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Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
 6 Months Ended
Jun. 30, 2011
Deferred Leasing Costs and Acquisition-related Intangibles Assets and Liabilities, net [Abstract]  
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
3.   Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
 
The following table summarizes our identified deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market leases, and in-place leases) and intangible liabilities (acquired value of below-market leases and above-market ground lease obligation) as of June 30, 2011 and December 31, 2010:
 
                 
    June 30,
 		    December 31,
 		 
    2011     2010  
    (in thousands)  
 
Deferred Leasing Costs and Acquisition-related Intangible Assets, net(1):
               
Deferred leasing costs
  $ 131,098     $ 128,980  
Accumulated amortization
    (43,921 )     (45,869 )
                 
Deferred leasing costs, net
    87,177       83,111  
                 
Above-market leases
    27,922       21,321  
Accumulated amortization
    (4,747 )     (2,163 )
                 
Above-market leases, net
    23,175       19,158  
                 
In-place leases
    50,915       36,964  
Accumulated amortization
    (8,036 )     (8,167 )
                 
In-place leases, net
    42,879       28,797  
                 
                 
Total deferred leasing costs and acquisition-related intangible assets, net
  $ 153,231     $ 131,066  
                 
Acquisition-related Intangible Liabilities, net(1)(2):
               
                 
Below-market leases
  $ 27,152     $ 21,938  
Accumulated amortization
    (2,462 )     (5,094 )
                 
Below-market leases, net
    24,690       16,844  
                 
Above-market ground lease obligation
    5,200       —  
Accumulated amortization
    (5 )     —  
                 
Above-market ground lease obligation, net
    5,195       —  
                 
                 
Total acquisition-related intangible liabilities, net
  $ 29,885     $ 16,844  
                 
 
 
(1) Balances and accumulated amortization amounts at June 30, 2011 reflect the write-off of the following fully amortized amounts at January 1, 2011: deferred leasing costs (approximately $10.4 million), in-place leases (approximately $5.0 million), and below-market leases (approximately $3.8 million). Our accounting policy is to write-off the asset and corresponding accumulated amortization for fully amortized balances on January 1st of each fiscal year.
 
(2) Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets.
 
 
The following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles for the three and six months ended June 30, 2011 and 2010:
 
                                 
    Three Months Ended
 		       
    June 30,     Six Months Ended June 30,  
    2011     2010     2011     2010  
    (in thousands)  
 
Deferred leasing costs(1)
  $ 3,970     $ 2,968     $ 7,738     $ 5,673  
Net above-market leases(2)
    745       60       1,398       32  
In-place leases(1)
    2,686       267       4,859       285  
Above-market ground lease obligation(3)
    5       —       5       —  
                                 
Total
  $ 7,406     $ 3,295     $ 14,000     $ 5,990  
                                 
 
 
(1) The amortization of deferred leasing costs and in-place leases is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented.
 
(2) The amortization of net above-market leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented.
 
(3) The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented.
 
The following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of June 30, 2011 for future periods:
 
                                 
                      Above-Market
 		 
    Deferred Leasing
 		    Net Above-/(Below)-
 		    In-Place
 		    Ground Lease
 		 
Year Ending   Costs     Market Leases(1)     Leases     Obligation  
    (in thousands)  
 
Remaining 2011
  $ 8,946     $ 706     $ 6,165     $ 32  
2012
    16,558       1,303       10,766       63  
2013
    14,751       1,062       8,682       63  
2014
    13,042       324       6,922       63  
2015
    9,859       (220 )     3,991       63  
Thereafter
    24,021       (4,690 )     6,353       4,911  
                                 
Total
  $ 87,177     $ (1,515 )   $ 42,879     $ 5,195  
                                 
 
 
(1) Represents estimated annual net amortization related to above-/(below)-market leases. Amounts shown for 2011-2014 represent net above-market leases which will be recorded as a decrease to rental income in the consolidated statement of operations, and amounts shown for the periods 2015 and thereafter represent net below-market leases which will be recorded as an increase to rental income in the consolidated statement of operations.