Property Dispositions, Assets Held for Sale, and Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

Details of such properties sold are presented below (in thousands):

Buildings Sold(1)	Location	Date of Sale	Gain/(Loss) on Sale		Net Sales Proceeds
1055 East Colorado Boulevard	Pasadena, California	April 21, 2016	$	29,462	$	60,076
Fairway Center II	Brea, California	April 28, 2016	$	14,406	$	33,062
1901 Main Street	Irvine, California	May 2, 2016	$	29,964	$	63,149
Sarasota Commerce Center II	Sarasota, Florida	June 16, 2017	$	6,497	$	23,094

Details comprising loss from discontinued operations activity for the three and six months ended ended June 30, 2017 and 2016 are presented below (in thousands):

	Three Months Ended					Six Months Ended
	June 30, 2017		June 30, 2016			June 30, 2017		June 30, 2016
Revenues:
Rental income	$	—	$	—		$	—	$	—
Tenant reimbursements	—		—			—		—
	—		—			—		—
Expenses:
Property operating costs	—		—			—		—
General and administrative	—		1			—		1
	—		1			—		1
Operating income	—		(1		)	—		(1		)
Loss on sale of real estate assets	—		—			—		—
Income from discontinued operations	$	—	$	(1	)	$	—	$	(1	)

Details of Impairment of Long-Lived Assets Held and Used by Asset

Piedmont recorded impairment loss on real estate assets for the three and six months endedJune 30, 2017 and 2016, respectively, as follows (in thousands):

	Three Months Ended				Six Months Ended
	2017		2016		2017		2016
150 West Jefferson(1)	$	—	$	8,259	$	—	$	8,259
9221 Corporate Boulevard (2)	—		2,691		—		2,691
Total impairment loss on real estate assets(3)	$	—	$	10,950	$	—	$	10,950

⁽¹⁾  Piedmont recognized an impairment loss on real estate assets based upon the difference between the carrying value of the asset and the anticipated contract sales price, less estimated selling costs.

⁽²⁾  Piedmont, using a probability-weighted model heavily weighted towards the short-term sale of the 9221 Corporate Boulevard building in Rockville, Maryland, determined that the carrying value would not be recovered from the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. As a result, Piedmont recognized a loss on impairment of approximately $2.7 million during the six months ended June 30, 2016 calculated as the difference between the carrying value of the asset and the anticipated contract sales price, less estimated selling costs.

⁽³⁾  The fair value measurements used in the evaluation of the non-financial assets above are considered to be Level 1 valuations within the fair value hierarchy as defined by GAAP, as there are direct observations and transactions involving the assets by unrelated, third-party purchasers.

Details of assets held for sale as of June 30, 2017 and December 31, 2016 are presented below (in thousands):

	June 30, 2017		December 31, 2016
Real estate assets held for sale, net:
Land	$	52,710	$	52,710
Building and improvements, less accumulated depreciation of $89,187 and $88,319 as of June 30, 2017 and December 31, 2016, respectively	172,350		173,218
Construction in progress	11		11
Total real estate assets held for sale, net	$	225,071	$	225,939
Other assets held for sale, net:
Straight-line rent receivables	$	2,225	$	2,059
Prepaid expenses and other assets	762		454
Deferred lease costs, less accumulated amortization of $2,892 and $2,825 as of June 30, 2017 and December 31, 2016, respectively	7,235		7,302
Total other assets held for sale, net	$	10,222	$	9,815