Anchor Lease Term (Weighted Average Lease Term)

Weighted average lease term (WALT) is the average remaining duration of a data center operator's customer contracts, weighted by rent or contracted capacity. It is the main measure of how secure future revenue is. Hyperscale leases commonly run 10 to 15 years, while retail colocation contracts run one to five, so wholesale-heavy landlords report WALTs of 7 to 12 years against 2 to 4 for retail-focused ones. Investors and lenders use WALT with tenant credit quality to price debt and to judge how fast a portfolio must re-lease. A long WALT lowers rollover risk but can lock in rents below current market levels, which matters when pricing is rising on tight supply.