10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015.

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 1-31824

FIRST POTOMAC REALTY TRUST

(Exact name of registrant as specified in its charter)

MARYLAND	37-1470730
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

7600 Wisconsin Avenue, 11th Floor, Bethesda, MD 20814

(Address of principal executive offices) (Zip Code)

(301) 986-9200

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES x    NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filter,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	x	Accelerated Filer	¨
Non-Accelerated Filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO   x

As of July 29, 2015, there were 58,758,040 common shares, par value $0.001 per share, outstanding.

FIRST POTOMAC REALTY TRUST

FORM 10-Q

INDEX

		Page
Part I:	Financial Information
Item 1.	Condensed Consolidated Financial Statements
	Consolidated balance sheets as of June 30, 2015 (unaudited) and December 31, 2014	4
	Consolidated statements of operations (unaudited) for the three and six months ended June 30, 2015 and 2014	5
	Consolidated statements of comprehensive income (unaudited) for the three and six months ended June 30, 2015 and 2014	6
	Consolidated statements of cash flows (unaudited) for the six months ended June 30, 2015 and 2014	7
	Notes to condensed consolidated financial statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	57
Item 4.	Controls and Procedures	58
Part II:	Other Information
Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3.	Defaults Upon Senior Securities	59
Item 4.	Mine Safety Disclosures	59
Item 5.	Other Information	60
Item 6.	Exhibits	61
	Signatures	62

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SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain.

Certain factors that could cause actual results, performance or achievements to differ materially from the Company’s expectations include, among others, the following:

• changes in general or regional economic conditions;

• the Company’s ability to timely lease or re-lease space at current or anticipated rents;

• changes in interest rates;

• changes in operating costs;

• the Company’s ability to complete acquisitions and, if applicable, dispositions on acceptable terms;

• the Company’s ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other required payment dates;

• the Company’s ability to maintain financial covenant compliance under its debt agreements; the Company’s ability to maintain effective internal controls over financial reporting and disclosure controls and procedures;

• any impact of the informal inquiry initiated by the U.S. Securities and Exchange Commission (the “SEC”);

• the Company’s ability to obtain debt and/or financing on attractive terms, or at all; and

• other risks detailed under “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2014, as such factors may be updated from time to time in the Company’s filings with the SEC, which are accessible on the SEC’s website atwww.sec.gov.

The risks set forth above are not exhaustive. Other sections of this report may include additional factors that could adversely affect the Company’s business and financial performance. Moreover, the Company operates in a very competitive and rapidly changing environment. Many of these factors are beyond the Company’s ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. We do not intend to, and expressly disclaim any duty to, update or revise the forward-looking statements in this discussion to reflect changes in underlying assumptions or factors, new information, future events, or otherwise, after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should not rely upon these forward-looking statements after the date of this report and should keep in mind that any forward-looking statement made in this discussion, or elsewhere, might not occur.

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FIRST POTOMAC REALTY TRUST

Consolidated Balance Sheets

(Amounts in thousands, except per share amounts)

	June 30, 2015			December 31, 2014
	(unaudited)
Assets:
Rental property, net	$	1,286,301		$	1,288,873
Assets held-for-sale	11,677			59,717
Cash and cash equivalents	12,735			13,323
Escrows and reserves	2,529			2,986
Accounts and other receivables, net of allowance for doubtful accounts of $1,350 and $1,207, respectively	11,656			10,587
Accrued straight-line rents, net of allowance for doubtful accounts of $97 and $104, respectively	38,986			34,226
Notes receivable, net	34,000			63,679
Investment in affiliates	48,059			47,482
Deferred costs, net	45,403			43,991
Prepaid expenses and other assets	6,117			7,712
Intangible assets, net	40,019			45,884
Total assets	$	1,537,482		$	1,618,460
Liabilities:
Mortgage and Construction loans	$	294,499		$	305,139
Unsecured term loan	300,000			300,000
Unsecured revolving credit facility	152,000			205,000
Liabilities held-for-sale	8,307			4,562
Accounts payable and other liabilities	44,178			41,113
Accrued interest	1,657			1,720
Rents received in advance	6,942			7,971
Tenant security deposits	5,904			5,891
Deferred market rent, net	2,510			2,827
Total liabilities	815,997			874,223
Noncontrolling interests in the Operating Partnership	30,389			33,332
Equity:
Preferred Shares, $0.001 par value, 50,000 shares authorized;
Series A Preferred Shares, $25 per share liquidation preference, 6,400 shares issued and outstanding	160,000			160,000
Common shares, $0.001 par value, 150,000 shares authorized; 58,758 and 58,815 shares issued and outstanding, respectively	59			59
Additional paid-in capital	916,385			913,282
Noncontrolling interests in a consolidated partnership	800			898
Accumulated other comprehensive loss	(3,582		)	(3,268		)
Dividends in excess of accumulated earnings	(382,566		)	(360,066		)
Total equity	691,096			710,905
Total liabilities, noncontrolling interests and equity	$	1,537,482		$	1,618,460

See accompanying notes to condensed consolidated financial statements.

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FIRST POTOMAC REALTY TRUST

Consolidated Statements of Operations

(unaudited)

(Amounts in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues:
Rental	$	34,844		$	31,619		$	69,224		$	62,052
Tenant reimbursements and other	8,195			7,688			17,664			16,619
Total revenues	43,039			39,307			86,888			78,671
Operating expenses:
Property operating	10,661			10,224			23,775			22,261
Real estate taxes and insurance	4,811			4,241			9,854			8,373
General and administrative	4,979			5,218			10,505			10,414
Acquisition costs	—			1,111			—			1,179
Depreciation and amortization	16,817			14,829			33,151			29,139
Impairment of rental property	—			3,956			—			3,956
Total operating expenses	37,268			39,579			77,285			75,322
Operating income (loss)	5,771			(272		)	9,603			3,349
Other expenses (income)
Interest expense	6,725			6,031			13,633			11,768
Interest and other income	(974		)	(1,670		)	(4,802		)	(3,428		)
Equity in (earnings) losses of affiliates	(456		)	(199		)	(803		)	28
Gain on sale of rental property	—			(21,230		)	—			(21,230		)
Total other expenses (income)	5,295			(17,068		)	8,028			(12,862		)
Income from continuing operations	476			16,796			1,575			16,211
Discontinued operations:
Income (loss) from operations	—			254			(975		)	(657		)
Loss on debt extinguishment	—			—			(489		)	—
Gain on sale of rental property	—			1,284			857			1,338
Income (loss) from discontinued operations	—			1,538			(607		)	681
Net income	476			18,334			968			16,892
Less: Net loss (income) attributable to noncontrolling interests	114			(652		)	227			(458		)
Net income attributable to First Potomac Realty Trust	590			17,682			1,195			16,434
Less: Dividends on preferred shares	(3,100		)	(3,100		)	(6,200		)	(6,200		)
Net (loss) income attributable to common shareholders	$	(2,510	)	$	14,582		$	(5,005	)	$	10,234
Basic and diluted earnings per common share:
(Loss) income from continuing operations	$	(0.04	)	$	0.22		$	(0.08	)	$	0.16
Income (loss) from discontinued operations	—			0.03			(0.01		)	0.01
Net (loss) income	$	(0.04	)	$	0.25		$	(0.09	)	$	0.17
Weighted average common shares outstanding:
Basic	58,280			58,146			58,241			58,122
Diluted	58,280			58,220			58,241			58,190

See accompanying notes to condensed consolidated financial statements.

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FIRST POTOMAC REALTY TRUST

Consolidated Statements of Comprehensive Income

(unaudited)

(Amounts in thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2015		2014			2015			2014
Net income	$	476	$	18,334		$	968		$	16,892
Unrealized gain on derivative instruments	748		99			397			416
Unrealized loss on derivative instruments	—		(1,079		)	(725		)	(1,217		)
Total comprehensive income	1,224		17,354			640			16,091
Net loss (income) attributable to noncontrolling interests	114		(652		)	227			(458		)
Net gain (loss) from derivative instruments attributable to noncontrolling interests	32		42			(14		)	34
Comprehensive income attributable to First Potomac Realty Trust	$	1,370	$	16,744		$	853		$	15,667

See accompanying notes to condensed consolidated financial statements.

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FIRST POTOMAC REALTY TRUST Consolidated Statements of Cash Flows (Unaudited, amounts in thousands)
	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities:
Net income	$	968		$	16,892
Adjustments to reconcile net income to net cash provided by operating activities:
Discontinued operations:
Gain on sale of rental property	(857		)	(1,338		)
Depreciation and amortization	1,222			2,070
Depreciation and amortization	33,693			29,676
Stock based compensation	1,531			1,689
Bad debt expense	394			481
Amortization of deferred market rent	77			(55		)
Amortization of financing costs and discounts	665			674
Equity in (earnings) losses of affiliates	(803		)	28
Distributions from investments in affiliates	632			435
Gain on sale of rental property	—			(21,230		)
Impairment of rental property	—			3,956
Changes in assets and liabilities:
Escrows and reserves	281			2,925
Accounts and other receivables	(1,555		)	1,904
Accrued straight-line rents	(4,583		)	(2,918		)
Prepaid expenses and other assets	1,051			1,802
Tenant security deposits	(509		)	240
Accounts payable and accrued expenses	2,123			(431		)
Accrued interest	(63		)	38
Rents received in advance	(1,330		)	(436		)
Deferred costs	(4,833		)	(5,546		)
Total adjustments	27,136			13,964
Net cash provided by operating activities	28,104			30,856
Cash flows from investing activities:
Investment in note receivable	—			(9,000		)
Proceeds from sale of rental property	56,943			85,284
Principal payments from note receivable	29,720			90
Change in escrow and reserve accounts	176			—
Additions to rental property and furniture, fixtures and equipment	(23,760		)	(16,639		)
Additions to construction in progress	(7,565		)	(7,003		)
Acquisition of rental property and associated intangible assets	—			(61,731		)
Distributions from investment in affiliates	(405		)	(590		)
Net cash provided by (used in) investing activities	55,109			(9,589		)
Cash flows from financing activities:
Financing costs	(108		)	(405		)
Issuance of debt	26,000			104,794
Repayments of debt	(84,883		)	(96,697		)
Dividends to common shareholders	(17,611		)	(17,586		)
Dividends to preferred shareholders	(6,200		)	(6,200		)
Contributions from consolidated joint venture partners	—			161
Distributions to consolidated joint venture partners	(96		)	—
Distributions to noncontrolling interests	(788		)	(789		)
Operating partnership unit redemptions	(134		)	—
Proceeds from stock option exercises	19			113
Net cash used in financing activities	(83,801		)	(16,609		)
Net (decrease) increase in cash and cash equivalents	(588		)	4,658
Cash and cash equivalents, beginning of period	13,323			8,740
Cash and cash equivalents, end of period	$	12,735		$	13,398

See accompanying notes to condensed consolidated financial statements.

7

FIRST POTOMAC REALTY TRUST

Consolidated Statements of Cash Flows – Continued

(unaudited)

Supplemental disclosure of cash flow information for the six months ended June 30 is as follows (dollars in thousands):

	2015			2014
Cash paid for interest, net	$	12,877		$	10,946
Non-cash investing and financing activities:
Debt assumed in connection with the acquisition of rental property	—			37,269
Value of common shares retired to settle employee income tax obligations	454			383
Change in fair value of the outstanding common Operating Partnership units	(1,783		)	2,318
Issuance of common Operating Partnership units in connection with the acquisition of rental property	—			40
Changes in accruals:
Additions to rental property and furniture, fixtures and equipment	(967		)	(1,571		)
Additions to development and redevelopment	3,266			(426		)

Cash paid for interest on indebtedness is net of capitalized interest of $0.9 million and $1.8 million for the six months ended June 30, 2015 and 2014, respectively.

Certain of our employees surrendered common shares owned by them valued at $0.5 million and $0.4 million during the six months ended June 30, 2015 and 2014, respectively, to satisfy their statutory minimum federal income tax obligations associated with the vesting of restricted common shares of beneficial interest.

Noncontrolling interests in First Potomac Realty Investment Limited Partnership, our operating partnership (the “Operating Partnership”), are presented at the greater of their fair value or their cost basis, which is comprised of their fair value at issuance, subsequently adjusted for the noncontrolling interests’ share of net income or losses available to common shareholders, other comprehensive income or losses, distributions received or additional contributions. We account for issuances of common Operating Partnership units individually, which could result in some portion of our noncontrolling interests being carried at fair value with the remainder being carried at historical cost. At June 30, 2015 and 2014, we recorded adjustments of $3.0 million and $5.6 million, respectively, to present certain common Operating Partnership units at the greater of their carrying value or redemption value.

No common Operating Partnership units were issued during the six months ended June 30, 2015. During the six months ended June 30, 2014, we issued 3,125 common Operating Partnership units at a fair value of $40 thousand to the seller of 840 First Street, NE to satisfy our contingent consideration obligation related to the acquisition of the property.

During the six months ended June 30, 2015 and 2014, we accrued $8.3 million and $6.6 million, respectively, of capital expenditures related to rental property and furniture, fixtures and equipment in accounts payable. During the six months ended June 30, 2015 and 2014, we accrued $4.6 million and $1.0 million, respectively, of capital expenditures related to development and redevelopment in accounts payable.

8

FIRST POTOMAC REALTY TRUST

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(1) Description of Business

First Potomac Realty Trust (the “Company”) is a leader in the ownership, management, development and redevelopment of office and business park properties in the greater Washington, D.C. region. The Company strategically focuses on acquiring and redeveloping properties that it believes can benefit from its intensive property management, leasing expertise, market knowledge and established relationships, and seeks to reposition these properties to increase their profitability and value. The Company’s portfolio primarily contains a mix of single-tenant and multi-tenant office properties and business parks. Office properties are single-story and multi-story buildings that are primarily for office use; and business parks contain buildings with office features combined with some industrial property space. The Company separates its properties into four distinct reporting segments, which it refers to as the Washington, D.C., Maryland, Northern Virginia and Southern Virginia reporting segments.

References in these unaudited condensed consolidated financial statements to “we,” “our,” “us,” the “Company” or “First Potomac,” refer to the Company and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

We conduct our business through our Operating Partnership. We are the sole general partner of, and, as of June 30, 2015, owned 100% of the preferred interest and 95.7% of the common interest in the Operating Partnership. The remaining common interests in the Operating Partnership, which are presented as noncontrolling interests in the Operating Partnership in the accompanying unaudited condensed consolidated financial statements, are limited partnership interests, some of which are owned by two of our executive officers and one of our trustees each of whom contributed certain properties and other assets to us upon our formation, and the remainder of which are owned by other unrelated parties.

At June 30, 2015, we wholly owned or had a controlling interest in properties totaling 8.0 million square feet and had a noncontrolling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures. We also owned land that can support 1.3 million square feet of additional development. Our consolidated properties were 89.1% occupied by 504 tenants at June 30, 2015. We did not include square footage that was in development or redevelopment, which totaled 0.2 million square feet at June 30, 2015, in our occupancy calculation. We derive substantially all of our revenue from leases of space within our properties. As of June 30, 2015, our largest tenant was the U.S. Government, which accounted for 13.4% of our total annualized cash basis rent, and the U.S. Government combined with government contractors, accounted for 25.5% of our total annualized cash basis rent as of June 30, 2015. We operate so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes.

(2) Summary of Significant Accounting Policies

(a) Principles of Consolidation

Our unaudited condensed consolidated financial statements include our accounts and the accounts of our Operating Partnership and the subsidiaries in which we or our Operating Partnership has a controlling interest, which includes First Potomac Management LLC, a wholly-owned subsidiary that manages the majority of our properties. All intercompany balances and transactions have been eliminated in consolidation.

We have condensed or omitted certain information and note disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”) in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2014 and as updated from time to time in our other filings with the SEC.

In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals necessary to present fairly our financial position as of June 30, 2015, the results of our operations and our comprehensive income for the three and six months ended June 30, 2015 and 2014 and our cash flows for the six months ended June 30, 2015 and 2014. Interim results are not necessarily indicative of full-year performance due, in part, to the timing of transactions and the impact of acquisitions and dispositions throughout the year as well as the seasonality of certain operating expenses such as utilities expense and snow and ice removal costs.

9

(b) Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires our management team to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Estimates include the amount of accounts receivable that may be uncollectible, recoverability of notes receivable, future cash flows, discount and capitalization rate assumptions used to fair value acquired properties and to test impairment of certain long-lived assets and goodwill; derivative valuations; market lease rates, lease-up periods, leasing and tenant improvement costs used to fair value intangible assets acquired and probability weighted cash flow analysis used to fair value contingent liabilities. Actual results could differ from those estimates.

(c) Rental Property

Rental property is initially recorded at fair value, when acquired in a business combination, or initial cost when constructed or acquired in an asset purchase. Improvements and replacements are capitalized at cost when they extend the useful life, increase capacity or improve the efficiency of the asset. Repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of our assets, by class, are as follows:

Buildings	39 years
Building improvements	5 to 20 years
Furniture, fixtures and equipment	5 to 15 years
Lease related intangible assets	The term of the related lease
Tenant improvements	Shorter of the useful life of the asset or the term of the related lease

We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of the carrying value of a property, an impairment analysis is performed. We assess potential impairments based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the property’s use and eventual disposition. This estimate is based on projections of future revenues, expenses, capital improvement costs to maintain the operating capacity, expected holding periods and capitalization rates. These cash flows consider factors such as expected market trends and leasing prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a real estate investment based on forecasted undiscounted cash flows, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. Further, we will record an impairment loss if we expect to dispose of a property in the near term, at a price below carrying value. In such an event, we will record an impairment loss based on the difference between a property’s carrying value and its projected sales price less any estimated costs to sell.

We will classify a building as held-for-sale in accordance with GAAP in the period in which we have made the decision to dispose of the building, our Board of Trustees or a designated delegate has approved the sale, there is a high likelihood a binding agreement to purchase the property will be signed under which the buyer will be required to commit a significant amount of nonrefundable cash and no significant financing contingencies exist that could cause the transaction not to be completed in a timely manner. We will cease recording depreciation on a building once it has been classified as held-for-sale. In the second quarter of 2014, we prospectively adopted Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which impacts the presentation of operations and gains or losses from disposed properties and properties classified as held-for-sale. ASU 2014-08 states that a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations or financial results. The operations of all properties that were sold prior to the adoption of ASU 2014-08, two properties (West Park and Patrick Center) that were classified as held-for-sale in previously issued financial statements prior to our adoption of ASU 2014-08 and were subsequently sold, as well as our Richmond, Virginia portfolio, which included Chesterfield Business Center, Hanover Business Center, Park Central, Virginia Technology Center and a three-acre parcel of undeveloped land (the “Richmond Portfolio”), are reflected within discontinued operations in our consolidated statements of operations for all periods presented.

If the building does not qualify as a discontinued operation under ASU 2014-08, we will classify the building's operating results, together with any impairment charges and any gains or losses on the sale of the building, in continuing operations for all

10

periods presented in our consolidated statements of operations. We will classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheet for the period the held-for-sale criteria were met.

If the building does qualify as a discontinued operation under ASU 2014-08, we will classify the building's operating results, together with any impairment charges and any gains or losses on the sale of the building, in discontinued operations in our consolidated statements of operations for all periods presented and classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheets for the periods presented. Interest expense is reclassified to discontinued operations only to the extent the disposed or held-for-sale property is secured by specific mortgage debt and the mortgage debt will not be assigned to another property owned by us after the disposition.

We recognize the fair value, if sufficient information exists to reasonably estimate the fair value, of any liability for conditional asset retirement obligations when assumed or incurred, which is generally upon acquisition, construction, development or redevelopment and/or through the normal operation of the asset.

We capitalize interest costs incurred on qualifying expenditures for real estate assets under development or redevelopment, which include our investments in assets owned through unconsolidated joint ventures that are under development or redevelopment, while being readied for their intended use in accordance with accounting requirements regarding capitalization of interest. We will capitalize interest when qualifying expenditures for the asset have been made, activities necessary to get the asset ready for its intended use are in progress and interest costs are being incurred. Capitalized interest also includes interest associated with expenditures incurred to acquire developable land while development activities are in progress. We also capitalize direct compensation costs of our construction personnel who manage the development and redevelopment projects, but only to the extent the employee’s time can be allocated to a project. Any portion of construction management costs not directly attributable to a specific project are recognized as general and administrative expense in the period incurred. We do not capitalize any other general and administrative costs such as office supplies, office rent expense or an overhead allocation to our development or redevelopment projects. Capitalized compensation costs were immaterial for the six months ended June 30, 2015 and 2014. Capitalization of interest ends when the asset is substantially complete and ready for its intended use, but no later than one year from completion of major construction activity, if the property is not occupied. We place redevelopment and development assets into service at this time and commence depreciation upon the substantial completion of tenant improvements and the recognition of revenue. Capitalized interest is depreciated over the useful life of the underlying assets, commencing when those assets are placed into service.

(d) Notes Receivable

We provide loans to the owners of real estate properties, which can be collateralized by interest in the real estate property. We record these loans as “Notes receivable, net” in our consolidated balance sheets. The loans are recorded net of any discount or issuance costs, which are amortized over the life of the respective note receivable using the effective interest method. We record interest earned from notes receivable and amortization of any discount costs or issuance costs within “Interest and other income” in our consolidated statements of operations.

We will establish a provision for anticipated credit losses associated with our notes receivable when we anticipate that we may be unable to collect any contractually due amounts. This determination is based upon such factors as delinquencies, loss experience, collateral quality and current economic or borrower conditions. Our collectability of our notes receivable may be adversely impacted by the financial stability of the Washington, D.C. region and the ability of the underlying assets to keep current tenants or attract new tenants. Estimated losses are recorded as a charge to earnings to establish an allowance for credit losses that we estimate to be adequate based on these factors. Based on the review of the above criteria, we did not record an allowance for credit losses for our notes receivable during the six months ended June 30, 2015 and 2014.

(e) Application of New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of ASU 2014-09 from January 1, 2017 to January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements or related disclosures.

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In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”), which requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The guidance will become effective January 1, 2017. The adoption of ASU 2014-15 is not expected to have an impact on our consolidated financial statements or related disclosures.

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ("ASU 2015-01"), which eliminates the concept of extraordinary items from GAAP and the requirement that an entity separately report extraordinary items in the income statement. ASU 2015-01 also requires that entities continue to evaluate whether items are unusual in nature or infrequent in occurrence for presentation and disclosure purposes. ASU 2015-01 applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted and the guidance may be applied prospectively or retrospectively to all prior periods presented in the consolidated financial statements. The adoption of ASU 2015-01 is not expected to have a material impact on our consolidated financial statements or related disclosures.

In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”), which makes certain changes to both the variable interest model and the voting model, including changes to the identification of variable interests (fees paid to a decision maker or service provider), the variable interest entity characteristics for a limited partnership or similar entity and the primary beneficiary determination. ASU 2015-02 is effective January 1, 2016. The adoption of ASU 2015-02 is not expected to have a material impact on our consolidated financial statements or related disclosures.

In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is effective for periods beginning after December 15, 2015 with early adoption permitted and will be applied on a retrospective basis. The guidance will be effective on January 1, 2016 and is not expected to have a material impact on our consolidated financial statements or related disclosures.

