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Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net (Tables)
9 Months Ended
Sep. 30, 2011
Goodwill and Intangible Assets Disclosure [Abstract] 
Summary of identified deferred leasing costs and acquisition-related intangible assets
The following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market leases, and in-place leases) and intangible liabilities (acquired value of below-market leases and above-market ground lease) as of September 30, 2011 and December 31, 2010:
 
 
September 30, 2011
 
December 31, 2010
 
(in thousands)
Deferred Leasing Costs and Acquisition-related Intangible Assets, net(1):
 
 
 
Deferred leasing costs
$
136,374

 
$
128,980

Accumulated amortization
(48,290
)
 
(45,869
)
Deferred leasing costs, net
88,084

 
83,111

Above-market leases
28,143

 
21,321

Accumulated amortization
(6,250
)
 
(2,163
)
Above-market leases, net
21,893

 
19,158

In-place leases
57,195

 
36,964

Accumulated amortization
(11,415
)
 
(8,167
)
In-place leases, net
45,780

 
28,797

Total deferred leasing costs and acquisition-related intangible assets, net
$
155,757

 
$
131,066

Acquisition-related Intangible Liabilities, net(1)(2):
 
 
 
Below-market leases
$
35,852

 
$
21,938

Accumulated amortization
(3,844
)
 
(5,094
)
Below-market leases, net
32,008

 
16,844

Above-market ground lease obligation
5,200

 
—

Accumulated amortization
(21
)
 
—

Above-market ground lease obligation, net
5,179

 
—

Total acquisition-related intangible liabilities, net
$
37,187

 
$
16,844

________________________
 
(1)
Balances and accumulated amortization amounts at September 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
The following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles for the three and nine months ended September 30, 2011 and 2010:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2011
 
2010
 
2011
 
2010
 
 
(in thousands)
 
(in thousands)
 
Deferred leasing costs(1)
$
4,317

 
$
3,886

 
$
12,053

 
$
9,559

 
Net above-market leases(2)
121

 
664

 
1,519

 
696

 
In-place leases(1)
3,379

 
1,220

 
8,238

 
1,505

 
Above-market ground lease obligation(3)
16

 
—

 
21

 
—

 
Total
$
7,833

 
$
5,770

 
$
21,831

 
$
11,760

 
_________________________
(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
The following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of September 30, 2011 for future periods:
Year Ending
Deferred Leasing Costs
 
Net Above-/(Below)-Market Leases(1)
 
In-Place Leases
 
Above-Market Ground Lease Obligation
 
(in thousands)
Remaining 2011
$
4,748

 
$
(78
)
 
$
3,643

 
$
16

2012
17,689

 
(1,534
)
 
12,863

 
63

2013
15,823

 
(1,690
)
 
10,578

 
63

2014
13,796

 
(1,339
)
 
7,830

 
63

2015
10,387

 
(790
)
 
4,366

 
63

Thereafter
25,641

 
(4,684
)
 
6,500

 
4,911

Total
$
88,084

 
$
(10,115
)
 
$
45,780

 
$
5,179

_______________________
(1)
Represents estimated annual net amortization related to above-/(below)-market leases. Amounts shown represent net below-market leases which will be recorded as an increase to rental income in the consolidated statements of operations.