WAL
See Average Life
Frequently Asked Questions about WAL (Weighted Average Life) in Commercial Real Estate Finance
What does WAL stand for in commercial real estate finance?
WAL stands for Weighted Average Life, also referred to as Average Life. It represents the average time until principal is repaid on a loan or series of cash flows.
Where can I find more detailed information on WAL?
See the glossary entry for Average Life, which explains how WAL is calculated and used in analyzing real estate debt instruments.
How is WAL relevant in commercial mortgage analysis?
WAL is used to evaluate the risk profile and timing of principal repayment for commercial mortgages. It’s especially relevant when analyzing amortization schedules and loan structures.
Is there a tool to calculate WAL for a mortgage loan?
Yes. The Commercial Mortgage Loan Analysis Model (Updated Mar 2024) listed in the Related Content section includes the capability to calculate and analyze WAL.
What is the benefit of understanding WAL for investors?
Understanding WAL helps investors assess loan maturity risk and align investment timelines with expected cash flows, especially when managing portfolios with structured debt.
How can I access the full CRE glossary with WAL and related terms?
Click the link that says “Click here to get this CRE Glossary in an eBook (PDF) format.”
Click here to get this CRE Glossary in an eBook (PDF) format.