(f) Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation as a result of reclassifying the operating results of several properties as discontinued operations. For more information, see note 7, Dispositions.

(3) Earnings Per Common Share

Basic earnings or loss per common share (“EPS”) is calculated by dividing net income or loss attributable to common shareholders by the weighted average common shares outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented, which include stock options, non-vested shares and preferred shares. We apply the two-class method for determining EPS as our outstanding unvested shares with non-forfeitable dividend rights are considered participating securities. Our excess of distributions over earnings related to participating securities is shown as a reduction in total earnings attributable to common shareholders in our computation of EPS.

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The following table sets forth the computation of our basic and diluted earnings per common share (amounts in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Numerator for basic and diluted earnings per common share:
Income from continuing operations	$	476		$	16,796		$	1,575		$	16,211
Income (loss) from discontinued operations	—			1,538			(607		)	681
Net income	476			18,334			968			16,892
Less: Net loss (income) from continuing operations attributable to noncontrolling interests	114			(582		)	201			(429		)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests	—			(70		)	26			(29		)
Net income attributable to First Potomac Realty Trust	590			17,682			1,195			16,434
Less: Dividends on preferred shares	(3,100		)	(3,100		)	(6,200		)	(6,200		)
Net (loss) income attributable to common shareholders	(2,510		)	14,582			(5,005		)	10,234
Less: Allocation to participating securities	(69		)	(77		)	(142		)	(155		)
Net (loss) income attributable to common shareholders	$	(2,579	)	$	14,505		$	(5,147	)	$	10,079
Denominator for basic and diluted earnings per common share:
Weighted average common shares outstanding:
Basic	58,280			58,146			58,241			58,122
Diluted	58,280			58,220			58,241			58,190
Basic and diluted earnings per common share:
(Loss) income from continuing operations	$	(0.04	)	$	0.22		$	(0.08	)	$	0.16
Income (loss) from discontinued operations	—			0.03			(0.01		)	0.01
Net (loss) income	$	(0.04	)	$	0.25		$	(0.09	)	$	0.17

In accordance with GAAP regarding earnings per common share, we did not include the following potential weighted average common shares in our calculation of diluted earnings per common share as they are anti-dilutive for the periods presented (amounts in thousands):

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2015	2014	2015	2014
Stock option awards	1,046	1,145	1,069	1,170
Non-vested share awards	405	400	450	419
Series A Preferred Shares(1)	14,868	12,296	13,965	12,480
	16,319	13,841	15,484	14,069

⁽¹⁾  Our Series A Preferred Shares are only convertible into our common shares upon certain changes in control of our Company. The dilutive shares are calculated as the daily average of the face value of the Series A Preferred Shares divided by the outstanding common share price.

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(4) Rental Property

Rental property represents buildings and related improvements, net of accumulated depreciation, and developable land that are wholly owned or owned by an entity in which we have a controlling interest. All of our rental properties are located within the greater Washington, D.C. region. Rental property consists of the following (dollars in thousands):

	June 30, 2015(1)			December 31, 2014(2)
Land and land improvements	$	322,538		$	325,214
Buildings and improvements	941,248			949,683
Construction in progress	82,432			69,181
Tenant improvements	172,931			159,867
Furniture, fixtures and equipment	420			427
	1,519,569			1,504,372
Less: accumulated depreciation	(233,268		)	(215,499		)
	$	1,286,301		$	1,288,873

⁽¹⁾ Excludes rental property totaling $10.9 million at June 30, 2015 related to Rumsey Center, which was classified as held-for-sale at June 30, 2015. The property was sold on July 28, 2015.

⁽²⁾ Excludes rental property totaling $57.7 million at December 31, 2014 related to the sale of the Richmond Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2014 and was sold on March 19, 2015.

Development and Redevelopment Activity

We will place completed development and redevelopment assets in service upon the earlier of one year after major construction activity is deemed to be substantially complete or upon occupancy. We construct office buildings and/or business parks on a build-to-suit basis or with the intent to lease upon completion of construction. We own developable land that can accommodate 1.3 million square feet of additional building space, of which, 0.7 million is located in the Washington, D.C. reporting segment, 0.1 million in the Maryland reporting segment, 0.4 million in the Northern Virginia reporting segment and 0.1 million in the Southern Virginia reporting segment.

During the third quarter of 2014, we signed a lease for 167,000 square feet at a to-be-constructed building in our Northern Virginia reporting segment on vacant land that we have in our portfolio. We currently expect to complete construction of the new building in the fourth quarter of 2016. At June 30, 2015, our total investment in the development project was $16.4 million, which included the original cost basis of the applicable portion of the vacant land of $5.2 million. The majority of the costs incurred as of June 30, 2015 in excess of the original cost basis of the land relate to design and permit fees, site preparation costs, foundation work and beginning the superstructure.

On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment. At the time, the site was leased to Greyhound Lines, Inc. (“Greyhound”), which subsequently relocated its operations. Greyhound’s lease expired on August 31, 2013, at which time the property was placed into development. The joint venture anticipates developing a mixed-use project on the 1.6 acre site, which can accommodate up to 712,000 square feet. At June 30, 2015, our total investment in the development project was $56.7 million, which included the original cost basis of the property of $43.3 million. The majority of the costs in excess of the original cost basis relate to capitalized architectural fees and site preparation costs. We are currently exploring our options related to this property; however, until a definitive plan for the property has been reached and we begin significant development activities, we cannot determine the total cost of the project or the anticipated completion date.

On December 28, 2010, we acquired 440 First Street, NW, a vacant eight-story office building in our Washington, D.C. reporting segment. In October 2013, we substantially completed the redevelopment of the 139,000 square foot property. At June 30, 2015, the property was 65.7% leased and 50.1% occupied. During the fourth quarter of 2014, all vacant space at the property was placed in service. At June 30, 2015, our total investment in the redevelopment project was $55.5 million, which included the original cost basis of the property of $23.6 million.

During the second quarter of 2015, we did not place in-service any completed development or redevelopment space. At June 30, 2015, we had no completed development or redevelopment space that have yet to be placed in service.

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(5) Notes Receivable

Below is a summary of our notes receivable for our outstanding mezzanine loans (dollars in thousands):

	Balance at June 30, 2015
Property	Face Amount		Unamortized Origination Fees		Balance		Interest Rate
950 F Street, NW	$	34,000	$	—	$	34,000	9.75	%

	Balance at December 31, 2014
Property	Face Amount		Unamortized Origination Fees			Balance		Interest Rate
950 F Street, NW	$	34,000	$	—		$	34,000	9.75	%
America’s Square	29,720		(41		)	29,679		9.0	%
	$	63,720	$	(41	)	$	63,679

On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan that had an outstanding balance of $29.7 million. We provided the owners of America’s Square a $30.0 million loan in April 2011, which was secured by a portion of the owner’s interest in the property. The loan had a fixed-interest rate of 9.0% and was scheduled to mature on May 1, 2016. We received a yield maintenance payment of $2.4 million with the repayment of the loan. The proceeds from the loan repayment, including the yield maintenance payment, were used to pay down a portion of the outstanding balance of our unsecured revolving credit facility.

In December 2010, we provided a $25.0 million mezzanine loan to the owners of 950 F Street, NW, a ten-story, 287,000 square-foot office/retail building located in Washington, D.C. that is secured by a portion of the owners’ interest in the property. The loan requires monthly interest-only payments with a constant interest rate over the life of the loan. On January 10, 2014, we amended the loan to increase the outstanding balance to $34.0 million and reduce the fixed interest rate from 12.5% to 9.75%. The amended mezzanine loan matures on April 1, 2017 and is repayable in full on or after December 21, 2015. The $9.0 million increase in the loan was provided by a draw under our unsecured revolving credit facility.

We recorded interest income related to our notes receivable of $0.8 million and $2.0 million for the three and six months ended June 30, 2015, respectively, and $1.5 million and $3.0 million for the three and six months ended June 30, 2014, respectively, which is included within “Interest and other income” in our consolidated statements of operations.

We recorded no income from the amortization of origination fees for the three months ended June 30, 2015 and $5 thousand for the six months ended June 30, 2015. We recorded $7 thousand and $18 thousand of income from the amortization of origination fees for the three and six months ended June 30, 2014, respectively. During the first quarter of 2014, we wrote-off $0.1 million of unamortized fees related to the original 950 F Street, NW mezzanine loan. We recorded income from the yield maintenance payment of $2.4 million during the first quarter of 2015. The yield maintenance payment and the amortization and write-off of unamortized fees are recorded within “Interest and other income” in our consolidated statements of operations.

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(6) Investment in Affiliates

We own an interest in several joint ventures that own properties. We do not control the activities that are most significant to the joint ventures. As a result, the assets, the liabilities and the operating results of these noncontrolled joint ventures are not consolidated within our unaudited condensed consolidated financial statements. Our investments in these joint ventures are recorded as “Investment in affiliates” in our consolidated balance sheets. Our investment in affiliates consisted of the following (dollars in thousands):

	Reporting Segment	Ownership Interest		June 30, 2015		December 31, 2014
Prosperity Metro Plaza	Northern Virginia	51	%	$	24,657	$	24,651
1750 H Street, NW	Washington, D.C.	50	%	15,367		14,834
Aviation Business Park	Maryland	50	%	5,867		5,748
RiversPark I and II(1)	Maryland	25	%	2,168		2,249
				$	48,059	$	47,482

⁽¹⁾ RiversPark I and RiversPark II are owned through two separate joint ventures.

On November 12, 2014, our 51% owned unconsolidated joint venture repaid a $48.3 million mortgage loan that encumbered Prosperity Metro Plaza, a two-building, 327,000 square-foot office building located in Merrifield, Virginia. Simultaneously with the repayment, the joint venture entered into a new $50.0 million mortgage loan that has a fixed-interest rate of 3.91%. The new loan requires interest only payments through December 2024, at which time the loan requires principal and interest payments through its maturity date. The loan has a maturity date of December 1, 2029 and is repayable in full without penalty on or after June 1, 2029.

On September 26, 2014, our 25% owned unconsolidated joint venture amended a $28.0 million mortgage loan that encumbers Rivers Park I and II, a six-building, 308,000 square-foot business park located in Columbia, Maryland. The amended mortgage loan reduced the variable interest rate spread by 60 basis points and reduced the amount of outstanding principal recourse to us from 25% to 10%. The amended loan matures on September 26, 2017 and is repayable in full without penalty at any time during the term of the loan.

On July 10, 2014, an unconsolidated joint venture, in which we have a 50% ownership interest, repaid a $27.9 million mortgage loan that encumbered 1750 H Street, NW, a ten-story, 113,000 square-foot office building located in Washington, D.C. Simultaneously with the repayment, the joint venture entered into a new $32.0 million mortgage loan that has a fixed interest rate of 3.92%, a maturity date of August 1, 2024, and is repayable in full without penalty on or after August 1, 2021. The new loan requires monthly interest-only payments with a constant interest rate over the life of the loan.

The net assets of our unconsolidated joint ventures consisted of the following (dollars in thousands):

	June 30, 2015		December 31, 2014
Assets:
Rental property, net	$	193,861	$	193,533
Cash and cash equivalents	5,828		4,567
Other assets	15,635		16,748
Total assets	215,324		214,848
Liabilities:
Mortgage loans(1)	110,000		110,000
Other liabilities	6,470		7,256
Total liabilities	116,470		117,256
Net assets	$	98,854	$	97,592

⁽¹⁾  Of the total mortgage debt that encumbers our unconsolidated properties, $2.8 million is recourse to us. We believe the fair value of the potential liability to us under this guaranty is inconsequential as the likelihood of our need to perform under the debt agreement is remote.

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Our share of earnings or losses related to our unconsolidated joint ventures is recorded in our consolidated statements of operations as “Equity in (earnings) losses of affiliates.”

The following table summarizes the results of operations of our unconsolidated joint ventures, which, due to our varying ownership interests in the joint ventures and the varying operations of the joint ventures, may not be reflective of the amounts recorded in our consolidated statements of operations (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Total revenues	$	6,063		$	5,780		$	12,230		$	11,531
Total operating expenses	(1,756		)	(1,694		)	(3,912		)	(3,920		)
Net operating income	4,307			4,086			8,318			7,611
Depreciation and amortization	(2,287		)	(2,264		)	(4,536		)	(5,067		)
Other expense, net	(975		)	(1,077		)	(1,948		)	(2,087		)
Net income	$	1,045		$	745		$	1,834		$	457

We earn various fees from several of our joint ventures, which include management fees, leasing commissions and construction management fees. We recognize fees only to the extent of the third party ownership interest in our unconsolidated joint ventures. We recognized fees from our unconsolidated joint ventures of $0.2 million and $0.3 million for both the three and six months ended June 30, 2015 and 2014, respectively, which are reflected within “Tenant reimbursements and other revenues” in our consolidated statements of operations.

(7) Dispositions

During the second quarter of 2014, we prospectively adopted ASU 2014-08, which states that a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. All other disposed properties will have their operating results reflected within continuing operations on our consolidated statements of operations for all periods presented.

(a) Disposed or Held-for-Sale Properties within Continuing Operations

The following table is a summary of property dispositions or held-for-sale properties whose operating results are included in continuing operations in our consolidated statements of operations for the periods presented (dollars in thousands):

	Reporting Segment	Disposition Date	Property Type	Square Feet	Net Sale Proceeds
Rumsey Center(1)	Maryland	7/28/2015	Business Park	135,015	$	14,956
Owings Mills Business Park	Maryland	10/16/2014	Business Park	180,475	12,417
Corporate Campus at Ashburn Center	Northern Virginia	6/26/2014	Business Park	194,184	39,910

⁽¹⁾ Rumsey Center was classified as held-for-sale at June 30, 2015.

On July 28, 2015, we sold Rumsey Center, a four-building, single-story business park, which is located in our Maryland reporting segment, totaling 135,000 square feet, for net proceeds of $15.0 million. We intend to use the net proceeds from the sale of Rumsey Center to fund potential repurchases of our common shares, to repay a portion of the outstanding balance of our unsecured revolving credit facility and/or for general corporate purposes. At June 30, 2015, Rumsey Center met our held-for-sale criteria and, therefore, the assets of the buildings were classified within “Assets held-for-sale” and the liabilities of the buildings were classified within “Liabilities-held-for-sale” in our consolidated balance sheet. Rumsey Center, together with five other properties, served as collateral for our Jackson National Life Loan. On July 21, 2015, we prepaid, without penalty, the outstanding balance of the Jackson National Life Loan, $8.1 million of which was allocable to Rumsey Center and was included within “Liabilities held-for-sale” on our consolidated balance sheet at June 30, 2015. The assets classified within “Assets held-for-sale” at June 30, 2015 primarily consisted of $2.7 million in land, $10.8 million in buildings, $3.2 million in tenant improvements and $5.8 million in accumulated depreciation.  The remaining $0.8 million classified within “Assets held-for-sale” consisted of accrued straight-line rents, net of allowance for doubtful accounts, deferred costs, net of accumulated amortization and prepaid expenses and other assets. The "Liabilities held-for-sale" at June 30, 2015 primarily consisted of $8.1 million of mortgage debt. The remaining $0.2 million classified within "Liabilities held-for-sale" consisted of prepaid rent and security deposits.

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The operating results of Rumsey Center are reflected in continuing operations in our consolidated statements of operations for the three and six months ended June 30, 2015 and 2014. The operating results of Corporate Campus at Ashburn Center and Owings Mills Business Park are reflected in continuing operations in our consolidated statements of operations for the three and six months ended June 30, 2014. The following table summarizes the aggregate results of operations for the three properties that are included in continuing operations for the periods presented (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues	$	481		$	1,745		$	990		$	3,659
Property operating expenses	(129		)	(467		)	(339		)	(1,188		)
Depreciation and amortization	(146		)	(593		)	(336		)	(1,205		)
Interest expense	(110		)	(111		)	(220		)	(223		)
Impairment of rental property	—			(3,956		)	—			(3,956		)
Income (loss) from operations of disposed property	96			(3,382		)	95			(2,913		)
Gain on sale of rental property	—			21,230			—			21,230
Net income from continuing operations of disposed property	$	96		$	17,848		$	95		$	18,317

(b) Discontinued Operations

The following table is a summary of property dispositions whose operating results are reflected as discontinued operations in our consolidated statements of operations for the periods presented (dollars in thousands):

	Reporting Segment	Disposition Date	Property Type	Square Feet	Net Sale Proceeds
Richmond Portfolio	Southern Virginia	3/19/2015	Business Park	827,900	$	53,768
Patrick Center	Maryland	4/16/2014	Office	66,269	10,888
West Park	Maryland	4/2/2014	Office	28,333	2,871
Girard Business Center and Gateway Center	Maryland	1/29/2014	Business Park and Office	341,973	31,616

The Richmond Portfolio was sold subsequent to our adoption of ASU 2014-08 and resulted in a strategic shift away from the Richmond, Virginia area. As a result, we reflected the operating results of the Richmond Portfolio as discontinued operations in our consolidated statements of operations for the periods presented. All properties sold prior to our adoption of ASU 2014-08 or classified as held-for-sale in previously issued consolidated financial statements prior to our adoption of ASU 2014-08, are classified within discontinued operations.

The following table summarizes the results of operations of properties included in discontinued operations (dollars in thousands):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015			2014
Revenues	$	—	$	1,948	$	877		$	3,756
Income (loss) from operations, before taxes(1)	—		254		(975		)	(657		)
Loss on debt extinguishment	—		—		(489		)	—
Gain on sale of rental property	—		1,284		857			1,338

⁽¹⁾  During the first quarter of 2015, we accelerated $2.0 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of the Richmond Portfolio in March 2015. During the first quarter of 2014, we accelerated $1.5 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of both Girard Business Center and Gateway Center in January 2014.

We have had, and will have, no continuing involvement with any of our disposed properties subsequent to their disposal. The operations of the disposed properties were not subject to any income based taxes. With the exception of Rumsey Center, we did not dispose of or enter into any other binding agreements to sell any other properties during the six months ended June 30, 2015 and 2014.

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(8) Debt

Our borrowings consisted of the following (dollars in thousands):

	June 30,   2015(1)		December 31, 2014(2)
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	$	302,582	$	308,637
Unsecured term loan, effective interest rates ranging from LIBOR plus 1.65% to LIBOR plus 2.05%, with staggered maturity dates ranging from October 2018 to October 2020(3)	300,000		300,000
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)	152,000		205,000
	$	754,582	$	813,637

⁽¹⁾  Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We sold Rumsey Center on July 28, 2015.

⁽²⁾  The balance at December 31, 2014, includes five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

⁽³⁾  At June 30, 2015, LIBOR was 0.19%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR.

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(a) Mortgage and Construction Loans

The following table provides a summary of our mortgage and construction loans at June 30, 2015 and December 31, 2014 (dollars in thousands):

Encumbered Property	Contractual Interest Rate	Effective Interest Rate		Maturity Date	June 30,   2015			December 31, 2014
Jackson National Life Loan(1)	5.19%	5.19%		August 2015	$	56,251		$	64,943
440 First Street, NW(2)	LIBOR + 2.50%	LIBOR + 2.50%		May 2016	32,216			32,216
Storey Park(2)	LIBOR + 2.50%	LIBOR + 2.50%		October 2016	22,000			22,000
Gateway Centre Manassas Building I	7.35%	5.88%		November 2016	324			432
Hillside I and II	5.75%	4.62%		December 2016	12,745			12,949
Redland Corporate Center Buildings II & III	4.20%	4.64%		November 2017	65,186			65,816
840 First Street, NE	5.72%	6.01%		July 2020	36,217			36,539
Battlefield Corporate Center	4.26%	4.40%		November 2020	3,610			3,692
1211 Connecticut Avenue, NW	4.22%	4.47%		July 2022	29,404			29,691
1401 K Street, NW	4.80%	4.93%		June 2023	36,546			36,861
		4.75%	(3)		294,499			305,139
Unamortized fair value adjustments					(270		)	(370		)
Principal balance					294,229			304,769
Debt Classified within “Liabilities-Held-for-Sale”
Rumsey Center(1)	5.19%	5.19%		August 2015	8,083			—
Richmond Portfolio(4)
Hanover Business Center Building D	8.88%	6.63%		August 2015	—			104
Chesterfield Business Center Buildings C,D,G and H	8.50%	6.63%		September 2015	—			302
Hanover Business Center Building C	7.88%	6.63%		December 2017	—			505
Chesterfield Business Center Buildings A,B,E and F	7.45%	6.63%		June 2021	—			1,674
Airpark Business Center	7.45%	6.63%		June 2021	—			913
					8,083			3,498
Total unamortized fair value adjustments - Richmond					—			(73		)
Principal balance					8,083			3,425
Total principal balance					$	302,312		$	308,194

⁽¹⁾  At June 30, 2015, the loan was secured by the following properties: Plaza 500, Van Buren Office Park, Rumsey Center, Snowden Center, Greenbrier Technology Center II and Norfolk Business Center. At June 30, 2015, $8.1 million of the $64.3 million outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. On July 21, 2015, we prepaid, without penalty, the outstanding balance on our Jackson National Life Loan, including the portion that was allocable to Rumsey Center, with a draw under our unsecured revolving credit facility. We subsequently sold Rumsey Center on July 28, 2015.

⁽²⁾  At June 30, 2015, LIBOR was 0.19%.

⁽³⁾  Weighted average interest rate on total mortgage and construction debt.

⁽⁴⁾  The mortgage loans and unamortized fair value adjustments that encumbered properties within the Richmond Portfolio were classified within “Liabilities held-for-sale” on our consolidated balance sheet at December 31, 2014. The loans were prepaid upon the sale of the Richmond Portfolio on March 19, 2015.

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On July 21, 2015, we prepaid, without penalty, the $64.2 million outstanding balance on our Jackson National Life Loan, which was scheduled to mature in August 2015 and was secured by the following properties: Plaza 500, Van Buren Office Park, Greenbrier Technology Center II, Norfolk Business Center, Snowden Center and Rumsey Center, which was subsequently sold on July 28, 2015. The loan was prepaid with a draw under our unsecured revolving credit facility.

Land Loan

On October 16, 2014, our 97% owned consolidated joint venture that owns Storey Park repaid a $22.0 million loan that encumbered the Storey Park land and was subject to a 5.0% interest rate floor. Simultaneously with the repayment, the joint venture entered into a new $22.0 million land loan with a variable interest rate of LIBOR plus 2.50%. The new loan matures on October 16, 2016, with a one-year extension at our option, and is repayable in full without penalty at any time during the term of the loan. Per the terms of the loan agreement, $6.0 million of the outstanding principal balance and all of the outstanding accrued interest is recourse to us. As of June 30, 2015, we were in compliance with all the financial covenants of the Storey Park land loan.

Construction Loan

On June 5, 2013, we entered into a construction loan (the “Construction Loan”) that is collateralized by our 440 First Street, NW property, which underwent a major redevelopment that was substantially completed in October 2013. The Construction Loan has a borrowing capacity of up to $43.5 million, of which we initially borrowed $21.7 million in 2013 and borrowed an additional $10.5 million in 2014. The Construction Loan has a variable interest rate of LIBOR plus a spread of 2.5% and matures in May 2016, with two one-year extension options at our discretion. We can repay all or a portion of the Construction Loan, without penalty, at any time during the term of the loan. At June 30, 2015, per the terms of the loan agreement, 50% of the outstanding principal balance and all of the outstanding accrued interest were recourse to us. The percentage of outstanding principal balance that is recourse to us can be reduced upon the property achieving certain operating thresholds. As of June 30, 2015, we were in compliance with all the financial covenants of the Construction Loan.

