"WALE" stands for Weighted Average Lease Expiry. WALE is a commonly used metric in the commercial real estate industry, particularly when assessing the stability and income potential of a property investment.
WALE is calculated by taking the average lease expiry date of all leases within a property, weighted by the rentable area of each lease. It provides an indication of the remaining lease term for the property as a whole, taking into account the size of each lease.
WALE is useful for property investors and analysts as it provides an understanding of the income stability and potential risks associated with a property. A longer WALE suggests a more stable income stream, while a shorter WALE may indicate higher turnover and potential income volatility.