In the above we have weighted the lease expiries by space. Tenant 1 occupies 50 of rentable area and lease expired in 5 years Tenant 2 occupies 20 of rentable area and lease expired in 6 years Tenant 3 occupies 30 of rentable area and lease expired in 2 years. Occupies 10 of rentable area lease expires in 5 years Tenant 2.
Please see the example below.
05 x 5 02 x 6 03 x 2 43 years. Subscribe to Market Updates. Weighted Average Remaining Term WART is a calculation used to compare the time to maturity of asset-backed securities most commonly mortgages. The easiest way to measure the weight of average lease expiry is to calculate your tenancy terms remaining value and divide this figure by the sum of the occupied area annual net rent and the vacant area potential annual net rent.