As of Q1 2017, the expiration profile of U.S. leases tracked by MSCI was fairly back loaded with the majority set to expire in 2021 or later. With signs of an improving economy, there is positive reversionary potential across most markets. Washington DC and Atlanta are the notable outliers with low gain to lease potential. Overall, the gain to leases stands at 14.5%, up from 14.1% in Q1 2016. The weighted remaining lease term has increased to 5.2 years, up from 5.1 at the same time a year ago. The analysis in the following pages provides additional and specific focus on the industrial sector using the four primary dimensions of risk in IRIS (MSCI's property income risk and performance service): concentration, lease length, market conditions, and tenant credit.
Source : MSCI