Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Piedmont’s real estate assets are depreciated or amortized using the straight-line method over the following useful lives:



Buildings	40 years
Building improvements	5-25 years
Land improvements	20-25 years
Tenant improvements	Shorter of economic life or lease term
Furniture, fixtures, and equipment	3-5 years
Intangible lease assets	Lease term

Schedule of Finite-Lived Intangible Assets by Major Class

Gross intangible assets and liabilities as of December 31, 2012 and 2011, respectively, are as follows (in thousands):



	December 31, 2012		December 31, 2011
Intangible Lease Assets:
Above-Market In-Place Lease Assets	$	21,468	$	33,687
Absorption Period Costs	$	101,217	$	164,802
Intangible Lease Origination Costs (included in Deferred Lease Costs)	$	116,995	$	146,345
Intangible Lease Liabilities (Below-Market In-Place Leases)	$	81,736	$	113,018

Amortization Of Intangible Lease Costs

For the years ended December 31, 2012, 2011, and 2010, respectively, Piedmont recognized amortization of intangible lease costs as follows (in thousands):



	2012		2011		2010
Amortization expense related to Intangible Lease Origination Costs and Absorption Period Costs	$	36,151	$	48,013	$	34,660
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues	$	5,678	$	7,065	$	5,788

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Net intangible assets and liabilities as of December 31, 2012 will be amortized as follows (in thousands):



	Intangible Lease Assets						Liabilities
	Above-Market In-place Lease Assets		Absorption Period Costs		Intangible Lease Origination Costs		Below-Market In-place Lease Liabilities
For the year ending December 31:
2013	$	1,772	$	8,292	$	9,606	$	6,192
2014	1,581		6,897		8,180		5,280
2015	1,480		6,545		7,543		4,769
2016	1,418		6,152		7,124		4,718
2017	770		5,502		6,820		4,685
Thereafter	324		14,012		19,863		15,161
	$	7,345	$	47,400	$	59,136	$	40,805

Weighted-Average Amortization Period (in years)	5		8		8		8

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

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