(b) Unsecured Term Loan

The table below shows the outstanding balances and the interest rates of the three tranches of the $300.0 million unsecured term loan at June 30, 2015 (dollars in thousands):

	Maturity Date	Amount		Interest Rate(1)
Tranche A	October 2018	$	100,000	LIBOR, plus 165 basis points
Tranche B	October 2019	100,000		LIBOR, plus 180 basis points
Tranche C	October 2020	100,000		LIBOR, plus 205 basis points
		$	300,000

⁽¹⁾  At June 30, 2015, LIBOR was 0.19%. The interest rate spread is subject to change based on our maximum total indebtedness ratio. For more information, see note 8(e) Debt – Financial Covenants.

The term loan agreement contains various restrictive covenants substantially identical to those contained in our unsecured revolving credit facility, including with respect to liens, indebtedness, investments, distributions, mergers and asset sales. In addition, the agreement requires that we satisfy certain financial covenants that are also substantially identical to those contained in our unsecured revolving credit facility. The agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of our Company under the agreement to be immediately due and payable. As of June 30, 2015, we were in compliance with all the financial covenants of the unsecured term loan.

(c) Unsecured Revolving Credit Facility

During the second quarter of 2015, we borrowed $13.0 million under the unsecured revolving credit facility, which was used for general corporate purposes, and repaid $4.0 million of the outstanding balance under the unsecured revolving credit facility with available cash. For the three and six months ended June 30, 2015, our weighted average borrowings under the unsecured revolving credit facility were $149.4 million and $171.3 million, respectively, with a weighted average interest rate of 1.9% for both periods, compared with weighted average borrowings of $112.7 million and $104.9 million for the three and six months ended June 30, 2014, respectively, with a weighted average interest rate of 1.7% for both periods in 2014. Our maximum outstanding borrowings were $156.0 million and $218.0 million for the three and six months ended June 30, 2015, respectively, and $158.0

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million for both the three and six months ended June 30, 2014. At June 30, 2015, outstanding borrowings under the unsecured revolving credit facility were $152.0 million with a weighted average interest rate of 1.9%. At June 30, 2015, LIBOR was 0.19% and the applicable spread on our unsecured revolving credit facility was 170 basis points. The available capacity under the unsecured revolving credit facility was $92.0 million as of the date of this filing. We are required to pay an annual commitment fee of 0.25% based on the amount of unused capacity under the unsecured revolving credit facility. As of June 30, 2015, we were in compliance with all the financial covenants of the unsecured revolving credit facility. For more information, see note 8(e) Debt – Financial Covenants.

(d) Interest Rate Swap Agreements

At June 30, 2015, we had eleven interest rate swap agreements outstanding that collectively fixed LIBOR, at a weighted average interest rate of 1.5%, on $300.0 million of our variable rate debt. See note 9, Derivative Instruments, for more information about our interest rate swap agreements.

(e) Financial Covenants

Our outstanding corporate debt agreements contain specific financial covenants that may impact future financing decisions made by us or may be impacted by a decline in operations. These covenants relate to our allowable leverage, minimum tangible net worth, fixed charge coverage and other financial metrics. As of June 30, 2015, we were in compliance with the covenants of our unsecured term loan and unsecured revolving credit facility and any such financial covenants of our mortgage debt (including the Construction Loan and the Storey Park land loan).

Our continued ability to borrow under the unsecured revolving credit facility is subject to compliance with financial and operating covenants, and a failure to comply with any of these covenants could result in a default under the credit facility. These debt agreements also contain cross-default provisions that would be triggered if we were in default under other loans, including mortgage loans, in excess of certain amounts. In the event of a default, the lenders could accelerate the timing of payments under the debt obligations and we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all, which would have a material adverse effect on our liquidity, financial condition, results of operations and ability to make distributions to our shareholders.

Our unsecured revolving credit facility and unsecured term loan are subject to interest rate spreads that float based on the quarterly measurement of our maximum consolidated total indebtedness to gross asset value ratio. Based on our leverage ratio at June 30, 2015, the applicable interest rate spreads on the unsecured revolving credit facility and the unsecured term loan will be unchanged.

(9) Derivative Instruments

We are exposed to certain risks arising from business operations and economic factors. We use derivative financial instruments to manage exposures that arise from business activities in which our future exposure to interest rate fluctuations is unknown. The objective in the use of an interest rate derivative is to add stability to interest expenses and manage exposure to interest rate changes. We do not use derivatives for trading or speculative purposes and we intend to enter into derivative agreements only with counterparties that we believe have a strong credit rating to mitigate the risk of counterparty default or insolvency. No hedging activity can completely insulate us from the risks associated with changes in interest rates. Moreover, interest rate hedging could fail to protect us or adversely affect us because, among other things:

• available interest rate hedging may not correspond directly with the interest rate risk for which we seek protection;

• the duration of the hedge may not match the duration of the related liability;

• the party owing money in the hedging transaction may default on its obligation to pay; and

• the credit quality of the party owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign its side of the hedging transaction.

We enter into interest rate swap agreements to hedge our exposure on our variable rate debt against fluctuations in prevailing interest rates. The interest rate swap agreements fix LIBOR to a specified interest rate; however, the swap agreements do not affect the contractual spreads associated with each variable debt instrument’s applicable interest rate.

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At June 30, 2015, we had eleven interest rate swap agreements outstanding that collectively fixed LIBOR at a weighted average interest rate of 1.5% on $300.0 million of our variable rate debt. Our interest rate swap agreements are summarized below (dollars in thousands):

Maturity Date	Notional Amount		Interest Rate Contractual Component	Fixed LIBOR Interest Rate
July 2016	$	35,000	LIBOR	1.754	%
July 2016	25,000		LIBOR	1.763	%
July 2017	30,000		LIBOR	2.093	%
July 2017	30,000		LIBOR	2.093	%
July 2017	25,000		LIBOR	1.129	%
July 2017	12,500		LIBOR	1.129	%
July 2017	50,000		LIBOR	0.955	%
July 2018	12,500		LIBOR	1.383	%
July 2018	30,000		LIBOR	1.660	%
July 2018	25,000		LIBOR	1.394	%
July 2018	25,000		LIBOR	1.135	%
Total/Weighted Average	$	300,000		1.505	%

Our interest rate swap agreements are designated as cash flow hedges and we record the effective portion of any unrealized gains associated with the change in fair value of the swap agreements within “Accumulated other comprehensive loss” and “Prepaid expenses and other assets” and the effective portion of any unrealized losses within “Accumulated other comprehensive loss” and “Accounts payable and other liabilities” on our consolidated balance sheets. We record our proportionate share of any unrealized gains or losses on our cash flow hedges associated with our unconsolidated joint ventures within “Accumulated other comprehensive loss” and “Investment in affiliates” on our consolidated balance sheets. We record any gains or losses incurred as a result of each interest rate swap agreement’s fixed rate deviating from our respective loan’s contractual rate within “Interest expense” in our consolidated statements of operations. We did not have any material ineffectiveness associated with our cash flow hedges during the six months ended June 30, 2015 and 2014.

Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to “Interest expense” on our consolidated statements of operations as interest payments are made on our variable-rate debt. We reclassified accumulated other comprehensive loss as an increase to interest expense of $1.0 million for both the three months ended June 30, 2015 and 2014, and $2.0 million and $2.1 million for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, we estimated that $3.6 million of our accumulated other comprehensive loss will be reclassified as an increase to interest expense over the following twelve months.

(10) Fair Value Measurements

Our application of GAAP outlines a valuation framework and creates a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The required disclosures increase the consistency and comparability of fair value measurements and the related disclosures. Fair value is identified, under the standard, as the price that would be received to sell an asset or paid to transfer a liability between willing third parties at the measurement date (an exit price). In accordance with GAAP, certain assets and liabilities must be measured at fair value, and we provide the necessary disclosures that are required for items measured at fair value as outlined in the accounting requirements regarding fair value.

Financial assets and liabilities, as well as those non-financial assets and liabilities requiring fair value measurement, are measured using inputs from three levels of the fair value hierarchy.

The three levels are as follows:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

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Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability.

In accordance with accounting provisions and the fair value hierarchy described above, the following table shows the fair value of our consolidated assets and liabilities that are measured on a recurring basis as of June 30, 2015 and December 31, 2014 (dollars in thousands):

	Balance at    June 30, 2015		Level 1		Level 2		Level 3
Recurring Measurements:
Derivative instrument-swap liabilities	$	3,770	$	—	$	3,770	$	—
	Balance at    December 31, 2014		Level 1		Level 2		Level 3
Recurring Measurements:
Derivative instrument-swap assets	$	133	$	—	$	133	$	—
Derivative instrument-swap liabilities	3,569		—		3,569		—

We did not have any assets or liabilities that were measured on a non-recurring basis at June 30, 2015 and December 31, 2014. We did not re-measure or complete any transactions involving non-financial assets or non-financial liabilities that are measured at fair value on a recurring basis during the six months ended June 30, 2015 and 2014. Also, no transfers into or out of fair value measurement levels for assets or liabilities that are measured on a recurring basis occurred during the six months ended June 30, 2015 and 2014.

Interest Rate Derivatives

At June 30, 2015, we had hedged $300.0 million of our variable rate debt through eleven interest rate swap agreements. See note 9, Derivative Instruments, for more information about our interest rate swap agreements.

The interest rate derivatives are fair valued based on prevailing market yield curves on the measurement date and also incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual inputs and guarantees. We use a third party to assist in valuing our interest rate swap agreements. A daily “snapshot” of the market is taken to obtain close of business rates. The snapshot includes over 7,500 rates including LIBOR fixings, Eurodollar futures, swap rates, exchange rates, treasuries, etc. This market data is obtained via direct feeds from Bloomberg and Reuters and from Inter-Dealer Brokers. The selected rates are compared to their historical values. Any rate that has changed by more than normal mean and related standard deviation would be considered an outlier and flagged for further investigation. The rates are then compiled through a valuation process that generates daily valuations, which are used to value our interest rate swap agreements. Our interest rate swap derivatives are effective cash flow hedges and the effective portion of the change in fair value is recorded in the equity section of our consolidated balance sheets as “Accumulated other comprehensive loss.”

Financial Instruments

The carrying amounts of cash equivalents, accounts and other receivables, accounts payable and other liabilities, with the exception of any items listed above, approximate their fair values due to their short-term maturities. We determine the fair value of our notes receivable and debt instruments by discounting future contractual principal and interest payments using prevailing market rates for securities with similar terms and characteristics at the balance sheet date. We deem the fair value measurement of our debt instruments as a Level 2 measurement as we use quoted interest rates for similar debt instruments to value our debt instruments. We use quoted market interest rates for similar notes to value our notes receivable, which we consider a Level 2 measurement as we do not believe notes receivable trade in an active market.

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The carrying amount and estimated fair value of our notes receivable and debt instruments are as follows (amounts in thousands):

	June 30, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Notes receivable(1)	$	34,000	$	34,000	$	63,679	$	63,720
Financial Liabilities:
Mortgage debt(2)(3)	$	302,582	$	293,426	$	308,637	$	292,882
Unsecured term loan	300,000		300,375		300,000		300,000
Unsecured revolving credit facility	152,000		152,034		205,000		205,000
Total	$	754,582	$	745,835	$	813,637	$	797,882

⁽¹⁾  The principal amount of our notes receivable was $34.0 million and $63.7 million at June 30, 2015 and December 31, 2014, respectively. On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan, which had an outstanding $29.7 million balance of the $30.0 million mezzanine loan that we provided them in April 2011.

⁽²⁾  Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We subsequently sold Rumsey Center on July 28, 2015.

⁽³⁾  The balances at December 31, 2014, include five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

(11) Equity

In July 2015, our Board of Trustees authorized a share repurchase program that allows us to acquire up to five million of our common shares of beneficial interest from time to time over the next twelve months in open market transactions at prevailing prices or in negotiated private transactions. As of the date of this filing, we had 58.8 million common shares outstanding. We are not obligated to acquire any particular amount of common shares and the share repurchase program may be suspended by the Board of Trustees at any time.

On July 28, 2015, we declared a dividend of $0.15 per common share, equating to an annualized dividend of $0.60 per common share. The dividend will be paid on August 17, 2015 to common shareholders of record as of August 10, 2015. We also declared a dividend of $0.484375 per share on our Series A Preferred Shares. The dividend will be paid on August 17, 2015 to preferred shareholders of record as of August 10, 2015. Dividends on all non-vested share awards are recorded as a reduction of shareholders’ equity. For each dividend paid by us on our common and preferred shares, the Operating Partnership distributes an equivalent distribution on our common and preferred Operating Partnership units, respectively.

On April 28, 2015, we declared a dividend of $0.15 per common share, equating to an annualized dividend of $0.60 per common share. The dividend was paid on May 15, 2015 to common shareholders of record as of May 8, 2015. We also declared a dividend of $0.484375 per share on our Series A Preferred Shares. The dividend was paid on May 15, 2015 to preferred shareholders of record as of May 8, 2015.

Our unsecured revolving credit facility, unsecured term loan, the Construction Loan and the Storey Park land loan contain certain restrictions that include, among other things, requirements to maintain specified coverage ratios and other financial covenants, which may limit our ability to make distributions to our common and preferred shareholders. Further, distributions with respect to our common shares are subject to our ability to first satisfy our obligations to pay distributions to the holders of our Series A Preferred Shares.

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As a result of the redemption feature of the Operating Partnership units, the noncontrolling interests associated with the Operating Partnership are recorded outside of permanent equity. Our equity and redeemable noncontrolling interests are as follows (dollars in thousands):

	First Potomac Realty Trust			Non-redeemable noncontrolling interests			Total Equity			Redeemable noncontrolling interests
Balance at December 31, 2014	$	710,007		$	898		$	710,905		$	33,332
Net income (loss)	1,195			(2		)	1,193			(225		)
Changes in ownership, net	3,219			—			3,219			(1,916		)
Distributions to owners	(23,811		)	(96		)	(23,907		)	(788		)
Other comprehensive loss	(314		)	—			(314		)	(14		)
Balance at June 30, 2015	$	690,296		$	800		$	691,096		$	30,389

	First Potomac Realty Trust			Non-redeemable noncontrolling interests		Total Equity			Redeemable noncontrolling interests
Balance at December 31, 2013	$	738,510		$	781	$	739,291		$	33,221
Net income	16,434			—		16,434			458
Changes in ownership, net	(886		)	161		(725		)	2,358
Distributions to owners	(23,786		)	—		(23,786		)	(789		)
Other comprehensive loss	(767		)	—		(767		)	(34		)
Balance at June 30, 2014	$	729,505		$	942	$	730,447		$	35,214

A summary of our accumulated other comprehensive loss is as follows (dollars in thousands):

	2015			2014
Beginning balance at January 1,	$	(3,268	)	$	(3,836	)
Net unrealized loss on derivative instruments	(328		)	(801		)
Net loss attributable to noncontrolling interests	14			34
Ending balance at June 30,	$	(3,582	)	$	(4,603	)

(12) Noncontrolling Interests

(a) Noncontrolling Interests in the Operating Partnership

Noncontrolling interests relate to the common interests in the Operating Partnership not owned by us. Interests in the Operating Partnership are owned by limited partners who contributed buildings and other assets to the Operating Partnership in exchange for common Operating Partnership units. Limited partners have the right to tender their units for redemption in exchange for, at our option, our common shares on a one-for-one basis or cash based on the fair value of our common shares at the date of redemption. Unitholders receive a distribution per unit equivalent to the dividend per common share. Differences between amounts paid to redeem noncontrolling interests and their carrying values are charged or credited to equity. As a result of the redemption feature of the Operating Partnership units, the noncontrolling interests are recorded outside of permanent equity.

Noncontrolling interests are presented at the greater of their fair value or their cost basis, which is comprised of their fair value at issuance, subsequently adjusted for the noncontrolling interests’ share of net income or losses available to common shareholders, other comprehensive income or losses, distributions received or additional contributions. We account for issuances of common Operating Partnership units individually, which could result in some portion of our noncontrolling interests being carried at fair value with the remainder being carried at historical cost. Based on the closing price of our common shares at June 30, 2015, the cost to acquire, through cash purchase or issuance of our common shares, all of the outstanding common Operating Partnership units not owned by us would be approximately $27.0 million. At June 30, 2015 and December 31, 2014, we recorded adjustments of $3.0 million and $4.7 million, respectively, to present certain common Operating Partnership units at the greater of their carrying value or redemption value.

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At June 30, 2015, 2,619,069 of the total common Operating Partnership units, or 4.3%, were not owned by us. During the three months ended June 30, 2015, 11,508 common Operating Partnership units were redeemed with available cash. There were no common Operating Partnership units redeemed for common shares during the six months ended June 30, 2015. During the first quarter of 2014, we issued 3,125 common Operating Partnership units to the seller of 840 First Street, NE to satisfy a contingent consideration obligation related to the acquisition of the property.

(b) Noncontrolling Interests in a Consolidated Partnership

When we are deemed to have a controlling interest in a partially-owned entity, we will consolidate all of the entity’s assets, liabilities and operating results within our condensed consolidated financial statements. The net assets contributed to the consolidated entity by the third party, if any, will be reflected within permanent equity in our consolidated balance sheets to the extent they are not mandatorily redeemable. The amount will be recorded based on the third party’s initial investment in the consolidated entity and will be adjusted to reflect the third party’s share of earnings or losses in the consolidated entity and any distributions received or additional contributions made by the third party. The earnings or losses from the entity attributable to the third party are recorded as a component of “Net loss (income) attributable to noncontrolling interests” in our consolidated statements of operations.

On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment. At the time, the site was leased to Greyhound, which subsequently relocated its operations. Greyhound’s lease expired on August 31, 2013, at which time the property was placed into development. The joint venture anticipates developing a mixed-use project on the 1.6 acre site, which can accommodate up to 712,000 square feet. At June 30, 2015, our total investment in the development project was $56.7 million, which included the original cost basis of the property of $43.3 million. The majority of the costs in excess of the original cost basis relate to capitalized architectural fees and site preparation costs. We are currently exploring our options related to this property; however, until a definitive plan for the property has been reached and we begin significant development activities, we cannot determine the total cost of the project or the anticipated completion date.

(13) Share-Based Payments

We record costs related to our share-based compensation based on the grant-date fair value calculated in accordance with GAAP. We recognize share-based compensation costs on a straight-line basis over the requisite service period for each award and these costs are recorded within “General and administrative expense” or “Property operating expense” in our consolidated statements of operations based on the employee’s job function.

Non-Vested Share Awards

We issue non-vested common share awards that either vest over a specific time period that is identified at the time of issuance or vest upon the achievement of specific performance goals that are identified at the time of issuance. We issue new common shares, subject to restrictions, upon each grant of non-vested common share awards. In May 2015, we granted a total of 31,218 non-vested common shares to our non-employee trustees, all of which will vest on the earlier of the first anniversary of the award date or the date of our 2016 annual meeting of shareholders, subject to continued service by the trustee until that date.

We recognized compensation expense associated with our non-vested common share awards of $0.7 million and $1.3 million during the three and six months ended June 30, 2015, respectively, compared with $0.7 million and $1.4 million during the three and six months ended June 30, 2014, respectively. Dividends on all non-vested common share awards are recorded as a reduction of equity. We apply the two-class method for determining EPS as our outstanding non-vested common shares with non-forfeitable dividend rights are considered participating securities. Our excess of dividends over earnings related to participating securities are shown as a reduction in net income or loss attributable to common shareholders in our computation of EPS.

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A summary of our non-vested common share awards at June 30, 2015 is as follows:

	Non-vested Common Shares		Weighted Average Grant Date Fair Value
Non-vested at March 31, 2015	461,615		$	12.83
Granted	31,218		10.57
Vested	(34,835	)	12.96
Non-vested at June 30, 2015	457,998		$	12.67

We value our non-vested time-based share awards at the grant date fair value, which is the market price of our common shares. As of June 30, 2015, we had $3.7 million of unrecognized compensation cost related to non-vested common shares. We anticipate this cost will be recognized over a weighted-average period of 2.0 years.

(14) Segment Information

Our reportable segments consist of four distinct reporting and operational segments within the greater Washington, D.C. region in which we operate: Washington, D.C., Maryland, Northern Virginia and Southern Virginia. We evaluate the performance of our segments based on the operating results of the properties located within each segment, which excludes large non-recurring gains and losses, gains or losses from sale of rental property, interest expense, general and administrative costs, acquisition costs or any other indirect corporate expense to the segments. In addition, the segments do not have significant non-cash items other than straight-line and deferred market rent amortization reported in their operating results. There are no inter-segment sales or transfers recorded between segments.

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The results of operations of our four reporting segments for the three and six months ended June 30, 2015 and 2014 are as follows (dollars in thousands):

	Three Months Ended June 30, 2015
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Number of buildings(1)	6			38			49			19			112
Square feet(1)	914,912			1,997,789			3,020,388			2,023,927			7,957,016
Total revenues	$	11,154		$	11,034		$	13,700		$	7,151		$	43,039
Property operating expense	(2,987		)	(2,645		)	(3,191		)	(1,838		)	(10,661		)
Real estate taxes and insurance	(1,956		)	(896		)	(1,345		)	(614		)	(4,811		)
Total property operating income	$	6,211		$	7,493		$	9,164		$	4,699		27,567
Depreciation and amortization expense													(16,817		)
General and administrative													(4,979		)
Other expenses													(5,295		)
Net income													$	476
Capital expenditures(2)	$	3,983		$	2,153		$	5,037		$	910		$	12,083
	Three Months Ended June 30, 2014
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Number of buildings(1)(3)	5			42			49			38			134
Square feet(1)(3)	649,107			2,178,379			3,021,597			2,851,568			8,700,651
Total revenues	$	7,827		$	11,227		$	13,146		$	7,107		$	39,307
Property operating expense	(2,407		)	(2,427		)	(3,107		)	(2,283		)	(10,224		)
Real estate taxes and insurance	(1,247		)	(975		)	(1,465		)	(554		)	(4,241		)
Total property operating income	$	4,173		$	7,825		$	8,574		$	4,270		24,842
Depreciation and amortization expense													(14,829		)
General and administrative													(5,218		)
Acquisition costs													(1,111		)
Impairment of rental property													(3,956		)
Other income													17,068
Income from discontinued operations													1,538
Net income													$	18,334
Capital expenditures(2)	$	4,901		$	2,701		$	1,537		$	2,749		$	12,249

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	Six Months Ended June 30, 2015
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Total revenues	$	22,186		$	22,739		$	27,815		$	14,148		$	86,888
Property operating expense	(6,126		)	(6,663		)	(7,257		)	(3,729		)	(23,775		)
Real estate taxes and insurance	(3,979		)	(1,788		)	(2,894		)	(1,193		)	(9,854		)
Total property operating income	$	12,081		$	14,288		$	17,664		$	9,226		53,259
Depreciation and amortization expense													(33,151		)
General and administrative													(10,505		)
Other expenses													(8,028		)
Loss from discontinued operations													(607		)
Net income													$	968
Total assets(4)(5)	$	505,270		$	357,422		$	450,367		$	167,860		$	1,537,482
Capital expenditures(2)	$	7,419		$	4,317		$	15,880		$	3,400		$	31,325
	Six Months Ended June 30, 2014
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Total revenues	$	14,767		$	22,872		$	26,813		$	14,219		$	78,671
Property operating expense	(4,393		)	(6,373		)	(7,083		)	(4,412		)	(22,261		)
Real estate taxes and insurance	(2,301		)	(1,978		)	(2,989		)	(1,105		)	(8,373		)
Total property operating income	$	8,073		$	14,521		$	16,741		$	8,702		48,037
Depreciation and amortization expense													(29,139		)
General and administrative													(10,414		)
Acquisition costs													(1,179		)
Impairment of rental property													(3,956		)
Other income													12,862
Income from discontinued operations													681
Net income													$	16,892
Total assets(4)(5)	$	410,000		$	374,416		$	438,254		$	229,263		$	1,538,266
Capital expenditures(2)	$	11,382		$	5,091		$	2,359		$	4,172		$	23,642

⁽¹⁾  Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

⁽²⁾  Capital expenditures for corporate assets not allocated to any of our reportable segments totaled none and $361 for the three months ended June 30, 2015 and 2014, respectively, and $309 and $638 for the six months ended June 30, 2015 and 2014, respectively.

