Weighted average lease expiry (WALE)

BY MICHAEL SHANG · SIXTEEN YEARS IN COMMERCIAL BANKING · UPDATED 2026-11-06

// THE SHORT ANSWER

Weighted average lease expiry is the average time left on a property's leases, weighted by the rent each tenant pays, or by floor area. A building where 60% of the rent comes from a tenant with five years to run and 40% from one with two years has a WALE of 3.8 years. A property lender compares it with the term of the loan: a WALE shorter than the loan means some of the income must be re-let before the debt is repaid. In the UK it is usually called WAULT, and may be run to the first break date rather than to expiry.

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