What is WALE in UAE property?

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WALE, the weighted average lease expiry, is the name used in Australia and New Zealand for the average time left on a property’s leases, in years. Like the UK’s WAULT it is usually weighted by rent. Weighted by let area instead, it shows how long the floor space is committed for, which can give a different answer. Rent weighting follows the money, so a large tenant on a high rent pulls the figure towards its own expiry. Area weighting counts every square foot the same whatever it pays, so a big unit on a low rent counts for more. A wide gap between the two means rent per square foot differs a lot between the long leases and the short ones. Emirates REIT reported a weighted average lease expiry of 8.5 years at 30 September 2016, much of it schools on long leases. The calculator leaves vacant space out of both and shows WALE by area beside the rent-weighted WAULT.

WALE

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