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Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
 9 Months Ended
Sep. 30, 2014
Intangible Assets and Liabilities Disclosure [Abstract]  
deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net
    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, 2014 and December 31, 2013:

 
September 30, 2014
 
December 31, 2013
 
(in thousands)
Deferred Leasing Costs and Acquisition-Related Intangible Assets, net:
 
 
 
Deferred leasing costs
$
196,963

 
$
178,720

Accumulated amortization
(71,911
)
 
(63,246
)
Deferred leasing costs, net
125,052

 
115,474

Above-market operating leases
21,926

 
27,635

Accumulated amortization
(14,151
)
 
(14,283
)
Above-market operating leases, net
7,775

 
13,352

In-place leases
94,281

 
100,318

Accumulated amortization
(44,522
)
 
(42,999
)
In-place leases, net
49,759

 
57,319

Below-market ground lease obligation
490

 
490

Accumulated amortization
(19
)
 
(13
)
Below-market ground lease obligation, net
471

 
477

Total deferred leasing costs and acquisition-related intangible assets, net
$
183,057

 
$
186,622

Acquisition-Related Intangible Liabilities, net: (1)
 
 
 
Below-market operating leases
$
69,533

 
$
69,385

Accumulated amortization
(31,288
)
 
(25,706
)
Below-market operating leases, net
38,245

 
43,679

Above-market ground lease obligation
6,320

 
6,320

Accumulated amortization
(298
)
 
(223
)
Above-market ground lease obligation, net
6,022

 
6,097

Total acquisition-related intangible liabilities, net
$
44,267

 
$
49,776

_______________
(1)
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, including amounts attributable to discontinued operations, for the three and nine months ended September 30, 2014 and 2013:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Deferred leasing costs (1)
$
7,132

 
$
6,945

 
$
20,683

 
$
20,882

Above-market operating leases (2)
1,305

 
1,417

 
4,230

 
4,214

In-place leases (1)
5,169

 
7,677

 
17,090

 
22,546

Below-market ground lease obligation (3)
2

 
2

 
6

 
6

Below-market operating leases (4)
(2,940
)
 
(3,355
)
 
(10,054
)
 
(10,229
)
Above-market ground lease obligation (5)
(26
)
 
(25
)
 
(76
)
 
(76
)
Total
$
10,642

 
$
12,661

 
$
31,879

 
$
37,343

_______________
(1)
The amortization of deferred leasing costs related to lease incentives is recorded to rental income and other 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, 2014 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 2014
$
6,936

 
$
993

 
$
4,274

 
$
2

 
$
(2,851
)
 
$
(26
)
2015
24,851

 
2,530

 
13,131

 
8

 
(9,567
)
 
(101
)
2016
22,045

 
1,503

 
10,080

 
8

 
(7,847
)
 
(101
)
2017
19,163

 
1,241

 
8,440

 
8

 
(6,780
)
 
(101
)
2018
15,748

 
831

 
5,532

 
8

 
(5,177
)
 
(101
)
Thereafter
36,309

 
677

 
8,302

 
437

 
(6,023
)
 
(5,592
)
Total
$
125,052

 
$
7,775

 
$
49,759

 
$
471

 
$
(38,245
)
 
$
(6,022
)
_______________
(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.