⁽³⁾  Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

⁽⁴⁾  Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates.

⁽⁵⁾  Corporate assets not allocated to any of our reportable segments totaled $56,563 and $86,333 at June 30, 2015 and 2014, respectively.

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. The discussion and analysis is derived from the consolidated operating results and activities of First Potomac Realty Trust. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. The Company’s actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and included elsewhere in this Quarterly Report on Form 10-Q. See “Special Note About Forward-Looking Statements” above.

References in this Quarterly Report on Form 10-Q to “we,” “our,” “us,” the “Company” or “First Potomac,” refer to First Potomac Realty Trust and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

Overview

We are a leader in the ownership, management, development and redevelopment of office and business park properties in the greater Washington, D.C. region. We strategically focus on acquiring and redeveloping properties that we believe can benefit from our intensive property management, leasing expertise, market knowledge and established relationships, and seek to reposition these properties to increase their profitability and value. Our portfolio primarily contains a mix of single-tenant and multi-tenant office properties and business parks. Office properties are single-story and multi-story buildings that are primarily for office use; and business parks contain buildings with office features combined with some industrial property space. We separate our properties into four distinct reporting segments, which we refer to as the Washington, D.C., Maryland, Northern Virginia and Southern Virginia reporting segments.

We conduct our business through First Potomac Realty Investment Limited Partnership, our operating partnership (the “Operating Partnership”). We are the sole general partner of, and, as of June 30, 2015, owned 100% of the preferred interest and 95.7% of the common interest in the Operating Partnership. The remaining common interests in the Operating Partnership, which are presented as noncontrolling interests in the Operating Partnership in the accompanying unaudited condensed consolidated financial statements, are limited partnership interests, some of which are owned by two of our executive officers and one of our trustees, each of whom contributed certain properties and other assets to us upon our formation, and the remainder of which are owned by other unrelated parties.

At June 30, 2015, we wholly owned or had a controlling interest in properties totaling 8.0 million square feet and had a noncontrolling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures. We also owned land that can support approximately 1.3 million square feet of additional development. Our consolidated properties were 89.1% occupied by 504 tenants at June 30, 2015. We did not include square footage that was in development or redevelopment, which totaled 0.2 million square feet at June 30, 2015, in our occupancy calculation. We derive substantially all of our revenue from leases of space within our properties. As of June 30, 2015, our largest tenant was the U.S. Government, which accounted for 13.4% of our total annualized cash basis rent, and the U.S. Government combined with government contractors, accounted for 25.5% of our total annualized cash basis rent as of June 30, 2015. We operate so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes.

The primary source of our revenue is rent received from tenants under long-term (generally three to ten years) operating leases at our properties, including reimbursements from tenants for certain operating costs. Additionally, we may generate earnings from the sale of assets to third parties or contributed into joint ventures.

Our long-term growth will principally be driven by our ability to:

• maintain and increase occupancy rates and/or increase rental rates at our properties;

• sell non-core assets to third parties, or contribute properties to joint ventures, at favorable prices;

• continue to grow our portfolio through acquisitions of new properties, potentially through joint ventures, or reinvest in our company through share repurchases and/or redemption of our preferred shares when they become redeemable;

• develop and redevelop existing assets; and

• execute initiatives designed to increase balance sheet capacity and expand the potential sources of capital.

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Executive Summary

For the three and six months ended June 30, 2015, we had net income of $0.5 million and $1.0 million, respectively, compared with net income of $18.3 million and $16.9 million, respectively, for the same periods in 2014. The decrease in net income for the three and six months ended June 30, 2015 compared with the same periods in 2014 was primarily due to recording a $21.2 million gain on the sale of Corporate Campus at Ashburn Center in the second quarter of 2014. The decrease in net income for the three and six months ended June 30, 2015 was partially offset by an increase in same-property net operating income during each such period. In addition, the decrease in net income for the six months ended June 30, 2015 compared with the same period in 2014 was partially offset by a $2.4 million yield maintenance payment that we received in the first quarter of 2015 associated with the prepayment of the America’s Square mezzanine loan.

Funds From Operations (“FFO”) increased for the three and six months ended June 30, 2015 compared with the same periods in 2014 due to an increase in same-property net operating income, as a result of higher occupancy in our portfolio. The increase in FFO for the six months ended June 30, 2015 compared with the same period in 2014 was also attributable to a $2.4 million yield maintenance payment that we received in the first quarter of 2015 associated with the prepayment of the America’s Square mezzanine loan.

FFO is a non-GAAP financial measure. For a description of FFO, including why we believe our presentation is useful and a reconciliation of FFO to net income attributable to First Potomac Realty Trust, see “Funds From Operations.”

Significant Activity

• Executed 197,000 square feet of leases, including 92,000 square feet of new leases;

• Leased percentage in consolidated portfolio was 91.0% as compared with 89.5% at June 30, 2014;

• Increased occupied percentage to 89.1% from 86.0% at June 30, 2014, which is the highest level of occupancy we have achieved since the first quarter of 2006;

• In July, our Board of Trustees authorized a share repurchase program under which we may acquire up to five million common shares over the next twelve months; and

• In July, we sold Rumsey Center, a four-building, single-story business park totaling 135,000 square feet, for net proceeds of $15.0 million, bringing aggregate net proceeds from dispositions for the year to $68.7 million.

Recent Developments

In July 2015, after thorough evaluation and discussion with the Board of Trustees, we implemented a plan designed to improve performance and create shareholder value by commencing a process to accelerate the sale of at least $200 million of assets. We will explore the sale of certain development assets, as well as non-core assets and those assets where we feel we have maximized value. We intend to utilize the proceeds from dispositions to repurchase common shares under the our share repurchase program, redeem the Company’s 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, in whole or in part, beginning in late January 2016 and/or repay outstanding indebtedness.

Informal SEC Inquiry

As previously disclosed in our Annual Reports on Form 10-K for the years ended December 31, 2014, 2013 and 2012, we were informed that the SEC initiated an informal inquiry relating to the matters that were the subject of the Audit Committee’s internal investigation regarding the material weakness previously identified in our Annual Report on Form 10-K for the year ended December 31, 2011. The SEC staff has informed us that this inquiry should not be construed as an indication by the SEC or its staff that any violations of law have occurred, nor considered a reflection upon any person, entity or security. We have been, and intend to continue, voluntarily cooperating fully with the SEC. The scope and outcome of this matter cannot be determined at this time.

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Properties:

The following sets forth certain information about our properties by segment as of June 30, 2015 (including properties in development and redevelopment, dollars in thousands):

WASHINGTON, D.C. REGION

Property	Buildings	Sub-Market(1)	Square Feet	Annualized Cash Basis Rent(2)		Leased at June 30, 2015		Occupied at June 30, 2015
Office
11 Dupont Circle, NW	1	CBD	151,198	$	5,443	100.0	%	100.0	%
440 First Street, NW(3)	1	Capitol Hill	138,600	2,845		65.7	%	50.1	%
500 First Street, NW	1	Capitol Hill	129,035	4,638		100.0	%	100.0	%
840 First Street, NE	1	NoMA	248,536	7,181		97.7	%	97.7	%
1211 Connecticut Avenue, NW	1	CBD	130,085	3,593		97.5	%	96.8	%
1401 K Street, NW	1	East End	117,458	3,310		82.8	%	82.8	%
Total/Weighted Average	6		914,912	27,010		91.6	%	89.1	%
Development
Storey Park(4)	—	NoMA	—	—
Unconsolidated Joint Venture
1750 H Street, NW	1	CBD	113,131	3,713		91.1	%	88.1	%
Region Total/Weighted Average	7		1,028,043	$	30,723	91.6	%	89.0	%

⁽¹⁾  CBD refers to Central Business District; NoMA refers to North of Massachusetts Avenue.

⁽²⁾  Annualized cash basis rent, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full-service leases. The operating expense reimbursements primarily relate to real estate taxes and insurance expenses. Includes leased spaces that are not yet occupied.

⁽³⁾  In October 2013, we substantially completed the redevelopment of the property. During the fourth quarter of 2014, we placed all the vacant space into service.

⁽⁴⁾  The property was acquired through a consolidated joint venture in which we have a 97% controlling economic interest. The property was placed into development on September 1, 2013. The joint venture anticipates developing a mixed-used project on the 1.6 acre site, which can accommodate up to 712,000 square feet. We are currently exploring our options related to this property; however, until a definitive plan for the property has been reached and we begin significant development activities, we cannot determine the total cost of the project or the anticipated completion date.

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MARYLAND REGION

Property	Buildings	Location	Square Feet	Annualized Cash Basis Rent(1)		Leased at June 30, 2015		Occupied at June 30, 2015
Business Park
Ammendale Business Park(2)	7	Beltsville	312,846	$	4,012	89.8	%	89.8	%
Gateway 270 West	6	Clarksburg	252,295	3,036		90.4	%	83.1	%
Rumsey Center(3)	4	Columbia	135,015	1,502		100.0	%	100.0	%
Snowden Center	5	Columbia	145,267	2,302		100.0	%	100.0	%
Total Business Park	22		845,423	10,852		93.4	%	91.2	%
Office
Annapolis Business Center	2	Annapolis	101,113	1,999		100.0	%	100.0	%
Metro Park North	4	Rockville	191,211	2,845		87.3	%	87.3	%
Cloverleaf Center	4	Germantown	173,721	2,030		73.0	%	73.0	%
Hillside I and II(4)	2	Columbia	64,305	879		88.5	%	71.5	%
TenThreeTwenty	1	Columbia	138,854	2,056		97.2	%	94.1	%
Redland Corporate Center	3	Rockville	483,162	12,095		100.0	%	100.0	%
Total Office	16		1,152,366	21,904		92.8	%	91.5	%
Total Consolidated	38		1,997,789	32,756		93.1	%	91.4	%
Unconsolidated Joint Ventures
Aviation Business Park	3	Glen Burnie	120,285	1,302		69.8	%	68.0	%
RiversPark I and II	6	Columbia	307,984	3,933		88.6	%	84.2	%
Total Joint Ventures	9		428,269	5,235		83.4	%	79.6	%
Region Total/Weighted Average	47		2,426,058	$	37,991	91.3	%	89.3	%

⁽¹⁾  Annualized cash basis rent, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full-service leases. The operating expense reimbursements primarily relate to real estate taxes and insurance expenses. Includes leased spaces that are not yet occupied.

⁽²⁾  Ammendale Business Park consists of the following properties: Ammendale Commerce Center and Indian Creek Court.

⁽³⁾  On July 28, 2015, we sold Rumsey Center for net proceeds of $15.0 million.

⁽⁴⁾  Excludes 21,922 square feet of space that was placed into redevelopment during the first quarter of 2014.

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NORTHERN VIRGINIA REGION

Property	Buildings	Location	Square Feet	Annualized Cash Basis Rent(1)		Leased at June 30, 2015		Occupied at June 30, 2015
Business Park
Gateway Centre Manassas	3	Manassas	102,446	$	785	79.0	%	79.0	%
Linden Business Center	3	Manassas	109,809	810		78.4	%	78.4	%
Prosperity Business Center	1	Merrifield	71,373	806		92.5	%	92.5	%
Sterling Park Business Center(2)	7	Sterling	471,835	4,549		97.1	%	97.1	%
Total Business Park	14		755,463	6,950		91.5	%	91.5	%
Office
Atlantic Corporate Park	2	Sterling	218,793	3,308		82.9	%	81.6	%
Cedar Hill	2	Tysons Corner	102,632	2,249		100.0	%	100.0	%
Enterprise Center	4	Chantilly	188,933	2,100		66.7	%	66.7	%
Herndon Corporate Center	4	Herndon	128,359	1,322		68.7	%	68.7	%
One Fair Oaks	1	Fairfax	214,214	5,563		100.0	%	100.0	%
Reston Business Campus	4	Reston	82,378	932		78.9	%	66.1	%
Three Flint Hill	1	Oakton	180,819	3,507		96.3	%	96.3	%
Van Buren Office Park	5	Herndon	106,683	1,067		82.2	%	66.8	%
1775 Wiehle Avenue	1	Reston	130,048	2,916		100.0	%	100.0	%
Windsor at Battlefield	2	Manassas	155,511	1,680		79.9	%	79.9	%
Total Office	26		1,508,370	24,644		85.8	%	83.8	%
Industrial
Newington Business Park Center	7	Lorton	255,600	2,362		83.9	%	83.9	%
Plaza 500	2	Alexandria	500,955	4,756		87.7	%	87.7	%
Total Industrial	9		756,555	7,118		86.4	%	86.4	%
Total Consolidated	49		3,020,388	38,712		87.4	%	86.4	%
Development
Northern Virginia land(3)	—		—	—
Unconsolidated Joint Venture
Prosperity Metro Plaza	2	Merrifield	326,573	7,320		97.8	%	90.5	%
Region Total/Weighted Average	51		3,346,961	$	46,032	88.4	%	86.8	%

⁽¹⁾  Annualized cash basis rent, which is calculated as the contractual rent due under the terms of the leases, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full-service leases. The operating expense reimbursements primarily relate to real estate taxes and insurance expenses. Includes leased spaces that are not yet occupied.

⁽²⁾  Sterling Park Business Center consists of the following properties: 403/405 Glenn Drive, Davis Drive and Sterling Park Business Center.

⁽³⁾  During the third quarter of 2014, we signed a lease for 167,000 square feet at a to-be-constructed building in Northern Virginia on vacant land that we have in our portfolio. We currently expect to complete construction of the new building in the fourth quarter of 2016. However, we can provide no assurance regarding the timing, costs or results of the project.

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SOUTHERN VIRGINIA REGION

Property	Buildings	Location	Square Feet	Annualized Cash Basis Rent(1)		Leased at June 30, 2015		Occupied at June 30, 2015
Business Park
Battlefield Corporate Center	1	Chesapeake	96,720	$	828	100.0	%	100.0	%
Crossways Commerce Center(2)	9	Chesapeake	1,082,748	11,594		96.1	%	96.1	%
Greenbrier Business Park(3)	4	Chesapeake	411,180	4,213		90.4	%	80.1	%
Norfolk Commerce Park(4)	3	Norfolk	261,558	2,640		96.1	%	93.7	%
Total Business Park	17		1,852,206	19,275		95.0	%	92.4	%
Office
Greenbrier Towers	2	Chesapeake	171,721	1,715		81.8	%	76.6	%
Region Total/Weighted Average	19		2,023,927	$	20,990	93.9	%	91.1	%

⁽¹⁾  Annualized cash basis rent, which is calculated as the contractual rent due under the terms of the leases, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full-service leases. The operating expense reimbursements primarily relate to real estate taxes and insurance expenses. Includes leased spaces that are not yet occupied.

⁽²⁾  Crossways Commerce Center consists of the following properties: Coast Guard Building, Crossways Commerce Center I, Crossways Commerce Center II, Crossways Commerce Center IV and 1434 Crossways Boulevard.

⁽³⁾  Greenbrier Business Park consists of the following properties: Greenbrier Technology Center I, Greenbrier Technology Center II and Greenbrier Circle Corporate Center.

⁽⁴⁾  Norfolk Commerce Park consists of the following properties: Norfolk Business Center, Norfolk Commerce Park II and Gateway II.

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Development and Redevelopment Activity

We will place completed development and redevelopment assets in service upon the earlier of one year after major construction activity is deemed to be substantially complete or upon occupancy. We construct office buildings and/or business parks on a build-to-suit basis or with the intent to lease upon completion of construction. We own developable land that can accommodate 1.3 million square feet of additional building space, of which, 0.7 million is located in the Washington, D.C. reporting segment, 0.1 million in the Maryland reporting segment, 0.4 million in the Northern Virginia reporting segment and 0.1 million in the Southern Virginia reporting segment.

During the third quarter of 2014, we signed a lease for 167,000 square feet at a to-be-constructed building in our Northern Virginia reporting segment on vacant land that we have in our portfolio. We currently anticipate investing approximately $36 million to construct the new building, which excludes approximately $11 million of tenant improvements and approximately $2 million of combined leasing commissions and capitalized interest costs. We currently expect to complete construction of the new building in the fourth quarter of 2016. However, we can provide no assurance regarding the timing, cost or results of the project. At June 30, 2015, our total investment in the development project was $16.4 million, which included the original cost basis of the applicable portion of the vacant land of $5.2 million. The majority of the costs incurred as of June 30, 2015 in excess of the original cost basis of the land relate to design and permit fees, site preparation costs, foundation work and beginning the superstructure.

On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment. At the time, the site was leased to Greyhound Lines, Inc. (“Greyhound”), which subsequently relocated its operations. Greyhound’s lease expired on August 31, 2013, at which time the property was placed into development. The joint venture anticipates developing a mixed-use project on the 1.6 acre site, which can accommodate up to 712,000 square feet. At June 30, 2015, our total investment in the development project was $56.7 million, which included the original cost basis of the property of $43.3 million. The majority of the costs in excess of the original cost basis relate to capitalized architectural fees and site preparation costs. We are currently exploring our options related to this property; however, until a definitive plan for the property has been reached and we begin significant development activities, we cannot determine the total cost of the project or the anticipated completion date.

On December 28, 2010, we acquired 440 First Street, NW, a vacant eight-story office building in our Washington, D.C. reporting segment. In October 2013, we substantially completed the redevelopment of the 139,000 square foot property. At June 30, 2015, the property was 65.7% leased and 50.1% occupied. During the fourth quarter of 2014, all vacant space at the property was placed in service. At June 30, 2015, our total investment in the redevelopment project was $55.5 million, which included the original cost basis of the property of $23.6 million.

During the second quarter of 2015, we did not place in-service any completed development or redevelopment space. At June 30, 2015, we had no completed development or redevelopment space that have yet to be placed in service.

Lease Expirations

Approximately 2.3% of our annualized cash basis rent, excluding month-to-month leases (which represent an immaterial percentage of our annualized cash basis rent), is scheduled to expire during the remainder of 2015. We expect replacement rents on leases expiring during the remainder of 2015 to decrease on a cash basis relative to the current rental rates being paid by tenants. Current tenants are not obligated to renew their leases upon the expiration of their terms. If non-renewals or terminations occur, we may not be able to locate qualified replacement tenants and, as a result, could lose a significant source of revenue while remaining responsible for the payment of our financial obligations. Moreover, the terms of a renewal or new lease, including the amount of rent, may be less favorable to us than the current lease terms, or we may be forced to provide tenant improvements at our expense or provide other concessions or additional services to maintain or attract tenants. We continually strive to increase our portfolio occupancy, and the amount of vacant space in our portfolio at any given time may impact our willingness to reduce rental rates or provide greater concessions to retain existing tenants and attract new tenants. We continually monitor our portfolio on a regional and per property basis to assess market trends, including vacancy, comparable deals and transactions, and other business and economic factors that may influence our leasing decisions. Prior to signing a lease with a tenant, we generally assess the prospective tenant’s credit quality through review of its financial statements and tax returns, and the result of that review is a factor in establishing the rent to be charged and/or level of security deposit required. Over the course of our leases, we monitor our tenants to stay aware of any material changes in credit quality. The metrics we use to evaluate a significant tenant’s liquidity and creditworthiness depend on facts and circumstances specific to that tenant and to the industry in which it operates and include the tenant’s credit history and economic conditions related to the tenant, its operations and the markets in which it operates.  These factors may change over time. In addition, our property management personnel have regular contact with tenants and tenant employees and, where the terms of the lease permit and we deem it prudent, we may request tenant financial information for periodic review, review publicly-available financial statements in the case of public company tenants and monitor news and rating

37

agency reports regarding our tenants (or their parent companies) and their underlying businesses. In addition, we regularly analyze account receivable balances as part of the ongoing monitoring of the timeliness of rent collections from tenants.

During the second quarter of 2015, we had a tenant retention rate of 49%. After reflecting all the renewal leases on a triple-net basis to allow for comparability, the weighted average rental rate of our renewed leases increased 1.3% for the three months ended June 30, 2015 and decreased 3.7% for the six months ended June 30, 2015, compared with the expiring leases on a U.S. generally accepted accounting principles (“GAAP”) basis. During the second quarter of 2015, we executed new leases for 92,000 square feet, the majority of the new leases (based on square footage) contained rent escalations.

The following table sets forth tenant improvement and leasing commission costs on a rentable square foot basis for all new and renewal leases signed during the six months ended June 30, 2015:

	New	Renewal
Tenant improvements (per rentable square foot)	$26.91	$4.77
Leasing commissions (per rentable square foot)	$8.39	$1.94

The following table sets forth a summary schedule of the lease expirations at our consolidated properties for leases in place as of June 30, 2015 (dollars in thousands, except per square foot data):

Year of Lease Expiration(1)	Number of Leases Expiring	Leased Square Feet	% of Leased Square Feet		Annualized Cash Basis Rent(2)		% of Annualized Cash Basis Rent		Average Base Rent per Square Foot(2)(3)
MTM	3	12,171	0.2	%	$	218	0.2	%	$	17.95
2015	19	153,060	2.1	%	2,720		2.3	%	17.77
2016	69	558,331	7.7	%	11,305		9.5	%	20.25
2017	88	1,061,371	14.7	%	18,076		15.1	%	17.03
2018	85	913,939	12.6	%	13,541		11.3	%	14.82
2019	68	946,776	13.1	%	13,179		11.0	%	13.92
2020	73	1,172,655	16.2	%	17,037		14.3	%	14.53
2021	30	333,180	4.6	%	4,404		3.7	%	13.22
2022	31	346,765	4.8	%	5,092		4.3	%	14.68
2023	18	561,004	7.8	%	12,264		10.3	%	21.86
2024	23	589,210	8.1	%	10,252		8.6	%	17.40
Thereafter	46	588,507	8.1	%	11,379		9.4	%	19.33
Total / Weighted Average	553	7,236,969	100.0	%	$	119,467	100.0	%	$	16.51

⁽¹⁾  We classify leases that expired or were terminated on the last day of the quarter as leased square footage since the tenant is contractually entitled to the space.

