---
title: "Yield on cost — Class A Atlas glossary"
description: "Annual NOI divided by total acquisition + capex cost."
canonical: https://classa.info/glossary/yield-on-cost
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Annual NOI divided by total acquisition + capex cost.

## TL;DR

- Annual NOI divided by total acquisition + capex cost.
- Used to assess development and reposition projects.

# Yield on cost

*Investment · Global*

## Short definition

Annual NOI divided by total acquisition + capex cost.

## Full definition

Used to assess development and reposition projects. [Class A](/glossary/class-a) trophy targets typically 5.5–7.0% YoC at year-3 stabilisation in the US; 4.5–6.0% in EMEA gateway cities.

## Why this matters for Class A leasing

Yield on cost 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/yield-on-cost), updated 2026-04-01T00:00:00.000Z.