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Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
 9 Months Ended
Sep. 30, 2012
Intangible Assets and Liabilities Disclosure [Abstract]  
Intangible Assets and Liabilities Disclosure [Text Block]
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
The following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market operating leases, in-place leases and below-market ground lease obligation) and intangible liabilities (acquired value of below-market operating leases and above-market ground lease obligation) as of September 30, 2012 and December 31, 2011:
 
 
September 30, 2012
 
December 31, 2011
 
(in thousands)
Deferred Leasing Costs and Acquisition-related Intangible Assets, net(1):
 
 
 
Deferred leasing costs
$
153,288

 
$
142,652

Accumulated amortization
(55,641
)
 
(52,974
)
Deferred leasing costs, net
97,647

 
89,678

Above-market operating leases
27,927

 
28,143

Accumulated amortization
(10,691
)
 
(8,101
)
Above-market operating leases, net
17,236

 
20,042

In-place leases
98,788

 
61,355

Accumulated amortization
(26,901
)
 
(15,753
)
In-place leases, net
71,887

 
45,602

Below-market ground lease obligation
690

 
200

Accumulated amortization
(153
)
 
—

Below-market ground lease obligation, net
537

 
200

Total deferred leasing costs and acquisition-related intangible assets, net
$
187,307

 
$
155,522

Acquisition-related Intangible Liabilities, net(1)(2):
 
 
 
Below-market operating leases
$
70,036

 
$
37,582

Accumulated amortization
(13,984
)
 
(6,158
)
Below-market operating leases, net
56,052

 
31,424

Above-market ground lease obligation
6,320

 
5,200

Accumulated amortization
(97
)
 
(37
)
Above-market ground lease obligation, net
6,223

 
5,163

Total acquisition-related intangible liabilities, net
$
62,275

 
$
36,587

________________________
(1)
Balances and accumulated amortization amounts at September 30, 2012 reflect the write-off of the following fully amortized amounts at January 1, 2012: deferred leasing costs (approximately $9.5 million), above-market leases (approximately $1.6 million), in-place leases (approximately $3.7 million), and below-market leases (approximately $1.0 million).
(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 nine months ended September 30, 2012 and 2011:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
(in thousands)
 
(in thousands)
Deferred leasing costs(1)
$
5,238

 
$
4,317

 
$
14,126

 
$
12,053

Above-market operating leases(2)
1,459

 
1,502

 
4,205

 
4,095

In-place leases(1)
6,479

 
3,379

 
14,858

 
8,238

Below-market ground lease obligation(3)
52

 
—

 
153

 
—

Below-market operating leases(4)
(3,487
)
 
(1,381
)
 
(8,821
)
 
(2,576
)
Above-market ground lease obligation(5)
(25
)
 
16

 
(60
)
 
21

Total
$
9,716

 
$
7,833

 
$
24,461

 
$
21,831

_________________________
(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 above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented.
(3)
The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented.
(4)
The amortization of below−market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented.
(5)
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 September 30, 2012 for future periods:
Year
Deferred Leasing Costs
 
Above-Market Operating Leases(1)
 
In-Place Leases
 
Below-Market Ground Lease Obligation(2)
 

Below-Market Operating Leases(3)
 
Above-Market Ground Lease Obligation(4)
 
(in thousands)
Remaining 2012
$
5,599

 
$
1,485

 
$
6,950

 
$
52

 
$
(3,497
)
 
$
(25
)
2013
20,523

 
5,293

 
22,881

 
8

 
(12,946
)
 
(101
)
2014
18,131

 
4,313

 
15,219

 
8

 
(11,202
)
 
(101
)
2015
14,389

 
2,534

 
9,614

 
8

 
(8,811
)
 
(101
)
2016
11,821

 
1,506

 
6,505

 
8

 
(6,641
)
 
(101
)
Thereafter
27,184

 
2,105

 
10,718

 
453

 
(12,955
)
 
(5,794
)
Total
$
97,647

 
$
17,236

 
$
71,887

 
$
537

 
$
(56,052
)
 
$
(6,223
)
_______________________
(1)
Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations.
(2)
Represents estimated annual amortization related to below−market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations.
(3)
Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations.
(4)
Represents estimated annual amortization related to above−market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations.