Deferred Leasing Costs and Acquisition-related Intangibles Assets and Liabilities, net (Tables)

6 Months Ended

Jun. 30, 2011

Deferred Leasing Costs and Acquisition-related Intangibles Assets and Liabilities, net [Abstract]

Summary of identified deferred leasing costs and acquisition-related intangible assets


	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.

Amortization for the period related to deferred leasing costs and acquisition-related intangibles


	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.

Estimated annual amortization related to deferred leasing costs and acquisition-related intangibles


								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.

- Definition

Tabular disclosure of amortizable intangibles assets, in total and by major class, including the gross carrying amount and accumulated amortization. A major class is composed of intangible assets that can be grouped together because they are similar, either by their nature or by their use in the operations of a company.

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