Best Math Formula website. Search anything about Math Formula in this website.
how to calculate weighted average lease expiry. NB If you multiply the normal average R65 sqm by the total number of square meters 10000 sqm you will get a wrong total rental R650000. Simply put if a building is leased to a single tenant and the lease agreement expires in 10 years then the weighted average lease expiry WALE is 10 years.
All In One Walkthrough 8 Tenancy Analysis Adventures In Cre from www.adventuresincre.com
Simply put if a building is leased to a single tenant and the lease agreement expires in 10 years then the weighted average lease expiry WALE is 10 years. Youll need to start by assembling a list of the numbers for which youd like to find the weighted. 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.
There are two commonly used forms.
Explains what a WALT is Weighted Average Lease Term or WALE Weighted Average Lease Expiry or WAULT Weighted Average Unexpired Lease Term. WAULT to expiry and WAULT to break. In the above we have weighted the lease expiries by space. For multi-tenanted buildings the average lease term remaining of all leases is calculated to estimate the WALE.