⁽²⁾  Annualized Cash Basis Rent, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full-service leases. The operating expense reimbursements primarily relate to real estate taxes and insurance expenses. Includes leased spaces that are not yet occupied.

⁽³⁾  Represents annualized cash basis rent at June 30, 2015, divided by the square footage of the expiring leases.

Critical Accounting Policies

Our consolidated financial statements are prepared in accordance with GAAP that require us to make certain estimates and assumptions. Critical accounting policies and estimates are those that require subjective or complex judgments and are the policies and estimates that we deem most important to the portrayal of our financial condition, results of operations and cash flows. It is possible that the use of different reasonable estimates or assumptions in making these judgments could result in materially different amounts being reported in our consolidated financial statements. Our critical accounting policies and estimates relate to revenue recognition, including evaluation of the collectability of accounts and notes receivable, impairment of long-lived assets, purchase accounting for acquisitions of rental property, derivative instruments and share-based compensation.

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The following is a summary of certain aspects of these critical accounting policies and estimates.

Revenue Recognition

We generate substantially all of our revenue from leases on our properties. We recognize rental revenue on a straight-line basis over the terms of our leases, which includes fixed-rate renewal periods leased at below market rates at acquisition or inception. Accrued straight-line rents represent the difference between rental revenue recognized on a straight-line basis over the term of the respective lease agreements and the rental payments contractually due for leases that contain abatement or fixed periodic increases. We consider current information, credit quality, historical trends, economic conditions and other events regarding the tenants’ ability to pay their obligations in determining if amounts due from tenants, including accrued straight-line rents, are ultimately collectible. The uncollectible portion of the amounts due from tenants, including accrued straight-line rents, is charged to property operating expense in the period in which the determination is made.

Tenant leases generally contain provisions under which the tenants reimburse us for a portion of property operating expenses and real estate taxes incurred by us. Such reimbursements are recognized in the period in which the expenses are incurred. We record a provision for losses on estimated uncollectible accounts receivable based on our analysis of risk of loss on specific accounts. Lease termination fees are recognized on the date of termination when the related lease or portion thereof is cancelled, the collectability of the fee is reasonably assured and we have possession of the terminated space.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of ASU 2014-09 from January 1, 2017 to January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements or related disclosures.

Accounts and Notes Receivable

We must make estimates of the collectability of our accounts and notes receivable related to minimum rent, deferred rent, tenant reimbursements, lease termination fees and interest and other income. We specifically analyze accounts receivable and historical bad debt experience, tenant concentrations, tenant creditworthiness and current economic trends when evaluating the adequacy of our allowance for doubtful accounts receivable. These estimates have a direct impact on our net income as a higher required allowance for doubtful accounts receivable will result in lower net income. The uncollectible portion of the amounts due from tenants, including straight-line rents, is charged to property operating expense in the period in which the determination is made. We consider similar criteria in assessing impairment associated with outstanding loans or notes receivable and whether any allowance for anticipated credit loss is appropriate.

Investments in Rental Property and Rental Property Entities

Rental property is initially recorded at fair value, when acquired in a business combination, or initial cost when constructed or acquired in an asset purchase. Improvements and replacements are capitalized at cost when they extend the useful life, increase capacity or improve the efficiency of the asset. Repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of our assets, by class, are as follows:

Buildings	39 years
Building improvements	5 to 20 years
Furniture, fixtures and equipment	5 to 15 years
Lease related intangible assets	The term of the related lease
Tenant improvements	Shorter of the useful life of the asset or the term of the related lease

We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of the carrying value of a property, an impairment analysis is performed. We assess potential impairments based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the property’s use and eventual disposition. This estimate is based on projections of future revenues, expenses, capital improvement costs to maintain

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the operating capacity, expected holding periods and capitalization rates. These cash flows consider factors such as expected market trends and leasing prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a real estate investment based on forecasted undiscounted cash flows, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. Further, we will record an impairment loss if we expect to dispose of a property in the near term, at a price below carrying value. In such an event, we will record an impairment loss based on the difference between a property’s carrying value and its projected sales price less any estimated costs to sell.

We will classify a building as held-for-sale in accordance with GAAP in the period in which we have made the decision to dispose of the building, our Board of Trustees or a designated delegate has approved the sale, there is a high likelihood a binding agreement to purchase the property will be signed under which the buyer will be required to commit a significant amount of nonrefundable cash and no significant financing contingencies exist that could cause the transaction not to be completed in a timely manner. We will cease recording depreciation on a building once it has been classified as held-for-sale. In the second quarter of 2014, we prospectively adopted ASU 2014-08, which impacts the presentation of operations and gains or losses from disposed properties and properties classified as held-for-sale.

If the building does not qualify as a discontinued operation under ASU 2014-08 we will classify the building’s operating results, together with any impairment charges and any gains or losses on the sale of the building, in continuing operations for all periods presented in our consolidated statements of operations. We will classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheet for the period the held-for-sale criteria were met.

If the building does qualify as a discontinued operation under ASU 2014-08, we will classify the building’s operating results, together with any impairment charges and any gains or losses on the sale of the building, in discontinued operations in our consolidated statements of operations for all periods presented and classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheets for the periods presented. Interest expense is reclassified to discontinued operations only to the extent the disposed or held-for-sale property is secured by specific mortgage debt and the mortgage debt will not be assigned to another property owned by us after the disposition.

We recognize the fair value, if sufficient information exists to reasonably estimate the fair value, of any liability for conditional asset retirement obligations when assumed or incurred, which is generally upon acquisition, construction, development or redevelopment and/or through the normal operation of the asset.

We capitalize interest costs incurred on qualifying expenditures for real estate assets under development or redevelopment, which include our investments in assets owned through unconsolidated joint ventures that are under development or redevelopment, while being readied for their intended use in accordance with accounting requirements regarding capitalization of interest. We will capitalize interest when qualifying expenditures for the asset have been made, activities necessary to get the asset ready for its intended use are in progress and interest costs are being incurred. Capitalized interest also includes interest associated with expenditures incurred to acquire developable land while development activities are in progress. We also capitalize direct compensation costs of our construction personnel who manage the development and redevelopment projects, but only to the extent the employee’s time can be allocated to a project. Any portion of construction management costs not directly attributable to a specific project are recognized as general and administrative expense in the period incurred. We do not capitalize any other general and administrative costs such as office supplies, office rent expense or an overhead allocation to our development or redevelopment projects. Capitalized compensation costs were immaterial during the three months ended June 30, 2015 and 2014. Capitalization of interest ends when the asset is substantially complete and ready for its intended use, but no later than one year from completion of major construction activity, if the property is not occupied. We place redevelopment and development assets into service at this time and commence depreciation upon the substantial completion of tenant improvements and the recognition of revenue. Capitalized interest is depreciated over the useful life of the underlying assets, commencing when those assets are placed into service.

Purchase Accounting

Acquisitions of rental property, including any associated intangible assets, are measured at fair value at the date of acquisition. Any liabilities assumed or incurred are recorded at their fair value at the time of acquisition. The fair value of the acquired property is allocated between land and building (on an as-if vacant basis) based on management’s estimate of the fair value of those components for each type of property and to tenant improvements based on the depreciated replacement cost of the tenant improvements, which approximates their fair value. The fair value of the in-place leases is recorded as follows:

• the fair value of leases in-place on the date of acquisition is based on absorption costs for the estimated lease-up period

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in which vacancy and foregone revenue are avoided due to the presence of the acquired leases;

• the fair value of above and below-market in-place leases based on the present value (using a discount rate that reflects the risks associated with the acquired leases) of the difference between the contractual rent amounts to be paid under the assumed lease and the estimated market lease rates for the corresponding spaces over the remaining non-cancelable terms of the related leases, which range from one to fourteen years; and

• the fair value of intangible tenant or customer relationships.

Our determination of these fair values requires us to estimate market rents for each of the leases and make certain other assumptions. These estimates and assumptions affect the rental revenue, and depreciation and amortization expense recognized for these leases and associated intangible assets and liabilities.

Derivative Instruments

We are exposed to certain risks arising from business operations and economic factors. We use derivative financial instruments to manage exposures that arise from business activities in which our future exposure to interest rate fluctuations is unknown. The objective in the use of an interest rate derivative is to add stability to interest expenses and manage exposure to interest rate changes. We do not use derivatives for trading or speculative purposes and we intend to enter into derivative agreements only with counterparties that we believe have a strong credit rating to mitigate the risk of counterparty default or insolvency. No hedging activity can completely insulate us from the risks associated with changes in interest rates. Moreover, interest rate hedging could fail to protect us or adversely affect us because, among other things:

• available interest rate hedging may not correspond directly with the interest rate risk for which we seek protection;

• the duration of the hedge may not match the duration of the related liability;

• the party owing money in the hedging transaction may default on its obligation to pay; and

• the credit quality of the party owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign its side of the hedging transaction.

We may designate a derivative as either a hedge of the cash flows from a debt instrument or anticipated transaction (cash flow hedge) or a hedge of the fair value of a debt instrument (fair value hedge). All derivatives are recognized as assets or liabilities at fair value. For effective hedging relationships, the effective portion of the change in the fair value of the assets or liabilities is recorded within equity (cash flow hedge) or through earnings (fair value hedge). Ineffective portions of derivative transactions will result in changes in fair value recognized in earnings. For a cash flow hedge, we record our proportionate share of unrealized gains or losses on our derivative instruments associated with our unconsolidated joint ventures within equity and “Investment in affiliates.” We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual inputs and guarantees.

Share-Based Payments

We measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. For options awards, we use a Black-Scholes option-pricing model. Expected volatility is based on an assessment of our realized volatility over the preceding period that is equivalent to the award’s expected life. The expected term represents the period of time the options are anticipated to remain outstanding as well as our historical experience for groupings of employees that have similar behavior and considered separately for valuation purposes. For non-vested share awards that vest over a predetermined time period, we use the outstanding share price at the date of issuance to fair value the awards. For non-vested shares awards that vest based on performance conditions, we use a Monte Carlo simulation (risk-neutral approach) to determine the value and derived service period of each tranche. The expense associated with the share-based awards will be recognized over the period during which an employee is required to provide services in exchange for the award - the requisite service period (usually the vesting period). The fair value for all share-based payment transactions are recognized as a component of income or loss from continuing operations.

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Results of Operations

Comparison of the Three and Six Months Ended June 30, 2015with the Three and Six Months Ended June 30, 2014

The term “Comparable Portfolio” refers to all consolidated properties owned by us and in-service, with operating results reflected in our continuing operations, for the entirety of the periods presented. The Comparable Portfolio includes Rumsey Center, which was classified as held-for-sale at June 30, 2015 and was subsequently sold on July 28, 2015. The operating results of Rumsey Center are reflected in continuing operations in our consolidated statements of operations for the entirety of the periods presented.

The term “Non-Comparable Properties” refers to properties that we have acquired, sold, placed in-service, or placed in development or redevelopment during the periods presented. The Non-Comparable Properties are comprised of the following properties:

• 11 Dupont Circle, NW, 1775 Wiehle Avenue and 1401 K Street, NW, which were all acquired subsequent to the first quarter of 2014 for an aggregate purchase price of $188.0 million. We did not acquire any properties during the six months ended June 30, 2015. For the Results of Operations discussion below, these three properties will collectively be referred to as the “Acquired Properties”.

• Corporate Campus at Ashburn Center and Owings Mills Business Park, which were both sold subsequent to our adoption of ASU 2014-08 in the second quarter of 2014. In accordance with ASU 2014-08, the operating results of Corporate Campus at Ashburn Center and Owings Mills Business Park are reflected in continuing operations in our consolidated statements of operations for the three and six months ended June 30, 2014. For the Results of Operations discussion below, these two properties will collectively be referred to as the “Disposed Properties”.

• 440 First Street, NW, which was fully placed in service in October 2014. The redevelopment of 440 First Street, NW was substantially completed in October 2013.

• Storey Park, which has remained in development for the entirety of the periods presented.

The operating results for our Richmond Portfolio, which was sold during the first quarter of 2015, as well as the properties disposed of in 2014 (excluding Corporate Campus at Ashburn Center and Owings Mills Business Park, which have operating results reflected within continuing operations) are reflected as discontinued operations for the periods presented.

For discussion of the operating results of our reporting segments, the terms “Washington, D.C.”, “Maryland”, “Northern Virginia” and “Southern Virginia” will be used to describe the respective reporting segments.

Due to the timing of acquisitions and dispositions during the remainder of 2015, which may or may not occur, we cannot determine if property operating revenues or expenses will increase or decrease during 2015 compared with 2014.

In the tables below, the designation “NM” is used to refer to a percentage that is not meaningful.

Total Revenues

Total revenues are summarized as follows:

									Three Months				Six Months
	Three Months Ended June 30,				Six Months Ended June 30,						Percent				Percent
(dollars in thousands)	2015		2014		2015		2014		Change		Change		Change		Change
Rental	$	34,844	$	31,619	$	69,224	$	62,052	$	3,225	10	%	$	7,172	12	%
Tenant reimbursements and other	$	8,195	$	7,688	$	17,664	$	16,619	$	507	7	%	$	1,045	6	%

Rental Revenue

Rental revenue is comprised of contractual rent, the impact of straight-line revenue and the amortization of deferred market rent assets and liabilities representing above and below market rate leases at acquisition. Rental revenue increased $3.2 million and $7.2 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 as the Non-Comparable Properties contributed additional revenue of $2.5 million and $6.0 million, respectively, and the Comparable

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Portfolio contributed additional revenue of $0.7 million and $1.2 million, respectively. The increase in rental revenue from the Non-Comparable Properties for the three and six months ended June 30, 2015 was comprised of an increase of $2.9 million and $7.1 million, respectively, from the Acquired Properties and an increase of $0.6 million and $1.0 million, respectively, from 440 First Street, NW, which was partially offset by a decrease in rental revenue from the Disposed Properties of $1.0 million and $2.1 million for the three and six months ended June 30, 2015, respectively. The increase in rental revenue from the Comparable Portfolio was due to an increase in occupancy in the Comparable Portfolio. The weighted average occupancy of the Comparable Portfolio was 89.0% and 88.8% for the three and six months ended June 30, 2015, respectively, compared with 87.3% and 87.2%, respectively, for the same periods in 2014.

The increase in rental revenue for the three and six months ended June 30, 2015 compared with the same periods in 2014 includes $3.0 million and $6.7 million, respectively, for Washington, D.C., $0.3 million and $0.8 million, respectively, for Northern Virginia and $0.2 million and $0.1 million, respectively, for Southern Virginia. Rental revenue for Maryland decreased $0.3 million and $0.4 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014.

Tenant Reimbursements and Other Revenues

Tenant reimbursements and other revenues include operating and common area maintenance costs reimbursed by our tenants as well as other incidental revenues such as lease termination payments, parking revenue and joint venture and construction related management fees. Tenant reimbursements and other revenues increased $0.5 million and $1.0 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014. The increase in tenant reimbursements and other revenues was primarily due to the Comparable Portfolio, which contributed an additional $0.4 million and $0.8 million for the three and six months ended June 30, 2015, respectively, due to recovering a higher percentage of operating expenses as a result of higher occupancy. The Non-Comparable Properties contributed an increase in tenant reimbursements and other revenues of $0.1 million and $0.2 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014. The increase in tenant reimbursements and other revenues from the Non-Comparable Properties was comprised of an increase of $0.4 million and $0.9 million for the three and six months ended June 30, 2015, respectively, from the Acquired Properties, which was partially offset by a decrease of $0.3 million and $0.7 million for the three and six months ended June 30, 2015, respectively, from the Disposed Properties.

The increase in tenant reimbursements and other revenues for the three and six months ended June 30, 2015 compared with the same periods in 2014 includes $0.3 million and $0.8 million, respectively, for Washington, D.C., $0.1 million and $0.2 million, respectively, for Maryland and $0.3 million and $0.2 million, respectively, for Northern Virginia. Tenant reimbursements and other revenues for Southern Virginia decreased $0.2 million for both the three and six months ended June 30, 2015 and 2014.

Total Expenses

Property Operating Expenses

Property operating expenses are summarized as follows:

									Three Months				Six Months
	Three Months Ended June 30,				Six Months Ended June 30,						Percent				Percent
(dollars in thousands)	2015		2014		2015		2014		Change		Change		Change		Change
Property operating	$	10,661	$	10,224	$	23,775	$	22,261	$	437	4	%	$	1,514	7	%
Real estate taxes and insurance	$	4,811	$	4,241	$	9,854	$	8,373	$	570	13	%	$	1,481	18	%

Property operating expenses increased $0.4 million and $1.5 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to the Non-Comparable Properties, which contributed additional property operating expenses of $0.6 million and $1.7 million for the three and six months ended June 30, 2015, respectively. The increase in property operating expenses from the Non-Comparable Properties for the three and six months ended June 30, 2015 was comprised of an increase of $0.7 million and $2.1 million, respectively, from the Acquired Properties and an increase of $0.1 million and $0.2 million, respectively, from 440 First Street, NW and Storey Park, which increases were partially offset by a decrease of $0.2 million and $0.6 million from the Disposed Properties for the three and six months ended June 30, 2015, respectively. Property operating expenses for the Comparable Portfolio decreased $0.2 million for both the three and six months ended June 30, 2015 compared with the same periods in 2014.

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The increase in property operating expenses for the three and six months ended June 30, 2015 compared with the same periods in 2014 includes $0.5 million and $1.7 million, respectively, for Washington, D.C., $0.2 million and $0.3 million, respectively, for Maryland and $0.1 million and $0.2 million, respectively, for Northern Virginia. Property operating expenses for Southern Virginia decreased $0.4 million and $0.7 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014.

Real estate taxes and insurance expense increased $0.6 million and $1.5 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to the Non-Comparable Properties, which contributed additional real estate taxes and insurance expense of $0.7 million and $1.5 million for the three and six months ended June 30, 2015, respectively. The increase in real estate taxes and insurance from the Non-Comparable Properties was comprised of an increase of $0.5 million and $1.2 million for the three and six months ended June 30, 2015, respectively, from the Acquired Properties and an increase of $0.3 million and $0.6 million for the three and six months ended June 30, 2015, respectively, from 440 First Street, NW, which was partially offset by a decrease of $0.1 million and $0.3 million, respectively, from the Disposed Properties. Real estate taxes and insurance expense for the Comparable Portfolio decreased $0.1 million for the three months ended June 30, 2015 compared with the same period in 2014 and slightly decreased for the six months ended June 30, 2015 compared with the same period in 2014.

The increase in real estate taxes and insurance expense for the three and six months ended June 30, 2015 compared with the same periods in 2014 includes $0.7 million and $1.7 million, respectively, for Washington, D.C. and $0.1 million for both periods for Southern Virginia. Property operating expenses for Maryland decreased $0.1 million and $0.2 million for the three and six months ended June 30, 2015, respectively, and $0.1 million during both periods for Northern Virginia.

Other Operating Expenses

General and administrative expenses are summarized as follows:

									Three Months					Six Months
	Three Months Ended June 30,				Six Months Ended June 30,							Percent				Percent
(dollars in thousands)	2015		2014		2015		2014		Change			Change		Change		Change
	$	4,979	$	5,218	$	10,505	$	10,414	$	(239	)	(5	)%	$	91	1	%

General and administrative expenses decreased $0.2 million for the three months ended June 30, 2015 compared with the same period in 2014 and increased $0.1 million for the six months ended June 30, 2015 compared with the same period in 2014. The decrease in general and administrative expenses for the three months ended June 30, 2015 was primarily due to a reduction in employee compensation costs and costs incurred in the second quarter of 2014 associated with the employment of our Chief Operating Officer. The increase in general and administrative expenses for the six months ended June 30, 2015 was primarily due to personnel separation costs of $0.4 million incurred during the first quarter of 2015 as a result of moving to a more vertically integrated management structure. The increase in general and administrative expenses was partially offset by a decrease in non-cash, share-based compensation expense and placement fees for the six months ended June 30, 2015 compared with the same period in 2014. We currently anticipate that general and administrative expenses for the remainder of 2015 will be flat. However, as discussed in “Item 1A—Risk Factors” in our Annual Report on Form 10-K, the informal inquiry initiated by the SEC could result in increased legal and/or accounting fees in 2015.

Acquisition costs are summarized as follows:

									Three Months					Six Months
	Three Months Ended June 30,				Six Months Ended June 30,							Percent					Percent
(dollars in thousands)	2015		2014		2015		2014		Change			Change		Change			Change
	$	—	$	1,111	$	—	$	1,179	$	(1,111	)	(100	)%	$	(1,179	)	(100	)%

We did not acquire any properties during the six months ended June 30, 2015. During the second quarter of 2014, we acquired 1401 K Street, NW, a twelve-story, 117,000 square foot office building located in Washington D.C., for a contractual purchase price of $58.0 million and 1775 Wiehle Avenue, a five-story, 130,000 square foot office building located in Reston, Virginia for a contractual purchase price of $41.0 million.

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Depreciation and amortization expense is summarized as follows:

									Three Months				Six Months
	Three Months Ended June 30,				Six Months Ended June 30,						Percent				Percent
(dollars in thousands)	2015		2014		2015		2014		Change		Change		Change		Change
	$	16,817	$	14,829	$	33,151	$	29,139	$	1,988	13	%	$	4,012	14	%

Depreciation and amortization expense includes depreciation of rental property and the amortization of intangible assets and leasing commissions. Depreciation and amortization expense increased $2.0 million and $4.0 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014, primarily due to the Non-Comparable Properties, which contributed additional depreciation and amortization expense of $1.7 million and $4.3 million for the three and six months ended June 30, 2015, respectively. The increase in depreciation and amortization expense from the Non-Comparable Properties was comprised of an increase of $1.4 million and $3.8 million for the three and six months ended June 30, 2015, respectively, from the Acquired Properties and an increase of $0.7 million and $1.3 million, respectively, from 440 First Street, NW, which was partially offset by a decrease of $0.4 million and $0.8 million for the three and six months ended June 30, 2015, respectively, from the Disposed Properties. For the Comparable Portfolio, depreciation and amortization expense increased $0.3 million for the three months ended June 30, 2015 compared with the same period in 2014 and decreased $0.3 million for the six months ended June 30, 2015 compared with the same period in 2014. Due to the timing of acquisitions and dispositions in 2015, which may or may not occur for the remainder of 2015, we cannot determine if depreciation and amortization expense will continue to increase during 2015 compared with 2014.

Impairment of rental property is summarized as follows:

									Three Months					Six Months
	Three Months Ended June 30,				Six Months Ended June 30,							Percent					Percent
(dollars in thousands)	2015		2014		2015		2014		Change			Change		Change			Change
	$	—	$	3,956	$	—	$	3,956	$	(3,956	)	(100	)%	$	(3,956	)	(100	)%

In October 2014, we sold Owings Mills Business Park, a four-building business park located in our Maryland reporting segment. We recorded an impairment charge of $4.0 million on the four buildings at Owings Mills Business Park in the second quarter of 2014 based on the fair value of the property, less selling costs. We did not record any other impairment charges within continuing operations for the three and six months ended June 30, 2015 and 2014.

