WALE Calculator
Weighted average lease expiry across a tenancy schedule, weighted by income and by lettable area.
How WALE is calculated
Each tenancy's remaining lease term is weighted by its share of income (or area), then summed. A single anchor tenant on a long lease can carry a whole centre's WALE, which is exactly what buyers and lenders want to see through.
WALE = Σ(weight × years to expiry) ÷ Σ(weight)
Frequently asked questions
What is WALE?
Weighted average lease expiry: the average time until the leases across a property expire, weighted by each tenancy's income or area. It is a headline risk metric in every commercial sales campaign.
WALE by income or by area, which matters?
Income-weighted WALE is the more common headline number because it tracks the cash flow at risk. Area-weighted WALE is useful when rents vary widely or vacancies distort income.
Do options to renew count in WALE?
Convention is no: WALE uses the current lease term to its expiry, ignoring options, because the tenant is not obliged to exercise them. Some campaigns quote both; ask which basis is used.
What is a good WALE?
Context decides. Five-plus years reads as secure for most assets; under two years signals near-term releasing work, which can be a risk or a repositioning opportunity depending on your plans.
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Know the market before you negotiate
Every calculation here ends in a negotiation. MarketBuddy gives you the market side: rents, listings and trends across 100,000+ Australian commercial properties.
The calculators on this site are provided for general information only. Results are estimates, do not account for the terms of any specific lease, loan or property, and do not constitute financial, legal or valuation advice.