Portfolio WALE Calculator

WALE measures lease tenor. This calculator computes.

Tenant 1 annual rent

Tenant 1 years remaining

Tenant 2 annual rent

Tenant 2 years remaining

Tenant 3 annual rent

Tenant 3 years remaining

WALE (years)

7.41

Total rent

$910,000

Largest tenant weight %

49.45%

How the math works

WALE = sum(rent × years) / total rent. Measures weighted lease duration.

Three tenants at $450k/$280k/$180k with 8/3.5/12 years: WALE ~7.2 years. Institutional-grade. Key risk: Tenant 2 rolls in 3.5 years — 30% of rent at risk. Plan renewal/backfill strategy well ahead.

How to Use

Enter tenant 1 rent and years.
Enter tenant 2 rent and years.
Enter tenant 3 rent and years.
Read WALE.

Frequently Asked Questions

Why WALE?

Measures cash flow durability. Higher WALE = longer locked-in rent. Institutional investors prize WALE > 5 years (office), 7+ (industrial). Multifamily: WALE low by nature (1-year leases). Retail: mixed based on anchor mix.

Calculation?

Weighted by rent (not SF): tenant A pays 40% of portfolio rent × 8 years remaining = 3.2 weighted years. Sum across tenants. Rent-weighted vs area-weighted (SF) WALE — rent-weighted more accurate for valuation.

Target WALE?

Stabilized Class A office: 7-10 years. Industrial single-tenant NNN: 10-15. Multi-tenant retail: 4-7. Multifamily: 0.5-1.5 (month-to-month post-lease). WALE below peer benchmark signals turnover risk in valuation discount.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.