Other Expenses (Income)

Interest expense is summarized as follows:

									Three Months				Six Months
	Three Months Ended June 30,				Six Months Ended June 30,						Percent				Percent
(dollars in thousands)	2015		2014		2015		2014		Change		Change		Change		Change
	$	6,725	$	6,031	$	13,633	$	11,768	$	694	12	%	$	1,865	16	%

Interest expense increased $0.7 million and $1.9 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to an aggregate higher average outstanding balance and a higher weighted average interest rates on our unsecured revolving credit facility and unsecured term loan. For the three and six months ended June 30, 2015, our weighted average borrowings under both the unsecured revolving credit facility and the unsecured term loan totaled $449.4 million and $471.3 million, respectively, with a weighted average interest rate of 2.0% for both periods, compared with weighted average borrowings of $412.7 million and $404.9 million for the three and six months ended June 30, 2014, respectively, with a weighted average interest rate of 1.8% for both periods. The increase in interest expense for the three and six months ended June 30, 2015 compared with the same periods in 2014 was also attributable to a decrease of $0.5 million and $1.0 million, respectively, in capitalized interest expense, which was due to placing 440 First Street, NW in service in the fourth quarter of 2014. We anticipate interest expense will increase in 2015 compared with 2014 as a result of higher overall outstanding debt balances and lower capitalized interest expense.

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Interest and other income are summarized as follows:

									Three Months					Six Months
	Three Months Ended June 30,				Six Months Ended June 30,							Percent				Percent
(dollars in thousands)	2015		2014		2015		2014		Change			Change		Change		Change
	$	974	$	1,670	$	4,802	$	3,428	$	(696	)	(42	)%	$	1,374	40	%

On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan that had an outstanding balance of $29.7 million. We provided the owners of America’s Square a $30.0 million mezzanine loan in April 2011. We received a yield maintenance payment of $2.4 million with the prepayment of the loan, which is reflected within “Interest and other income” in our consolidated statements of operations.

We anticipate that interest and other income will remain relatively flat for the remainder of 2015 compared with 2014 as the yield maintenance payment of $2.4 million associated with the prepayment of the America's Square mezzanine loan in February 2015 will primarily offset the reduction in interest income as a result of the loan’s prepayment.

Equity in (earnings) losses of affiliates is summarized as follows:

										Three Months			Six Months
	Three Months Ended June 30,				Six Months Ended June 30,							Percent			Percent
(dollars in thousands)	2015		2014		2015		2014			Change		Change	Change		Change
	$	456	$	199	$	803	$	(28	)	$	257	NM	$	831	NM

Equity in (earnings) losses of affiliates reflects our aggregate ownership interest in the operating results of the properties in which we do not have a controlling interest.

The increase in income from our unconsolidated joint ventures for the three and six months ended June 30, 2015 compared with the same periods in 2014 was due to an increase in income from Prosperity Metro Plaza and 1750 H Street, NW, which was due to an increase in occupancy at both properties.

Gain on sale of rental property is summarized as follows:

									Three Months					Six Months
	Three Months Ended June 30,				Six Months Ended June 30,							Percent					Percent
(dollars in thousands)	2015		2014		2015		2014		Change			Change		Change			Change
	$	—	$	21,230	$	—	$	21,230	$	(21,230	)	(100	)%	$	(21,230	)	(100	)%

On June 26, 2014, we sold Corporate Campus at Ashburn Center, a three-building business park located in Ashburn, Virginia, for net proceeds of $39.9 million and reported a gain on the sale of the property of $21.2 million in the second quarter of 2014. We used the net proceeds from the sale, together with available cash, to acquire 1775 Wiehle Avenue. The operating results and gain on the sale of the Corporate Campus at Ashburn Center are reflected in continuing operations in our consolidated statements of operations for the three and six months ended June 30, 2014. We did not record any other gain on sale of rental property within continuing operations during the three and six months ended June 30, 2015 and 2014.

Income (Loss) from Discontinued Operations

Income (loss) from discontinued operations is summarized as follows:

										Three Months					Six Months
	Three Months Ended June 30,				Six Months Ended June 30,								Percent					Percent
(dollars in thousands)	2015		2014		2015			2014		Change			Change		Change			Change
	$	—	$	1,538	$	(607	)	$	681	$	(1,538	)	(100	)%	$	(1,288	)	NM

46

Discontinued operations for the periods presented reflect the Richmond Portfolio, which was classified within discontinued operations after our adoption of ASU 2014-08, due to our strategic shift away from the Richmond, Virginia market, as well as disposed properties that were previously classified as discontinued operations in previously filed consolidated financial statements prior to our adoption of ASU 2014-08. During the first quarter of 2015, we sold our Richmond, Virginia Portfolio, which included Chesterfield Business Center, Hanover Business Center, Park Central, Virginia Technology Center and a three-acre parcel of undeveloped land for net proceeds of $53.8 million. We recorded a gain on the sale of the portfolio of $0.9 million during the first quarter of 2015. During the first quarter of 2015, we accelerated the amortization of deferred rent abatements, straight-line rents and leasing commissions, which were recorded on the balance sheet of the Richmond Portfolio. The accelerated amortization resulted in an additional $2.0 million of expense during the six months ended June 30, 2015. As part of the sale of the Richmond Portfolio, we incurred $0.5 million of debt extinguishment charges related to debt that was encumbered by the sold properties.

During the first quarter of 2014, we sold a portfolio of properties that consisted of Girard Business Center and Gateway Center, which were both located in our Maryland reporting segment. We recorded a gain on the sale of the portfolio of $0.1 million during the first quarter of 2014. During the second quarter of 2014, we sold our Patrick Center and West Park properties, which were both located in our Maryland reporting segment, and recorded a net gain of $1.3 million in the second quarter of 2014. We have had, and will have, no continuing involvement with these properties subsequent to their disposal. For more information about our discontinued operations, see note 7 – Dispositions, in the notes to our condensed consolidated financial statements.

Net loss (income) attributable to noncontrolling interests

Net loss (income) attributable to noncontrolling interests is summarized as follows:

											Three Months			Six Months
	Three Months Ended June 30,					Six Months Ended June 30,							Percent			Percent
(dollars in thousands)	2015		2014			2015		2014			Change		Change	Change		Change
	$	114	$	(652	)	$	227	$	(458	)	$	766	NM	$	685	NM

Net loss (income) attributable to noncontrolling interests reflects the ownership interests in our net income or loss, less amounts owed to our preferred shareholders, attributable to parties other than us. We had net losses attributable to common shareholders of $2.5 million and $5.0 million for the three and six months ended June 30, 2015, respectively, and had net income attributable to common shareholders of $14.6 million and $10.2 million for the three and six months ended June 30, 2014, respectively. The weighted average percentage of the common Operating Partnership units held by third parties was 4.3% for both the three and six months ended June 30, 2015 and 2014.

At June 30, 2015, we consolidated the operating results of one joint venture and recognized our joint venture partner’s percentage of gains or losses within “Net loss (income) attributable to noncontrolling interests”. The joint venture partners’ aggregate share of earnings in the operating results of our consolidated joint ventures was immaterial during both the three and six months ended June 30, 2015 and 2014.

Same Property Net Operating Income

Same Property Net Operating Income (“Same Property NOI”), defined as operating revenues (rental, tenant reimbursements and other revenues) less operating expenses (property operating expenses, real estate taxes and insurance) from the properties whose period-over-period operations can be viewed on a comparative basis (i.e., those consolidated properties owned and in-service for the entirety of the periods presented), is a primary performance measure we use to assess the results of operations at our properties. Same Property NOI is a non-GAAP measure. As an indication of our operating performance, Same Property NOI should not be considered an alternative to net income calculated in accordance with GAAP. A reconciliation of our Same Property NOI to net income from our consolidated statements of operations is presented below. The Same Property NOI results exclude corporate-level expenses, as well as certain transactions, such as the collection of termination fees, as these items vary significantly period-over-period and thus impact trends and comparability. Also, we eliminate depreciation and amortization expense, which are property level expenses, in computing Same Property NOI because these are non-cash expenses that are based on historical cost accounting assumptions and management believes these expenses do not offer the investor significant insight into the operations of the property. This presentation allows management and investors to distinguish whether growth or declines in net operating income are a result of increases or decreases in property operations or the acquisition of additional properties. While this presentation provides useful information to management and investors, the results below should be read in conjunction with the results from the consolidated statements of operations to provide a complete depiction of total Company performance.

47

Comparison of the Three and Six Months Ended June 30, 2015 with the Three and Six Months Ended June 30, 2014

The following table of selected operating data provides the basis for our discussion of Same Property NOI for the periods presented:

CONSOLIDATED
	Three Months Ended   June 30,											Six Months Ended   June 30,
(dollars in thousands)	2015			2014			$ Change			% Change		2015			2014			$ Change			% Change
Number of buildings(1)	108			108			—			—		108			108			—			—
Same property revenues
Rental	$	29,797		$	29,038		$	759		2.6		$	59,321		$	58,120		$	1,201		2.1
Tenant reimbursements and other	7,487			7,020			467			6.7		16,222			15,327			895			5.8
Total same property revenues	37,284			36,058			1,226			3.4		75,543			73,447			2,096			2.9
Same property operating expenses
Property(2)	8,567			8,489			78			0.9		19,533			19,339			194			1.0
Real estate taxes and insurance	3,762			3,855			(93		)	(2.4	)	7,781			7,803			(22		)	(0.3	)
Total same property operating expenses	12,329			12,344			(15		)	(0.1	)	27,314			27,142			172			0.6
Same property net operating income	$	24,955		$	23,714		$	1,241		5.2		$	48,229		$	46,305		$	1,924		4.2
Reconciliation to net income:
Same property net operating income	$	24,955		$	23,714							$	48,229		$	46,305
Non-comparable net operating income	2,612			1,128								5,030			1,732
General and administrative expenses	(4,979		)	(5,218		)						(10,505		)	(10,414		)
Depreciation and amortization	(16,817		)	(14,829		)						(33,151		)	(29,139		)
Other(3)	(5,295		)	12,001								(8,028		)	7,727
Discontinued operations	—			1,538								(607		)	681
Net income	$	476		$	18,334							$	968		$	16,892

	Weighted Average Occupancy For the Three Months Ended June 30,				Weighted Average Occupancy For the Six Months Ended June 30,
	2015		2014		2015		2014
Same Properties	89.0	%	87.3	%	88.8	%	87.2	%

⁽¹⁾  Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the operating results of the following non-comparable properties: 440 First Street, NW, Storey Park, 1401 K Street, NW, 1775 Wiehle Avenue, and 11 Dupont Circle, NW.

⁽²⁾  Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes.

⁽³⁾  Combines acquisition costs, impairment of rental property and total other expenses (income) from our consolidated statements of operations.

Same Property NOI increased $1.2 million and $1.9 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014. Total same property revenues increased $1.2 million and $2.1 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014, primarily due to an increase in occupancy. Total same property operating expenses slightly decreased for the three months ended June 30, 2015 compared with the same period in 2014 due to a decrease in anticipated bad debt reserves. Total same property operating expenses increased $0.2 million for the six months ended June 30, 2015 compared with the same period in 2014 due to an increase in operating expenses related to higher occupancy.

48

Washington, D.C.
	Three Months Ended   June 30,							Six Months Ended   June 30,
(dollars in thousands)	2015		2014		$ Change		% Change	2015		2014		$ Change		% Change
Number of buildings(1)	3		3		—		—	3		3		—		—
Same property revenues
Rental	$	4,866	$	4,331	$	535	12.4	$	9,590	$	8,897	$	693	7.8
Tenant reimbursements and other	1,893		1,871		22		1.2	3,947		3,920		27		0.7
Total same property revenues	6,759		6,202		557		9.0	13,537		12,817		720		5.6
Same property operating expenses
Property(2)	1,537		1,441		96		6.7	3,254		3,011		243		8.1
Real estate taxes and insurance	1,036		1,030		6		0.6	2,162		2,054		108		5.3
Total same property operating expenses	2,573		2,471		102		4.1	5,416		5,065		351		6.9
Same property net operating income:	$	4,186	$	3,731	$	455	12.2	$	8,121	$	7,752	$	369	4.8
Reconciliation to total property operating income:
Same property net operating income	$	4,186	$	3,731				$	8,121	$	7,752
Non-comparable net operating income	2,025		442					3,960		321
Total property operating income	$	6,211	$	4,173				$	12,081	$	8,073

	Weighted Average Occupancy For the Three Months Ended June 30,				Weighted Average Occupancy For the Six Months Ended June 30,
	2015		2014		2015		2014
Same Properties	97.5	%	90.1	%	95.2	%	91.2	%

⁽¹⁾  Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the operating results of the following non-comparable properties: 440 First Street, NW, Storey Park, 1401 K Street, NW and 11 Dupont Circle, NW.

⁽²⁾  Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes.

Same Property NOI for the Washington, D.C. properties increased $0.5 million and $0.4 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014. For the three months ended June 30, 2015, total same property revenues increased $0.6 million compared with the same period in 2014 as a result of an increase in occupancy at both 1211 Connecticut Avenue, NW and 840 First Street, NE. For the six months ended June 30, 2015, total same property revenues increased $0.7 million compared with the same period in 2014 as a result of an increase in occupancy at 840 First Street, NE. Total same property operating expenses increased $0.1 million for the three months ended June 30, 2015 compared with the same period in 2014 due to increased service contract costs and utilities as a result of the increase in occupancy. Total same property operating expenses increased $0.4 million for the six months ended June 30, 2015 compared with the same period in 2014 due to an increase in real estate taxes, due to higher property assessments.

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Maryland
	Three Months Ended   June 30,									Six Months Ended   June 30,
(dollars in thousands)	2015		2014		$ Change			% Change		2015			2014		$ Change			% Change
Number of buildings(1)	38		38		—			—		38			38		—			—
Same property revenues
Rental	$	9,132	$	9,062	$	70		0.8		$	18,256		$	17,948	$	308		1.7
Tenant reimbursements and other	1,732		1,564		168			10.7		4,211			3,745		466			12.4
Total same property revenues	10,864		10,626		238			2.2		22,467			21,693		774			3.6
Same property operating expenses
Property(2)	2,486		2,131		355			16.7		6,306			5,706		600			10.5
Real estate taxes and insurance	896		918		(22		)	(2.4	)	1,788			1,865		(77		)	(4.1	)
Total same property operating expenses	3,382		3,049		333			10.9		8,094			7,571		523			6.9
Same property net operating income	$	7,482	$	7,577	$	(95	)	(1.3	)	$	14,373		$	14,122	$	251		1.8
Reconciliation to total property operating income:
Same property net operating income	$	7,482	$	7,577						$	14,373		$	14,122
Non-comparable net operating income (loss)	11		248							(85		)	399
Total property operating income	$	7,493	$	7,825						$	14,288		$	14,521

	Weighted Average Occupancy For the Three Months Ended June 30,				Weighted Average Occupancy For the Six Months Ended June 30,
	2015		2014		2015		2014
Same Properties	90.8	%	87.7	%	90.7	%	87.1	%

⁽¹⁾  Same property comparisons are based upon those consolidated properties owned or in-service for the entirety of the periods presented.

⁽²⁾  Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes.

Same Property NOI for the Maryland properties decreased $0.1 million for the three months ended June 30, 2015 compared with the same period in 2014 and increased $0.3 million for the six months ended June 30, 2015 compared with the same period in 2014. Total same property revenues increased $0.2 million and $0.8 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to an increase in occupancy. Total revenues also increased for the three months ended June 30, 2015 due to an increase in construction management fees. Total same property operating expenses increased $0.3 million and $0.5 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to an increase in bad debt reserves.

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Northern Virginia
	Three Months Ended   June 30,									Six Months Ended   June 30,
(dollars in thousands)	2015		2014		$ Change			% Change		2015		2014		$ Change			% Change
Number of buildings(1)	48		48		—			—		48		48		—			—
Same property revenues
Rental	$	9,824	$	9,875	$	(51	)	(0.5	)	$	19,692	$	19,576	$	116		0.6
Tenant reimbursements and other	2,686		2,332		354			15.2		5,741		5,225		516			9.9
Total same property revenues	12,510		12,207		303			2.5		25,433		24,801		632			2.5
Same property operating expenses
Property(2)	2,825		2,810		15			0.5		6,484		6,516		(32		)	(0.5	)
Real estate taxes and insurance	1,220		1,357		(137		)	(10.1	)	2,646		2,787		(141		)	(5.1	)
Total same property operating expenses	4,045		4,167		(122		)	(2.9	)	9,130		9,303		(173		)	(1.9	)
Same property net operating income	$	8,465	$	8,040	$	425		5.3		$	16,303	$	15,498	$	805		5.2
Reconciliation to total property operating income:
Same property net operating income	$	8,465	$	8,040						$	16,303	$	15,498
Non-comparable net operating income	699		534							1,361		1,243
Total property operating income	$	9,164	$	8,574						$	17,664	$	16,741

	Weighted Average Occupancy For the Three Months Ended June 30,				Weighted Average Occupancy For the Six Months Ended June 30,
	2015		2014		2015		2014
Same Properties	85.8	%	85.3	%	86.1	%	85.2	%

⁽¹⁾  Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the operating results of the following non-comparable properties: 1775 Wiehle Avenue.

⁽²⁾  Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes.

Same Property NOI for the Northern Virginia properties increased $0.4 million and $0.8 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014. Total same property revenues increased $0.3 million and $0.6 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to an increase in construction management fees and recoverable operating expenses. Total same property operating expenses decreased $0.1 million and $0.2 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due to a decrease in real estate taxes related to lower property assessments, and insurance expense.

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Southern Virginia
	Three Months Ended   June 30,											Six Months Ended   June 30,
(dollars in thousands)	2015			2014			$ Change			% Change		2015			2014			$ Change			% Change
Number of buildings(1)	19			19			—			—		19			19			—			—
Same property revenues
Rental	$	5,975		$	5,770		$	205		3.6		$	11,783		$	11,699		$	84		0.7
Tenant reimbursements and other	1,176			1,253			(77		)	(6.1	)	2,323			2,437			(114		)	(4.7	)
Total same property revenues	7,151			7,023			128			1.8		14,106			14,136			(30		)	(0.2	)
Same property operating expenses
Property(2)	1,719			2,107			(388		)	(18.4	)	3,489			4,106			(617		)	(15.0	)
Real estate taxes and insurance	610			550			60			10.9		1,185			1,097			88			8.0
Total same property operating expenses	2,329			2,657			(328		)	(12.3	)	4,674			5,203			(529		)	(10.2	)
Same property net operating income	$	4,822		$	4,366		$	456		10.4		$	9,432		$	8,933		$	499		5.6
Reconciliation to total property operating income:
Same property net operating income	$	4,822		$	4,366							$	9,432		$	8,933
Non-comparable net operating loss	(123		)	(96		)						(206		)	(231		)
Total property operating income	$	4,699		$	4,270							$	9,226		$	8,702

	Weighted Average Occupancy For the Three Months Ended June 30,				Weighted Average Occupancy For the Six Months Ended June 30,
	2015		2014		2015		2014
Same Properties	89.8	%	89.0	%	89.1	%	89.4	%

⁽¹⁾  Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented.

⁽²⁾  Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes.

Same Property NOI for the Southern Virginia properties increased $0.5 million for both the three and six months ended June 30, 2015 compared with the same periods in 2014. Total same property revenues increased $0.1 million for the three months ended June 30, 2015 compared with the same period in 2014 due to an increase in occupancy. Total same property revenues slightly decreased for the six months ended June 30, 2015 compared with the same period in 2014 due to a decrease in recoverable operating expenses. Total same property operating expenses decreased $0.3 million and $0.5 million for the three and six months ended June 30, 2015, respectively, compared with the same periods in 2014 due a decrease in anticipated bad debt reserves and parking lot and sidewalk repair costs. Total same property operating expenses also decreased for the six months ended June 30, 2015 due to a decrease in snow and ice removal costs in the first quarter of 2015 compared with the same period in 2014.

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Liquidity and Capital Resources

Overview

We seek to maintain a flexible balance sheet, with an appropriate balance of cash, debt, equity and available funds under our unsecured revolving credit facility, to readily provide access to capital given the volatility of the market and to position us to take advantage of potential growth opportunities. Consistent with our previously disclosed capital recycling strategy, we sold the Richmond Portfolio in the first quarter of 2015 for net proceeds of $53.8 million. Net proceeds from the sale reflected the prepayment of $3.7 million of mortgage and other indebtedness secured by the properties, including $0.5 million of associated prepayment penalties. The majority of the remaining net proceeds from the sale were used to repay $48.0 million of the outstanding balance under our unsecured revolving credit facility. On July 28, 2015, we sold Rumsey Center, a four-building, single-story business park totaling 135,000 square feet, which is located in Columbia, Maryland, for net proceeds of $15.0 million. We intend to use the net proceeds from the sale of Rumsey Center to fund potential repurchases of our common shares, to repay a portion of the outstanding balance of our unsecured revolving credit facility and/or for general corporate purposes.

In July 2015, our Board of Trustees authorized a share repurchase program that allows us to acquire up to five million of our common shares of beneficial interest from time to time over the next twelve months in open market transactions at prevailing prices or in negotiated private transactions. As of the date of this filing, we had 58.8 million common shares outstanding. We are not obligated to acquire any particular amount of common shares and the share repurchase program may be suspended by the Board of Trustees at any time.

In addition, after thorough evaluation and discussion with the Board or Trustees, we implemented a plan designed to improve performance and create shareholder value by commencing a process to accelerate the sale of at least $200 million of assets. We will explore the sale of certain development assets, as well as non-core assets and those assets where we feel we have maximized value. We intend to utilize the proceeds from dispositions to repurchase common shares under the our share repurchase program, redeem the Company’s 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, in whole or in part, beginning in late January 2016 and/or repay outstanding indebtedness.

We expect to meet short-term liquidity requirements generally through working capital, net cash provided by operations, and, if necessary, borrowings on our unsecured revolving credit facility. Our short-term obligations consist primarily of the lease for our corporate headquarters, normal recurring operating expenses, regular debt payments, recurring expenditures for corporate and administrative needs, non-recurring expenditures such as capital improvements, tenant improvements and redevelopments, leasing commissions and dividends to preferred and common shareholders.

At June 30, 2015, we had $152.0 million outstanding under our unsecured revolving credit facility. On July 21, 2015, we repaid $64.2 million of consolidated mortgage debt with a draw under our unsecured revolving credit facility. As of the date of this filing, we had $205.0 million outstanding and $92.0 million of availability under our unsecured revolving credit facility. In the next 12 months, we have a $32.2 million construction loan maturing, which has two one-year extension options at our discretion and has a borrowing capacity of up to $43.5 million. We can repay all or a portion of the construction loan, without penalty, at any time during the term of the loan.

