The yield at which an asset is valued — net operating income divided by capital value.

  • The yield at which an asset is valued — net operating income divided by capital value.
  • Prime cap rates for Class A office in 2026 range from approximately 3.0% (Tokyo) to 7.5% (Dubai, Mumbai).

Cap rate

Capital markets · Global

Short definition

The yield at which an asset is valued — net operating income divided by capital value.

Full definition

Prime cap rates for Class A office in 2026 range from approximately 3.0% (Tokyo) to 7.5% (Dubai, Mumbai). Cap rate movement is the single largest driver of capital values. Tenants rarely model cap rates directly but should understand that landlord behaviour (concessions, capex, retention) is shaped by them.

Why this matters for Class A leasing

Cap rate is part of the capital markets 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 occupiers can translate quickly.

See also