Weighted average lease term, commonly abbreviated WALT, measures the average remaining length of a property's leases, weighted by either square footage or rental income rather than treated as a simple average of expiration dates. A single large tenant with eight years left on its lease pulls the WALT figure up more than several small tenants with short remaining terms, since it represents a larger share of the building's occupied space or income.
WALT matters most for single-tenant and multi-tenant net lease properties, where income stability depends heavily on how far out lease rollover risk sits. This is a particularly common consideration in sectors covered in this overview of industrial property types, where long-term logistics and distribution leases are common. A longer WALT generally signals more predictable near-term cash flow, while a shorter one flags upcoming lease expirations that will require re-leasing or renewal activity sooner.
Further reading: An Investor's Guide: Industrial Real Estate Sub-Asset Types
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