Acquisitions (Tables)

6 Months Ended

Jun. 30, 2011

Acquisitions [Abstract]

Acquired operating properties from unrelated third parties

							Percentage
							Occupied
					Rentable		as of			Purchase
	Property	Date of	Number of		Square		June 30,			Price
Property	Type	Acquisition	Buildings		Feet		2011			(in millions)(1)
250 Brannan Street San Francisco, CA	Office	January 28, 2011		1		90,742		76.7	%	$	33.0
10210, 10220, and 10230 NE Points Drive; 3933 Lake Washington Boulevard NE Kirkland, WA(2)	Office	April 21, 2011		4		279,924		87.3	%		100.1
10770 Wateridge Circle San Diego, CA	Office	May 12, 2011		1		174,310		97.5	%		32.7
601 108th Avenue N.E. Bellevue, WA	Office	June 3, 2011		1		488,470		89.8	%		215.0
4040 Civic Center Drive San Rafael, CA	Office	June 9, 2011		1		126,787		93.1	%		32.2
Total				8		1,160,233				$	413.0

(1)	Excludes acquisition-related costs.
(2)	In connection with this acquisition, we assumed secured debt with an outstanding principal balance of $30.0 million and a premium of $1.0 million as a result of recording this debt at fair value on the acquisition date (see Note 5).

Fair values of assets acquired and liabilities assumed

	601 108th Avenue		All Other
	N.E., Bellevue, WA(1)		Acquisitions(2)		Total
	(in thousands)
Assets
Land(3)	$	—	$	36,740	$	36,740
Buildings and improvements(4)		214,095		143,545		357,640
Undeveloped land		—		2,560		2,560
Deferred leasing costs and acquisition-related intangible assets(5)		13,790		17,500		31,290
Total assets acquired		227,885		200,345		428,230
Liabilities
Deferred revenue and acquisition-related intangible liabilities(6)		12,850		1,390		14,240
Secured debt(7)		—		30,997		30,997
Accounts payable, accrued expenses and other liabilities		2,380		2,059		4,439
Total liabilities assumed		15,230		34,446		49,676
Net assets and liabilities acquired(8)	$	212,655	$	165,899	$	378,554

(1)	The purchase of 601 108th Avenue N.E., Bellevue, WA, represents the largest acquisition and 52.1% of the total aggregate purchase price of the properties acquired during the six months ended June 30, 2011.
(2)	The purchase price of all other acquisitions completed during the six months ended June 30, 2011 were individually less than 5% and in aggregate less than 10% of the Company’s total assets as of December 31, 2010.
(3)	In connection with the acquisition of 601 108th Avenue N.E., Bellevue, WA,, we assumed the lessee obligations under a noncancellable ground lease that is scheduled to expire in November 2093 (see Notes 3 and 11).
(4)	Represents buildings, building improvements, and tenant improvements.
(5)	Represents in-place leases (approximately $18.9 million with a weighted average amortization period of 4.1 years), above-market leases (approximately $6.6 million with a weighted average amortization period of 4.5 years), and unamortized leasing commissions (approximately $5.7 million with a weighted average amortization period of 2.8 years).
(6)	Represents below-market leases (approximately $9.0 million with a weighted average amortization period of 4.3 years) and an above-market ground lease obligation (approximately $5.2 million with a weighted average amortization period of 82.5 years), under which we are the lessee.
(7)	Represents the mortgage loan, which includes an unamortized premium of approximately $1.0 million, assumed in connection with the properties acquired in April 2011 (see Note 5).
(8)	Reflects the purchase price net of assumed secured debt and other lease-related obligations.