IRR
Internal Rate of Return (IRR) is a financial metric used in commercial real estate to measure the profitability of an investment over time. It represents the discount rate at which the net present value (NPV) of all cash flows from the investment—both incoming and outgoing—equals zero. Essentially, IRR reflects the annualized rate of return expected from the project, accounting for the timing and magnitude of cash flows.
Related Terms
Additional Reading
- Decoding Real Estate Return Metrics
- View the IRR performance of deals that have realized on our Marketplace
