New Launch - India Real Estate Report 2026.

What is WALT?

WALT (Weighted Average Lease Term) is a key real estate metric used to measure the average time remaining on all active leases in a property or investment portfolio, weighted by rental income. It helps investors and property managers understand the stability and risk level of rental income from commercial real estate assets.

How WALT Works in Real Estate

WALT is calculated by:

  • Taking each tenant’s remaining lease term
  • Weighting it based on the rental income they contribute
  • Calculating an overall average lease duration

This gives a clearer picture than a simple average because larger leases have more impact.

Key Features of WALT

  • Income-weighted measure: Higher-paying tenants have more influence
  • Lease stability indicator: Shows how secure rental income is
  • Portfolio-level metric: Used across multiple properties or assets
  • Risk assessment tool: Helps evaluate tenant rollover risk

WALT is a vital metric in commercial real estate that reflects lease stability and income predictability. It helps investors, developers, and fund managers assess risk and make informed investment decisions.

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