Operating Leases

12 Months Ended

Dec. 31, 2015

Leases [Abstract]

Operating Leases

Operating Leases

Piedmont’s real estate assets are leased to tenants under operating leases for which the terms vary, including certain provisions to extend the lease term, options for early terminations subject to specified penalties, and other terms and conditions as negotiated. Piedmont retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant; however, generally they are not significant. Exposure to credit risk is limited to the extent that tenant receivables exceed this amount. Security deposits related to tenant leases are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets.

As of December 31, 2015, slightly under 80% of our ALR (unaudited) was generated from select office sub-markets in the following cities: Atlanta, Boston, Chicago, Dallas, Minneapolis, New York, and Washington, D.C. Furthermore, approximately 8.4% of Piedmont's Annualized Lease Revenue (unaudited) is generated from federal governmental agencies.

The future minimum rental income from Piedmont’s investment in real estate assets under non-cancelable operating leases, excluding unconsolidated joint ventures, as of December 31, 2015, is presented below (in thousands):

Years ending December 31:
2016	$	408,683
2017	407,955
2018	386,815
2019	345,677
2020	305,879
Thereafter	1,445,767
Total	$	3,300,776