Over the next twelve months, we believe that we will generate sufficient cash flow from operations and have access to the capital resources, through debt and equity markets, necessary to expand and develop our business, to fund our operating and administrative expenses, to continue to meet our debt service obligations and to pay distributions in accordance with REIT requirements. However, our cash flow from operations and ability to access the debt and equity markets could be adversely affected due to uncertain economic factors and volatility in the financial and credit markets. In particular, we cannot assure that our tenants will not default on their leases or fail to make full rental payments if their businesses are challenged due to, among other things, the economic conditions (particularly if the tenants are unable to secure financing to operate their businesses). This may be particularly true for our tenants that are smaller companies. Further, approximately 2.3% of our annualized cash basis rent (excluding month-to-month leases) is scheduled to expire during the next twelve months and, if we are unable to renew these leases or re-lease the space, our cash flow could be negatively impacted.

We also believe, based on our historical experience and forecasted operations, that we will have sufficient cash flow or access to capital to meet our obligations over the next five years. We intend to meet our long-term funding requirements for property acquisitions, development, redevelopment and other non-recurring capital improvements through net cash provided from operations, long-term secured and unsecured indebtedness, including borrowings under our unsecured revolving credit facility and unsecured term loan, proceeds from disposal of strategically identified assets (outright or through joint ventures) and/or the issuance of equity and/or debt securities. In the process of exploring different financing options, we actively monitor the impact

53

that each potential financing decision will have on our financial covenants in order to avoid any issues of non-compliance with the terms of our existing financial covenants.

Our ability to raise funds through sales of debt and equity securities and access to other third party sources of capital in the future will be dependent on, among other things, general economic conditions, general market conditions for REITs, rental rates, occupancy levels, market perceptions and the trading price of our shares. We will continue to analyze which sources of capital are most advantageous to us at any particular point in time, but the capital markets may not be consistently available on terms we deem attractive, or at all.

Financial Covenants

Our outstanding corporate debt agreements contain specific financial covenants that may impact future financing decisions made by us or may be impacted by a decline in operations. As of June 30, 2015, we were in compliance with the covenants of our amended and restated unsecured term loan, amended and restated unsecured revolving credit facility, Construction Loan and Storey Park land loan.

Our continued ability to borrow under the amended and restated unsecured revolving credit facility is subject to compliance with financial and operating covenants, and a failure to comply with any of these covenants could result in a default under the credit facility. These debt agreements also contain cross-default provisions that would be triggered if we are in default under other loans, including mortgage loans, in excess of certain amounts. In the event of a default, the lenders could accelerate the timing of payments under the debt obligations and we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all, which would have a material adverse effect on our liquidity, financial condition, results of operations and ability to make distributions to our shareholders.

Below is a summary of certain financial covenants associated with these debt agreements at June 30, 2015 (dollars in thousands):

Unsecured Revolving Credit Facility, Unsecured Term Loan, Construction Loan and Storey Park Land Loan

Covenants	Quarter Ended June 30, 2015	Covenant
Consolidated Total Leverage Ratio(1)	46.2%	≤ 60%
Tangible Net Worth(1)	$945,664	≥ $601,202
Fixed Charge Coverage Ratio(1)	2.22x	≥ 1.50x
Maximum Dividend Payout Ratio	66.6%	≤ 95%
Restricted Investments:
Joint Ventures	5.5%	≤ 15%
Real Estate Assets Under Development	1.1%	≤ 15%
Undeveloped Land	1.0%	≤ 5%
Structured Finance Investments	1.9%	≤ 5%
Total Restricted Investments	4.0%	≤ 25%
Restricted Indebtedness:
Maximum Secured Debt	20.0%	≤ 40%
Unencumbered Pool Leverage(1)	43.6%	≤ 60%
Unencumbered Pool Interest Coverage Ratio(1)	5.72x	≥ 1.75x

⁽¹⁾  These are the only covenants that apply to our 440 First Street, NW construction loan and our Storey Park land loan and, in each case, are calculated in accordance with the amended and restated unsecured revolving credit facility.

Cash Flows

Due to the nature of our business, we rely on working capital and net cash provided by operations and, if necessary, borrowings under our unsecured revolving credit facility to fund our short-term liquidity needs. Net cash provided by operations is substantially dependent on the continued receipt of rental payments and other expenses reimbursed by our tenants. The ability of tenants to meet their obligations, including the payment of rent contractually owed to us, and our ability to lease space to new or replacement

54

tenants on favorable terms, could affect our cash available for short-term liquidity needs. We intend to meet short and long term funding requirements for debt maturities, interest payments, dividend distributions, repurchases of our common shares and capital expenditures through cash flow provided by operations, long-term secured and unsecured indebtedness, including borrowings under our unsecured revolving credit facility, proceeds from asset dispositions and/or the issuance of equity and/or debt securities. However, we may not be able to obtain capital from such sources on favorable terms, in the time period we desire, or at all. In addition, our continued ability to borrow under our existing debt instruments is subject to compliance with our financial and operating covenants and a failure to comply with such covenants could cause a default under the applicable debt agreement. In the event of a default, we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all.

We may also fund building acquisitions, development, redevelopment and other non-recurring capital improvements through additional borrowings, issuance of common Operating Partnership units or sales of assets, outright or through joint ventures.

Consolidated cash flow information is summarized as follows:

	Six Months Ended June 30,
(dollars in thousands)	2015			2014			Change
Net cash provided by operating activities	$	28,104		$	30,856		$	(2,752	)
Net cash provided by (used in) investing activities	55,109			(9,589		)	64,698
Net cash used in financing activities	(83,801		)	(16,609		)	(67,192		)

Net cash provided by operating activities decreased $2.8 million for the six months ended June 30, 2015 compared with the same period in 2014, primarily due to the timing of cash payments and receipts as we had an increase in accounts and other receivables and decreases in accounts payable and accrued expenses as well as rents received in advance. The decrease in net cash provided by operating activities was partially offset by an increase in net operating income for the six months ended June 30, 2015 compared with the same period in 2014, which was due to higher occupancy in our portfolio.

Net cash provided by investing activities was $55.1 million for the six months ended June 30, 2015 compared with cash used in investing activities of $9.6 million for the six months ended June 30, 2014. During the six months ended June 30, 2015, we received net proceeds of $56.9 million from the sale of the Richmond Portfolio, which does not include cash used to prepay $3.2 million of mortgage and other indebtedness debt secured by the Richmond Portfolio. For the six months ended June 30, 2014, we acquired two properties for an aggregate purchase price of $61.7 million and sold four properties for aggregate net proceeds of $85.3 million. During the six months ended June 30, 2015, the owners of America’s Square prepaid a mezzanine loan that had an outstanding balance of $29.7 million. The proceeds from the loan repayment were used to pay down a portion of the outstanding balance of our unsecured revolving credit facility. The increase in cash provided by investing activities was partially offset by a $7.1 million increase in cash used for additions to rental property and furniture, fixtures and equipment, which was driven by tenant improvement costs at Atlantic Corporate Park in our Northern Virginia region. For the six months ended June 30, 2014, we used cash to fund a $9.0 million increase in the existing mezzanine loan to the owners of 950 F Street, NW, which was provided by a draw under our unsecured revolving credit facility.

Net cash used in financing activities increased $67.2 million for the six months ended June 30, 2015 compared with the same period in 2014 as we issued $26.0 million of debt and repaid $84.9 million of outstanding debt during the six months ended June 30, 2015, compared with the issuance of $104.8 million of debt and the repayment of $96.7 million of outstanding debt during the six months ended June 30, 2014.

Contractual Obligations

As of June 30, 2015, we had contractual construction in progress obligations, which included amounts accrued at June 30, 2015, of $26.9 million. The amount of contractual construction in progress obligations are primarily related to development activities for the to-be-constructed building in our Northern Virginia reporting segment. As of June 30, 2015, we had contractual rental property and furniture, fixtures and equipment obligations of $10.5 million outstanding, which included amounts accrued at June 30, 2015. The amount of contractual rental property and furniture, fixtures and equipment obligations at June 30, 2015 included significant tenant improvement costs for a new lease at Hillside I and II, which is located in our Maryland reporting segment. We anticipate meeting our contractual obligations related to our construction activities with cash from our operating activities. In the event cash from our operating activities is not sufficient to meet our contractual obligations, we can access additional capital through our unsecured revolving credit facility.

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We remain liable, solely to the extent of our proportionate ownership percentage, to fund any capital shortfalls or commitments from properties owned through unconsolidated joint ventures.

We have various obligations to certain local municipalities associated with our development projects that will require completion of specified site improvements, such as sewer and road maintenance, grading and other general landscaping work. As of June 30, 2015, we remained liable to those local municipalities for $2.6 million in the event that we do not complete the specified work. We intend to complete the site improvements in satisfaction of these obligations.

We had no other material contractual obligations as of June 30, 2015.

Distributions

We are required to distribute at least 90% of our REIT taxable income to our shareholders in order to maintain qualification as a REIT, including some types of taxable income we recognize for tax purposes but with regard to which we do not receive corresponding cash. In addition, we must distribute 100% of our taxable income to our shareholders to eliminate our U.S. federal income tax liability. The funds we use to pay dividends on our common and preferred shares are provided through distributions from the Operating Partnership. For each of our common and preferred shares, the Operating Partnership has issued a corresponding common and preferred unit to us. We are the sole general partner of and, as of June 30, 2015, owned 100% of the preferred interest and 95.7% of the common interest in the Operating Partnership. The remaining common interests in the Operating Partnership are limited partnership interests, some of which are owned by two of our executive officers and one of our trustees each of whom contributed certain properties and other assets to us upon our formation, and the remainder of which are owned by other unrelated parties. The Operating Partnership is required to make cash distributions to us in an amount sufficient to meet our distribution requirements. The cash distributions by the Operating Partnership reduce the amount of cash that is available for general corporate purposes, which includes repayment of debt, funding acquisitions or construction activities, and for other corporate operating activities.

On a quarterly basis, our management team recommends a distribution amount that must then be approved by our Board of Trustees in its sole discretion. The amount of future distributions will be at the discretion of our Board of Trustees and will be based on, among other things: (i) the taxable income and cash flow generated by our operating activities; (ii) cash generated by, or used in, our financing and investing activities; (iii) the annual distribution requirements under the REIT provisions of the Internal Revenue Code; and (iv) such other factors as the Board of Trustees deems relevant. Our ability to make cash distributions will also be limited by the covenants contained in our Operating Partnership agreement and our financing arrangements as well as limitations imposed by state law and the agreements governing any future indebtedness. See “—Financial Covenants” above and “Item 1A – Risk Factors – Risks Related to Our Business and Properties – Covenants in our debt agreements could adversely affect our liquidity and financial condition” in Part I, Item 1A in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2014 for additional information regarding the financial covenants.

Dividends

On July 28, 2015, we declared a dividend of $0.15 per common share, equating to an annualized dividend of $0.60 per common share. The dividend will be paid on August 17, 2015 to common shareholders of record as of August 10, 2015. We also declared a dividend of $0.484375 per share on our Series A Preferred Shares. The dividend will be paid on August 17, 2015 to preferred shareholders of record as of August 10, 2015.

Funds From Operations

FFO is a non-GAAP measure used by many investors and analysts that follow the public real estate industry. We consider FFO a useful measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assume that the value of rental property diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance. We also consider FFO an appropriate supplemental performance measure given its wide use by and relevance to investors and analysts. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assume that the value of real estate diminishes predictably over time.

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), represents net income (computed in accordance with GAAP), excluding gains (losses) on sales of rental property and impairments of rental property, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. We compute FFO in accordance with NAREIT’s definition, which may differ from the methodology for calculating FFO, or similarly titled measures,

56

used by other companies and this may not be comparable to those presentations. Our methodology for computing FFO adds back noncontrolling interests in the income from our Operating Partnership in determining FFO. We believe this is appropriate as common Operating Partnership units are presented on an as-converted, one-for-one basis for shares of stock in determining FFO per diluted share. FFO available to common shareholders is calculated as FFO less accumulated dividends on our preferred shares for all the periods presented.

FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. We present FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding common Operating Partnership units for the periods presented. Our presentation of FFO in accordance with NAREIT’s definition, or as adjusted by us, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.

The following table presents a reconciliation of net (loss) income attributable to common shareholders to FFO and FFO available to common shareholders and unitholders (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Net income attributable to First Potomac Realty Trust	$	590		$	17,682		$	1,195		$	16,434
Less: Dividends on preferred shares	(3,100		)	(3,100		)	(6,200		)	(6,200		)
Net (loss) income attributable to common shareholders	(2,510		)	14,582			(5,005		)	10,234
Add: Depreciation and amortization:
Rental property	16,817			14,829			33,151			29,139
Discontinued operations	—			822			1,222			2,071
Unconsolidated joint ventures	1,032			1,014			2,043			2,302
Impairment of rental property(1)	—			3,956			—			3,956
Gain on sale of rental property(2)	—			(22,514		)	(857		)	(22,568		)
Net (loss) income attributable to noncontrolling interests in the Operating Partnership	(112		)	652			(224		)	458
FFO available to common shareholders and unitholders	15,227			13,341			30,330			25,592
Dividends on preferred shares	3,100			3,100			6,200			6,200
FFO	$	18,327		$	16,441		$	36,530		$	31,792
Weighted average common shares and Operating Partnership units outstanding – diluted	60,982			60,850			60,969			60,820

⁽¹⁾  Impairment charges of $4.0 million are included in continuing operations in our consolidated statements of operations for both the three and six months ended June 30, 2014 related to the sale of four buildings at Owings Mills Business Park.

⁽²⁾  During the three and six months ended June 30, 2014, we recorded a $21.2 million gain on the sale of Corporate Campus at Ashburn Center, which is reflected in continuing operations in our consolidated statements of operations. During the six months ended June 30, 2015, the gain on sale of rental property is related to the sale of the Richmond portfolio.

Off-Balance Sheet Arrangements

We are secondarily liable for $2.8 million of mortgage debt, which represents our proportionate share of the mortgage debt that is secured by two properties, which we own through two unconsolidated joint ventures. Management believes the fair value of the potential liability to us is inconsequential as the likelihood of our need to perform under the debt agreement is remote. See note 6, Investment in Affiliates, in the notes to our condensed consolidated financial statements for more information.

ITEM 3: QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. In the normal course of business, we are exposed to the effect of interest rate changes. We have historically entered into derivative agreements to mitigate exposure to unexpected changes in interest. Market risk refers to the risk of loss from adverse changes in market interest rates. We periodically use derivative financial instruments to seek to manage, or hedge, interest rate

57

risks related to our borrowings. We do not use derivatives for trading or speculative purposes and only enter into contracts with major financial institutions based on their credit rating and other factors. We intend to enter into derivative agreements only with counterparties that we believe have a strong credit rating to mitigate the risk of counterparty default or insolvency.

We had $754.6 million of debt outstanding at June 30, 2015, of which $248.4 million was fixed rate debt and $300.0 million was hedged variable rate debt. The remainder of our debt, $206.2 million, was unhedged variable rate debt that consisted of $152.0 million under the unsecured revolving credit facility, a $22.0 million loan that encumbers the Storey Park land and the $32.2 million outstanding balance under the Construction Loan. At June 30, 2015, both the Storey Park land loan and the Construction Loan had a contractual interest rate of LIBOR plus 2.50%. At June 30, 2015, LIBOR was 0.19%. A change in interest rates of 1% would result in an increase or decrease of $2.1 million in interest expense on our unhedged variable rate debt on an annualized basis.

The table below summarizes our interest rate swap agreements as of June 30, 2015 (dollars in thousands):

Maturity Date	Notional Amount		Interest Rate Contractual Component	Fixed LIBOR Interest Rate
July 2016	$	35,000	LIBOR	1.754	%
July 2016	25,000		LIBOR	1.763	%
July 2017	30,000		LIBOR	2.093	%
July 2017	30,000		LIBOR	2.093	%
July 2017	25,000		LIBOR	1.129	%
July 2017	12,500		LIBOR	1.129	%
July 2017	50,000		LIBOR	0.955	%
July 2018	12,500		LIBOR	1.383	%
July 2018	30,000		LIBOR	1.660	%
July 2018	25,000		LIBOR	1.394	%
July 2018	25,000		LIBOR	1.135	%
Total/Weighted Average	$	300,000		1.505	%

For fixed rate debt, changes in interest rates generally affect the fair value of debt but not our earnings or cash flow. See note 10, Fair Value Measurements, in the notes to our condensed consolidated financial statements for more information on the fair value of our debt.

ITEM 4: CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in our periodic reports pursuant to the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required financial disclosure.

We carried out an evaluation, under the supervision and with the participation of our management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) as of the end of the period covered by this report. Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II: OTHER INFORMATION

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Item 1. Legal Proceedings

We are subject to legal proceedings and claims arising in the ordinary course of our business. In the opinion of our management, as of June 30, 2015, we were not involved in any material litigation, nor, to management’s knowledge, is any material litigation threatened against us or the Operating Partnership.

Item 1A. Risk Factors

As of June 30, 2015, there were no material changes to our risk factors previously disclosed in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

We did not sell any unregistered equity securities during the six months ended June 30, 2015. During the six months ended June 30, 2015, 11,508 common Operating Partnership units were redeemed with available cash. No common Operating Partnership units were redeemed for common shares during the six months ended June 30, 2015.

Issuer Purchases of Equity Securities

During the three months ended June 30, 2015, certain employees surrendered common shares owned by them to satisfy their statutory minimum federal income tax obligation associated with the vesting of restricted common shares of beneficial interest issued under our 2009 Equity Compensation Plan, as amended.

The following table summarizes all of the repurchases during the three months ended June 30, 2015.

Period	Total Number of Shares Purchased	Average Price Paid Per Share(1)		Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs	Maximum Number Of Shares That May Yet Be Purchased Under The Plans Or Programs
April 1, 2015 through April 30, 2015	—	$	—	N/A	N/A
May 1, 2015 through May 31, 2015	—	—		N/A	N/A
June 1, 2015 through June 30, 2015	1,639	10.15		N/A	N/A
Total	1,639	$	10.15	N/A	N/A

⁽¹⁾  The price paid per share is based on the closing price of our common shares as of the date of the determination of the statutory minimum federal income tax.

In July 2015, our Board of Trustees authorized a share repurchase program that allows us to acquire up to five million of our common shares from time to time over the next twelve months in open market transactions at prevailing prices or in negotiated private transactions. No common shares have been repurchased under this program as of the date of this filing. We are not obligated to acquire any particular amount of common shares and the share repurchase program may be suspended by the Board of Trustees at any time.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

Not applicable.

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Item 6. Exhibits

No.	Description
31.1*	Section 302 Certification of Chief Executive Officer.
31.2*	Section 302 Certification of Chief Financial Officer.
32.1**	Section 906 Certification of Chief Executive Officer.
32.2**	Section 906 Certification of Chief Financial Officer.

101* XBRL (Extensible Business Reporting Language). The following materials from the First Potomac Realty Trust’s Quarterly Report on Form 10-Q for the period ended June 30, 2015, formatted in XBRL: (i) Consolidated Balance Sheets as of June 30, 2015 (unaudited) and December 31, 2014; (ii) Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2015 and 2014; (iii) Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2015 and 2014; (iv) Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2015 and 2014; and (v) Notes to Condensed Consolidated Financial Statements (unaudited).

*	Filed herewith.
**	Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST POTOMAC REALTY TRUST
Date: July 30, 2015	/s/ Douglas J. Donatelli
	Douglas J. Donatelli
	Chief Executive Officer
Date: July 30, 2015	/s/ Andrew P. Blocher
	Andrew P. Blocher
	Executive Vice President and Chief Financial Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Douglas J. Donatelli, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of First Potomac Realty Trust;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 30, 2015	/s/Douglas J. Donatelli
	Douglas J. Donatelli
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Andrew P. Blocher, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of First Potomac Realty Trust;
2.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 30, 2015	/s/Andrew P. Blocher
	Andrew P. Blocher
	Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of First Potomac Realty Trust (the “Company”) on Form 10-Q for the quarter ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Douglas J. Donatelli, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 30, 2015	/s/Douglas J. Donatelli
	Douglas J. Donatelli
	Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of First Potomac Realty Trust (the “Company”) on Form 10-Q for the quarter ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Andrew P. Blocher, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 30, 2015	/s/Andrew P. Blocher
	Andrew P. Blocher
	Executive Vice President and Chief Financial Officer

XML

Earnings Per Common Share - Anti-Dilutive Shares Not Included in Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount		16,319	13,841	15,484	14,069
Stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount		1,046	1,145	1,069	1,170
Non-vested share awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount		405	400	450	419
Series A Preferred Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount	[1]	14,868	12,296	13,965	12,480

[1] Our Series A Preferred Shares are only convertible into our common shares upon certain changes in control of our Company. The dilutive shares are calculated as the daily average of the face value of the Series A Preferred Shares divided by the outstanding common share price.

XML

Debt - Additional Information (Detail) $ in Thousands				1 Months Ended		3 Months Ended			6 Months Ended
		Oct. 16, 2014 USD ($) Rate	Jun. 05, 2013 USD ($)	May. 31, 2016	Jan. 31, 2014 USD ($)	Jun. 30, 2015 USD ($) Tranches Integer Rate		Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Integer Rate		Jun. 30, 2014 USD ($)	Jul. 21, 2015 USD ($)	Dec. 31, 2014 USD ($)		Aug. 04, 2011 Rate
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[1]					$ 302,582	[2]		$ 302,582	[2]			$ 308,637	[3]
Amount borrowed								$ 21,700
Basis spread over variable rate			2.50%			1.70%
Recourse mortgage debt						$ 754,582			754,582				813,637
Outstanding balance of three tranches						300,000			300,000				300,000
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)	[1]					$ 152,000	[2]		152,000	[2]			205,000	[3]
Proceed to pay loan									84,883		$ 96,697
Interest rate during period						1.90%
Average interest rate at prior period end								1.70%
Maximum outstanding borrowings						$ 156,000		$ 158,000	$ 218,000		158,000
Weighted average interest rate						1.90%			1.90%
Available capacity on the unsecured revolving credit facility						$ 92,000			$ 92,000
Annual commitment fee						0.25%
Number of interest rate swap agreements						11			11
Fixed effective interest rate						1.50%			1.50%
Unsecured term loan
Debt Instrument [Line Items]
Number of tranches | Tranches						3
Outstanding balance of three tranches						$ 300,000			$ 300,000
Unsecured revolving credit facility
Debt Instrument [Line Items]
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)						13,000			13,000
Proceed to pay loan						4,000
Jackson Loan [Member]
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[4]					$ 56,251			$ 56,251				64,943
Debt Instrument, Interest Rate, Stated Percentage	[4]					5.19%			5.19%
440 First Street, NW Construction Loan
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[5]					$ 32,216			$ 32,216				$ 32,216
Debt Instrument, Interest Rate, Stated Percentage						2.50%			2.50%
Interest Rate Swap
Debt Instrument [Line Items]
Fixed effective interest rate						1.505%			1.505%
Amount on variable rate debt						$ 300,000			$ 300,000
Unused lines of credit
Debt Instrument [Line Items]
Weighted average borrowings outstanding on unsecured revolving credit facility						$ 149,400		$ 112,700	$ 171,300		$ 104,900
Greyhound Property [Member]
Debt Instrument [Line Items]
Percentage Of Interest In Joint Venture Owned By Entity | Rate															97.00%
Mortgage Loans on Real Estate		$ 22,000
Debt Instrument, Interest Rate, Stated Percentage | Rate						5.00%			5.00%
Basis spread over variable rate | Rate		2.50%
Maturity date		Oct. 16, 2016
Maturity Period		1 year
Recourse mortgage debt		$ 6,000
440 First Street, NW [Member]
Debt Instrument [Line Items]
Amount borrowed					$ 10,500
Borrowing capacity of a construction loan			$ 43,500
Maturity Period											1 year
Percentage of outstanding principal						50.00%			50.00%
Subsequent Event [Member] | Jackson Loan [Member]
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[4]											$ 64,200
Subsequent Event [Member] | 440 First Street, NW [Member]
Debt Instrument [Line Items]
Maturity date				May 30, 2016

[1] At June 30, 2015, LIBOR was 0.19%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR.

