Weighted Average Lease Term (WALT)
Weighted average lease term (WALT) is a portfolio metric that calculates the average remaining lease duration weighted by each tenant's rental income or occupied square footage, providing a single number that indicates the income stability and re-leasing risk of a property or portfolio.
Understanding Weighted Average Lease Term (WALT)
Weighted average lease term (WALT) is a portfolio metric that calculates the average remaining lease duration weighted by each tenant's rental income or occupied square footage, providing a single number that indicates the income stability and re-leasing risk of a property or portfolio.
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Frequently Asked Questions
What is Weighted Average Lease Term (WALT) in commercial real estate?
Weighted average lease term (WALT) is a portfolio metric that calculates the average remaining lease duration weighted by each tenant's rental income or occupied square footage, providing a single number that indicates the income stability and re-leasing risk of a property or portfolio.
Why is Weighted Average Lease Term (WALT) important for NNN investors?
Weighted Average Lease Term (WALT) is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Weighted Average Lease Term (WALT) helps investors make informed acquisition and management decisions.
How does Weighted Average Lease Term (WALT) affect property value?
Weighted Average Lease Term (WALT) directly influences how commercial properties are valued, financed, and traded. Changes in Weighted Average Lease Term (WALT) can impact cap rates, NOI calculations, and overall investment performance for net lease properties.
Where can I learn more about Weighted Average Lease Term (WALT)?
NNN Triple Net's Learning Center offers practical guides covering Weighted Average Lease Term (WALT) and related CRE concepts. Visit the glossary for related terms and explore our calculators for practical application.