What are the six key revenue metrics for office real estate?

The six key revenue metrics for office real estate are crucial for assessing the financial performance and potential profitability of properties. The correct choice includes metrics such as Rent per square meter, Occupancy Rate, and WAULT (Weighted Average Unexpired Lease Term), which provide valuable insights into how well an office space is generating income and how effectively it is being utilized.

Rent per m² is essential for understanding rental income in relation to space, allowing comparisons across different properties and helping to gauge market competitiveness. The Occupancy Rate indicates the percentage of rented space versus total available space, directly reflecting the property’s ability to attract tenants. WAULT serves as a metric for lease stability and the duration of cash flows, as it takes into account the length of current leases weighted by the rental value, providing insight into how long the income stream from tenants is secured.

These metrics collectively offer a comprehensive view of the property's revenue capabilities and risks, allowing investors and managers to make informed decisions regarding asset management and investment strategies.

Comparatively, the other options contain a mix of relevant metrics but do not specifically align with the key revenue indicators that typically define the performance of office real estate. For example, while Cash Flow and IRR provide valuable financial insights, they are not specific to revenue