A 255 years B 110 year. WAULT to expiry and WAULT to break. 01 x 5 07 x 6 02 x 3 53 years As can be seen from this example tenants that occupy the larger spaces in a property and sign on very long leases in the building can greatly skew WALE upwards.
Tenant 1 occupies 50 of rentable area and lease expired in 5 years Tenant 2 occupies 20 of rentable area and lease expired in 6 years Tenant 3 occupies 30 of rentable area and lease expired in 2 years.
Both are calculated by adding up all the contracted rental income on the portfolio between now and the time the leases expire or the time until the leases have their first break and dividing it by the contracted annual rent. A 5102 B3673 and C1224. The easiest way to measure the weight of average lease expiry is to calculate your tenancy terms remaining value and divide this figure by the sum of the occupied area annual net rent and the vacant area potential annual net rent. It is one of the many key performance indicators KPIs used in the field.