Rental growth assumption — Class A Atlas glossary"
description: "Projected annual rental-rate change in a DCF."
canonical: https://classa.info/glossary/rental-growth-assumption
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Projected annual rental-rate change in a DCF.

## TL;DR

- Projected annual rental-rate change in a DCF.
- Critical input in any 5–10 year DCF.

# Rental growth assumption

*Investment · Global*

## Short definition

Projected annual rental-rate change in a DCF.

## Full definition

Critical input in any 5–10 year DCF. Conservative gateway-city assumptions: 1–2% real, 3–4% nominal. Trophy assets in supply-constrained markets: 4–5% nominal.

## Why this matters for Class A leasing

Rental growth assumption is part of the investment vocabulary that institutional [Class A](/glossary/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/rental-growth-assumption), updated 2026-04-01T00:00:00.000Z.