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Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
 3 Months Ended
Mar. 31, 2013
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 March 31, 2013 and December 31, 2012:
 
 
March 31, 2013
 
December 31, 2012
 
(in thousands)
Deferred Leasing Costs and Acquisition-related Intangible Assets, net(1):
 
 
 
Deferred leasing costs
$
171,107

 
$
168,087

Accumulated amortization
(62,265
)
 
(61,443
)
Deferred leasing costs, net
108,842

 
106,644

Above-market operating leases
27,627

 
27,977

Accumulated amortization
(13,010
)
 
(12,180
)
Above-market operating leases, net
14,617

 
15,797

In-place leases
103,778

 
101,061

Accumulated amortization
(31,195
)
 
(34,019
)
In-place leases, net
72,583

 
67,042

Below-market ground lease obligation
690

 
690

Accumulated amortization
(207
)
 
(205
)
Below-market ground lease obligation, net
483

 
485

Total deferred leasing costs and acquisition-related intangible assets, net
$
196,525

 
$
189,968

Acquisition-related Intangible Liabilities, net(1)(2):
 
 
 
Below-market operating leases
$
67,705

 
$
70,486

Accumulated amortization
(16,690
)
 
(17,555
)
Below-market operating leases, net
51,015

 
52,931

Above-market ground lease obligation
6,320

 
6,320

Accumulated amortization
(147
)
 
(122
)
Above-market ground lease obligation, net
6,173

 
6,198

Total acquisition-related intangible liabilities, net
$
57,188

 
$
59,129

________________________
(1)
Balances and accumulated amortization amounts at March 31, 2013 reflect the write-off of the following fully amortized amounts at January 1, 2013: deferred leasing costs (approximately $7.0 million), above-market leases (approximately $0.6 million), in-place leases (approximately $10.3 million), and below-market leases (approximately $4.4 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 months ended March 31, 2013 and 2012:
 
Three Months Ended March 31,
 
2013
 
2012
 
(in thousands)
Deferred leasing costs (1)
$
7,844

 
$
4,498

Above-market operating leases (2)
1,438

 
1,371

In-place leases (1)
7,458

 
3,781

Below-market ground lease obligation (3)
2

 
50

Below-market operating leases (4)
(3,485
)
 
(1,896
)
Above-market ground lease obligation (5)
(25
)
 
(16
)
Total
$
13,232

 
$
7,788

_________________________
(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 March 31, 2013 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 2013
$
18,417

 
$
3,939

 
$
20,874

 
$
6

 
$
(9,847
)
 
$
(76
)
2014
21,530

 
4,389

 
18,012

 
8

 
(11,512
)
 
(101
)
2015
17,558

 
2,586

 
11,729

 
8

 
(8,998
)
 
(101
)
2016
14,877

 
1,559

 
8,613

 
8

 
(6,814
)
 
(101
)
2017
12,311

 
1,225

 
6,818

 
8

 
(5,747
)
 
(101
)
Thereafter
24,149

 
919

 
6,537

 
445

 
(8,097
)
 
(5,693
)
Total
$
108,842

 
$
14,617

 
$
72,583

 
$
483

 
$
(51,015
)
 
$
(6,173
)
_______________________
(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.