Which metric reflects the average lease duration remaining for all tenants?

The correct answer is WAULT, which stands for Weighted Average Unexpired Lease Term. This metric specifically measures the average remaining duration of leases for all tenants in a property, weighted by the rental income of each lease. By taking into account the remaining time on each lease and the proportion of income each tenant represents, WAULT provides a comprehensive overview of how long tenants are likely to stay, which is crucial for assessing the stability and cash flow of an investment property.

A high WAULT indicates that tenants are committed to their leases for a longer time period, thus providing a more stable income stream for the property owner. Conversely, a low WAULT may suggest a higher risk of turnover, prompting the owner to potentially reconsider their leasing strategies or renovations.

Occupancy Rate measures the percentage of rented units versus total units available, reflecting current income potential but not lease duration. The Tenant Retention Rate focuses on how well a property is maintaining its tenants year over year, which is important for long-term performance but does not directly indicate the average lease term remaining. Operating Expenses per m² provides insights into the cost of maintaining a property, but it does not offer any information regarding tenant leases or duration.