Free investor tool
Commercial lease and expiry calculator
Work out the weighted average lease expiry (WALE) of a commercial property, the rent its leases lock in with annual increases, and how much of the income expires soon.
Updated · Free, no sign-up
| Year | Contracted rent | Share of today's rent |
|---|---|---|
| 1 | $120,000 | 100% |
| 2 | $124,200 | 100% |
| 3 | $85,698 | 67% |
| 4 | $88,697 | 67% |
| 5 | $91,802 | 67% |
How it works
Why lease expiry drives value
A commercial property is only as secure as its leases. WALE, the weighted average lease expiry, measures how long the income is contracted for on average, with each lease weighted by its rent. A longer WALE usually means a lower risk of vacancy and a higher price; a short one means the buyer is taking leasing risk and should pay less.
The calculator also adds up the rent the leases lock in, including fixed annual increases, and shows how much of the income expires within two years. Options to renew are not counted, because the tenant chooses whether to take them. Always read the leases themselves: rent reviews, make-good, incentives and outgoings clauses change the picture.
The numbers are one part of the decision
We look at the figures alongside growth drivers, vacancy, supply and how a property fits your borrowing and portfolio plans, then choose the market that suits your strategy, wherever it is in Australia. See how we buy investment property.
FAQ
Common questions
How is WALE calculated?
Multiply each tenant's rent by the years left on their lease, add the results, and divide by the total rent. Two tenants paying $80,000 with five years left and $40,000 with two years left give a WALE of four years: ($400,000 + $80,000) ÷ $120,000.
What is a good WALE?
It depends on the property and price. Many buyers and lenders prefer several years of contracted income, and a lease to a strong tenant with five or more years to run is generally seen as secure. A short WALE is not always bad if the property is easy to re-let, but it should be reflected in the price.
Do options to renew count towards WALE?
Not usually. WALE is measured to each lease's expiry date, because the tenant decides whether to exercise an option. Some reports quote a second figure that includes options; check which one you are reading.
Is this financial advice?
No. It is a general estimate to help you compare options. It does not consider your personal circumstances, and results depend on the figures you enter. Check them with your accountant, mortgage broker or financial adviser before you act.
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