[2] Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We sold Rumsey Center on July 28, 2015.

[3] The balance at December 31, 2014, includes five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

[4] At June 30, 2015, the loan was secured by the following properties: Plaza 500, Van Buren Office Park, Rumsey Center, Snowden Center, Greenbrier Technology Center II and Norfolk Business Center. At June 30, 2015, $8.1 million of the $64.3 million outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. On July 21, 2015, we prepaid, without penalty, the outstanding balance on our Jackson National Life Loan, including the portion that was allocable to Rumsey Center, with a draw under our unsecured revolving credit facility. We subsequently sold Rumsey Center on July 28, 2015.

[5] At June 30, 2015, LIBOR was 0.19%.

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Dispositions - Additional Information (Detail) - Segments [Domain] $ in Thousands		3 Months Ended					6 Months Ended
		Jun. 30, 2015 USD ($) ft²	Mar. 31, 2015 USD ($)	Jun. 30, 2014 USD ($) ft²		Mar. 31, 2014 USD ($)	Jun. 30, 2015 USD ($) ft²	Jun. 30, 2014 USD ($) ft²
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Square feet | ft²	[1]	7,957,016		8,700,651	[2]		7,957,016	8,700,651	[2]
Gain (Loss) on Sale of Properties		$ 0		$ 21,230			$ 0	$ 21,230
Richmond
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Disposition Date Of Property		Mar. 19, 2015
Square feet | ft²		827,900					827,900
Proceeds from sale of properties		$ 53,768
Unamortized straight-line rent			$ 2,000
Girard Business Center and Gateway Center [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Disposition Date Of Property		Jan. 29, 2014
Square feet | ft²		341,973					341,973
Proceeds from sale of properties		$ 31,616
Unamortized straight-line rent						$ 1,500

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

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Investment in Affiliates - Additional Information (Detail) ft² in Thousands, $ in Millions			3 Months Ended		6 Months Ended
	Sep. 26, 2017	Sep. 26, 2014 USD ($) Rate	Jun. 30, 2015 USD ($) ft²	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Nov. 12, 2014 USD ($)	Jul. 10, 2014 USD ($)
Schedule of Equity Method Investments [Line Items]
Ownership percentage in unconsolidated joint venture			51.00%		51.00%
Repaid mortgage							$ 48.3
Investment in affiliates variable interest entity square feet | ft²			327
Financing							$ 50.0
Mortgage interest rate			3.91%		3.91%
Loan Interest only payment date			Dec. 31, 2024
Loan maturity date			Dec. 01, 2029
Loan prepayment date			Jun. 01, 2029
Interest rate increase (decrease) | Rate		60.00%
Fees from joint ventures			$ 0.2	$ 0.2	$ 0.3	$ 0.3
1750 H Street
Schedule of Equity Method Investments [Line Items]
Repaid mortgage								$ 27.9
Financing								$ 32.0
Mortgage interest rate			3.92%		3.92%
Loan maturity date			Aug. 01, 2024
Loan prepayment date			Aug. 01, 2021
RiversPark I and II
Schedule of Equity Method Investments [Line Items]
Ownership percentage in unconsolidated joint venture		25.00%
Investment in affiliates variable interest entity square feet | ft²			308
Financing		$ 28.0
Percentage of outstanding principal		25.00%	10.00%		10.00%
Washington D C Reporting Segment | 1750 H Street
Schedule of Equity Method Investments [Line Items]
Ownership percentage in unconsolidated joint venture			50.00%		50.00%
Washington D C Reporting Segment | Maximum | 1750 H Street
Schedule of Equity Method Investments [Line Items]
Investment in affiliates variable interest entity square feet | ft²			113
Subsequent Event | RiversPark I and II
Schedule of Equity Method Investments [Line Items]
Loan maturity date	Sep. 26, 2017

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Share-Based Payments (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Nonvested Share Activity

A summary of our non-vested common share awards at June 30, 2015 is as follows:

	Non-vested Common Shares		Weighted Average Grant Date Fair Value
Non-vested at March 31, 2015	461,615		$	12.83
Granted	31,218		10.57
Vested	(34,835	)	12.96
Non-vested at June 30, 2015	457,998		$	12.67

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Derivative Instruments - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Integer	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Integer	Jun. 30, 2014 USD ($)
Derivatives, Fair Value [Line Items]
Number of interest rate swap agreements	11		11
Fixed effective interest rate	1.50%		1.50%
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Fixed effective interest rate	1.505%		1.505%
Amount on variable rate debt	$ 300,000		$ 300,000
Interest Rate Swap | Interest Expense
Derivatives, Fair Value [Line Items]
Accumulated other comprehensive loss reclassified as an increase in interest expense	$ 1,000	$ 1,000	2,000	$ 2,100
Estimated accumulated other comprehensive loss reclassified as an increase in interest expense over the following twelve months			$ 3,600

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Rental Property (Tables)

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

Summary of Rental Property

Rental property consists of the following (dollars in thousands):

	June 30, 2015(1)			December 31, 2014(2)
Land and land improvements	$	322,538		$	325,214
Buildings and improvements	941,248			949,683
Construction in progress	82,432			69,181
Tenant improvements	172,931			159,867
Furniture, fixtures and equipment	420			427
	1,519,569			1,504,372
Less: accumulated depreciation	(233,268		)	(215,499		)
	$	1,286,301		$	1,288,873

⁽¹⁾ Excludes rental property totaling $10.9 million at June 30, 2015 related to Rumsey Center, which was classified as held-for-sale at June 30, 2015. The property was sold on July 28, 2015.

⁽²⁾ Excludes rental property totaling $57.7 million at December 31, 2014 related to the sale of the Richmond Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2014 and was sold on March 19, 2015.

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Dispositions - Summary of Completed Property Dispositions (Detail) $ in Thousands		3 Months Ended
		Jun. 30, 2015 USD ($) ft²	Jun. 30, 2014 ft²	[2]
Schedule Of Discontinued Operations [Line Items]
Square feet	[1]	7,957,016	8,700,651
Richmond
Schedule Of Discontinued Operations [Line Items]
Reporting Segment		Southern Virginia
Disposition Date Of Property		Mar. 19, 2015
Property Type		Business Park
Square feet		827,900
Proceeds from sale of properties | $		$ 53,768
Patrick Center
Schedule Of Discontinued Operations [Line Items]
Reporting Segment		Maryland
Disposition Date Of Property		Apr. 16, 2014
Property Type		Office
Square feet		66,269
Proceeds from sale of properties | $		$ 10,888
West Park
Schedule Of Discontinued Operations [Line Items]
Reporting Segment		Maryland
Disposition Date Of Property		Apr. 02, 2014
Property Type		Office
Square feet		28,333
Proceeds from sale of properties | $		$ 2,871
Girard Business Center and Gateway Center
Schedule Of Discontinued Operations [Line Items]
Reporting Segment		Maryland
Disposition Date Of Property		Jan. 29, 2014
Property Type		Business Park and Office
Square feet		341,973
Proceeds from sale of properties | $		$ 31,616

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

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Notes Receivable - Summary of Notes Receivable (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Receivables with Imputed Interest [Line Items]
Face Amount		$ 63,720
Unamortized Origination Fees		(41)
Balance		63,679
Notes Receivables Issued on December 2010 [Member]
Receivables with Imputed Interest [Line Items]
Face Amount	$ 34,000	34,000
Unamortized Origination Fees	0	0
Balance	$ 34,000	$ 34,000
Interest Rate	9.75%	9.75%
America Square [Member]
Receivables with Imputed Interest [Line Items]
Face Amount		$ 29,720
Unamortized Origination Fees		(41)
Balance		$ 29,679
Interest Rate		9.00%

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Allowance for credit losses for its notes receivable	$ 0	$ 0

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Debt - Schedule of Borrowings (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015		Jun. 30, 2015		Dec. 31, 2014
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[1]	$ 302,582	[2]	$ 302,582	[2]	$ 308,637	[3]
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)	[1]	152,000	[2]	152,000	[2]	205,000	[3]
Total long term debt		$ 754,582		$ 754,582		813,637
Effective interest rate on the notes		0.19%		0.19%
Mortgage Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage rate range, minimum				4.40%
Debt instrument, interest rate, effective percentage rate range, maximum				6.01%
Debt instrument maturity date
Unsecured Term Loan, Effective Interest Rates Ranging from LIBOR Plus 1.45% to LIBOR Plus 1.90%, with Staggered Maturity Dates ranging from October 2018 to October 2020
Debt Instrument [Line Items]
Unsecured term loan, effective interest rates ranging from LIBOR plus 1.65% to LIBOR plus 2.05%, with staggered maturity dates ranging from October 2018 to October 2020(3)	[1]	$ 300,000	[2]	$ 300,000	[2]	300,000	[3]
Debt instrument maturity date
Debt Instrument Basis Spread On Variable Rate Minimum				1.65%
Debt Instrument Basis Spread On Variable Rate Maximum				2.05%
Unsecured revolving credit facility
Debt Instrument [Line Items]
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)		$ 13,000		$ 13,000
Effective interest rate on the notes		1.70%		1.70%
Debt instrument maturity date
Rumsey Center [Domain]
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[4]	$ 8,083		$ 8,083		0
Mortgages Held-for-sale, Fair Value Disclosure		$ 8,100		$ 8,100
Effective interest rate on the notes	[4]	5.19%		5.19%
Debt instrument maturity date	[4]
Richmond
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)						3,498
Mortgages Held-for-sale, Fair Value Disclosure		$ 3,500		$ 3,500
Disposition Date Of Property		Mar. 19, 2015
Rental Property [Member] | Maryland Reporting Segment [Member]
Debt Instrument [Line Items]
Disposition Date Of Property		Jul. 28, 2015
Jackson Loan [Member]
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[4]	$ 56,251		$ 56,251		$ 64,943
Effective interest rate on the notes	[4]	5.19%		5.19%
Debt instrument maturity date	[4]
Jackson Loan [Member] | Properties Secured by Jackson Loan [Domain]
Debt Instrument [Line Items]
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	[4]	$ 64,300		$ 64,300

[1] At June 30, 2015, LIBOR was 0.19%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR.

[2] Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We sold Rumsey Center on July 28, 2015.

[3] The balance at December 31, 2014, includes five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

[4] At June 30, 2015, the loan was secured by the following properties: Plaza 500, Van Buren Office Park, Rumsey Center, Snowden Center, Greenbrier Technology Center II and Norfolk Business Center. At June 30, 2015, $8.1 million of the $64.3 million outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. On July 21, 2015, we prepaid, without penalty, the outstanding balance on our Jackson National Life Loan, including the portion that was allocable to Rumsey Center, with a draw under our unsecured revolving credit facility. We subsequently sold Rumsey Center on July 28, 2015.

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Segment Information - Additional Information (Detail)	3 Months Ended
	Jun. 30, 2015 segment
Segment Reporting [Abstract]
Number of Reportable Segments	4

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Equity - Additional Information (Detail) - $ / shares			6 Months Ended
	Jul. 28, 2015	Apr. 28, 2015	Jun. 30, 2015	Dec. 31, 2014
Dividends Payable [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			5,000,000
Stock Repurchase Program, Period in Force			12 months
Common stock, shares outstanding			58,758,000	58,815,000
Dividend declared date		Apr. 28, 2015
Series A Preferred Shares
Dividends Payable [Line Items]
Dividend paid date		May 15, 2015
Dividend record date		May 08, 2015
Dividends declared on Series A Preferred Shares		$ 0.484375
Common Shares
Dividends Payable [Line Items]
Common share dividend per share declared		0.15
Common share dividend per share annualized		$ 0.60
Dividend paid date		May 15, 2015
Dividend record date		May 08, 2015
Subsequent Event [Member]
Dividends Payable [Line Items]
Dividend declared date	Jul. 28, 2015
Subsequent Event [Member] | Series A Preferred Shares
Dividends Payable [Line Items]
Dividends declared on Series A Preferred Shares	$ 0.484375
Subsequent Event [Member] | Common Shares
Dividends Payable [Line Items]
Common share dividend per share declared	0.15
Common share dividend per share annualized	$ 0.60
Dividend paid date	Aug. 17, 2015
Dividend record date	Aug. 10, 2015

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Investment in Affiliates - Results of Operations of Company's Unconsolidated Joint Ventures (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule of Equity Method Investments [Line Items]
Total revenues	$ 43,039	$ 39,307	$ 86,888	$ 78,671
Total operating expenses	(37,268)	(39,579)	(77,285)	(75,322)
Operating income (loss)	5,771	(272)	9,603	3,349
Depreciation and amortization	(16,817)	(14,829)	(33,151)	(29,139)
Other expense, net	(5,295)	17,068	(8,028)	12,862
Net income	456	199	803	(28)
Unconsolidated Joint Ventures
Schedule of Equity Method Investments [Line Items]
Total revenues	6,063	5,780	12,230	11,531
Total operating expenses	(1,756)	(1,694)	(3,912)	(3,920)
Operating income (loss)	4,307	4,086	8,318	7,611
Depreciation and amortization	(2,287)	(2,264)	(4,536)	(5,067)
Other expense, net	(975)	(1,077)	(1,948)	(2,087)
Net income	$ 1,045	$ 745	$ 1,834	$ 457

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(a) Principles of Consolidation

Our unaudited condensed consolidated financial statements include our accounts and the accounts of our Operating Partnership and the subsidiaries in which we or our Operating Partnership has a controlling interest, which includes First Potomac Management LLC, a wholly-owned subsidiary that manages the majority of our properties. All intercompany balances and transactions have been eliminated in consolidation.

We have condensed or omitted certain information and note disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”) in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2014 and as updated from time to time in our other filings with the SEC.

In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals necessary to present fairly our financial position as of June 30, 2015, the results of our operations and our comprehensive income for the three and six months ended June 30, 2015 and 2014 and our cash flows for the six months ended June 30, 2015 and 2014. Interim results are not necessarily indicative of full-year performance due, in part, to the timing of transactions and the impact of acquisitions and dispositions throughout the year as well as the seasonality of certain operating expenses such as utilities expense and snow and ice removal costs.

(b) Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires our management team to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Estimates include the amount of accounts receivable that may be uncollectible, recoverability of notes receivable, future cash flows, discount and capitalization rate assumptions used to fair value acquired properties and to test impairment of certain long-lived assets and goodwill; derivative valuations; market lease rates, lease-up periods, leasing and tenant improvement costs used to fair value intangible assets acquired and probability weighted cash flow analysis used to fair value contingent liabilities. Actual results could differ from those estimates.

(c) Rental Property

Rental property is initially recorded at fair value, when acquired in a business combination, or initial cost when constructed or acquired in an asset purchase. Improvements and replacements are capitalized at cost when they extend the useful life, increase capacity or improve the efficiency of the asset. Repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of our assets, by class, are as follows:

Buildings	39 years
Building improvements	5 to 20 years
Furniture, fixtures and equipment	5 to 15 years
Lease related intangible assets	The term of the related lease
Tenant improvements	Shorter of the useful life of the asset or the term of the related lease

We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of the carrying value of a property, an impairment analysis is performed. We assess potential impairments based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the property’s use and eventual disposition. This estimate is based on projections of future revenues, expenses, capital improvement costs to maintain the operating capacity, expected holding periods and capitalization rates. These cash flows consider factors such as expected market trends and leasing prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a real estate investment based on forecasted undiscounted cash flows, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. Further, we will record an impairment loss if we expect to dispose of a property in the near term, at a price below carrying value. In such an event, we will record an impairment loss based on the difference between a property’s carrying value and its projected sales price less any estimated costs to sell.

We will classify a building as held-for-sale in accordance with GAAP in the period in which we have made the decision to dispose of the building, our Board of Trustees or a designated delegate has approved the sale, there is a high likelihood a binding agreement to purchase the property will be signed under which the buyer will be required to commit a significant amount of nonrefundable cash and no significant financing contingencies exist that could cause the transaction not to be completed in a timely manner. We will cease recording depreciation on a building once it has been classified as held-for-sale. In the second quarter of 2014, we prospectively adopted Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which impacts the presentation of operations and gains or losses from disposed properties and properties classified as held-for-sale. ASU 2014-08 states that a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations or financial results. The operations of all properties that were sold prior to the adoption of ASU 2014-08, two properties (West Park and Patrick Center) that were classified as held-for-sale in previously issued financial statements prior to our adoption of ASU 2014-08 and were subsequently sold, as well as our Richmond, Virginia portfolio, which included Chesterfield Business Center, Hanover Business Center, Park Central, Virginia Technology Center and a three-acre parcel of undeveloped land (the “Richmond Portfolio”), are reflected within discontinued operations in our consolidated statements of operations for all periods presented.

If the building does not qualify as a discontinued operation under ASU 2014-08, we will classify the building's operating results, together with any impairment charges and any gains or losses on the sale of the building, in continuing operations for all periods presented in our consolidated statements of operations. We will classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheet for the period the held-for-sale criteria were met.

If the building does qualify as a discontinued operation under ASU 2014-08, we will classify the building's operating results, together with any impairment charges and any gains or losses on the sale of the building, in discontinued operations in our consolidated statements of operations for all periods presented and classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheets for the periods presented. Interest expense is reclassified to discontinued operations only to the extent the disposed or held-for-sale property is secured by specific mortgage debt and the mortgage debt will not be assigned to another property owned by us after the disposition.

We recognize the fair value, if sufficient information exists to reasonably estimate the fair value, of any liability for conditional asset retirement obligations when assumed or incurred, which is generally upon acquisition, construction, development or redevelopment and/or through the normal operation of the asset.

We capitalize interest costs incurred on qualifying expenditures for real estate assets under development or redevelopment, which include our investments in assets owned through unconsolidated joint ventures that are under development or redevelopment, while being readied for their intended use in accordance with accounting requirements regarding capitalization of interest. We will capitalize interest when qualifying expenditures for the asset have been made, activities necessary to get the asset ready for its intended use are in progress and interest costs are being incurred. Capitalized interest also includes interest associated with expenditures incurred to acquire developable land while development activities are in progress. We also capitalize direct compensation costs of our construction personnel who manage the development and redevelopment projects, but only to the extent the employee’s time can be allocated to a project. Any portion of construction management costs not directly attributable to a specific project are recognized as general and administrative expense in the period incurred. We do not capitalize any other general and administrative costs such as office supplies, office rent expense or an overhead allocation to our development or redevelopment projects. Capitalized compensation costs were immaterial for the six months ended June 30, 2015 and 2014. Capitalization of interest ends when the asset is substantially complete and ready for its intended use, but no later than one year from completion of major construction activity, if the property is not occupied. We place redevelopment and development assets into service at this time and commence depreciation upon the substantial completion of tenant improvements and the recognition of revenue. Capitalized interest is depreciated over the useful life of the underlying assets, commencing when those assets are placed into service.

(d) Notes Receivable

We provide loans to the owners of real estate properties, which can be collateralized by interest in the real estate property. We record these loans as “Notes receivable, net” in our consolidated balance sheets. The loans are recorded net of any discount or issuance costs, which are amortized over the life of the respective note receivable using the effective interest method. We record interest earned from notes receivable and amortization of any discount costs or issuance costs within “Interest and other income” in our consolidated statements of operations.

We will establish a provision for anticipated credit losses associated with our notes receivable when we anticipate that we may be unable to collect any contractually due amounts. This determination is based upon such factors as delinquencies, loss experience, collateral quality and current economic or borrower conditions. Our collectability of our notes receivable may be adversely impacted by the financial stability of the Washington, D.C. region and the ability of the underlying assets to keep current tenants or attract new tenants. Estimated losses are recorded as a charge to earnings to establish an allowance for credit losses that we estimate to be adequate based on these factors. Based on the review of the above criteria, we did not record an allowance for credit losses for our notes receivable during the six months ended June 30, 2015 and 2014.

(e) Application of New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of ASU 2014-09 from January 1, 2017 to January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements or related disclosures.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”), which requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The guidance will become effective January 1, 2017. The adoption of ASU 2014-15 is not expected to have an impact on our consolidated financial statements or related disclosures.

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ("ASU 2015-01"), which eliminates the concept of extraordinary items from GAAP and the requirement that an entity separately report extraordinary items in the income statement. ASU 2015-01 also requires that entities continue to evaluate whether items are unusual in nature or infrequent in occurrence for presentation and disclosure purposes. ASU 2015-01 applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted and the guidance may be applied prospectively or retrospectively to all prior periods presented in the consolidated financial statements. The adoption of ASU 2015-01 is not expected to have a material impact on our consolidated financial statements or related disclosures.

In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”), which makes certain changes to both the variable interest model and the voting model, including changes to the identification of variable interests (fees paid to a decision maker or service provider), the variable interest entity characteristics for a limited partnership or similar entity and the primary beneficiary determination. ASU 2015-02 is effective January 1, 2016. The adoption of ASU 2015-02 is not expected to have a material impact on our consolidated financial statements or related disclosures.

In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is effective for periods beginning after December 15, 2015 with early adoption permitted and will be applied on a retrospective basis. The guidance will be effective on January 1, 2016 and is not expected to have a material impact on our consolidated financial statements or related disclosures.

(f) Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation as a result of reclassifying the operating results of several properties as discontinued operations. For more information, see note 7, Dispositions.

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Equity - Company's Allocation Between Non-controlling Interests (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Noncontrolling interests in a consolidated partnership	$ 800		$ 898
Total equity	691,096	$ 730,447	710,905	$ 739,291
Net income (loss)	1,193	16,434
Changes in ownership, net	3,219	(725)
Distributions to owners	(23,907)	(23,786)
Other comprehensive income	(314)	(767)
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning Balance, Redeemable noncontrolling interests	33,332	33,221
Net income (loss), Redeemable noncontrolling interests	(225)	458
Change in ownership, net, Redeemable noncontrolling interests	(1,916)	2,358
Distributions to owners, Redeemable noncontrolling interests	(788)	(789)
Other comprehensive income, Redeemable noncontrolling interests	(14)	(34)
Ending Balance, Redeemable noncontrolling interests	30,389	35,214
First Potomac Realty Trust
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	710,007	738,510
Net income (loss)	1,195	16,434
Changes in ownership, net	3,219	(886)
Distributions to owners	(23,811)	(23,786)
Other comprehensive income	(314)	(767)
Ending Balance	690,296	729,505
Non-redeemable Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Noncontrolling interests in a consolidated partnership	800	942	$ 898	$ 781
Net income (loss)	(2)	0
Changes in ownership, net	0	161
Distributions to owners	(96)	0
Other comprehensive income	$ 0	$ 0

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Notes Receivable - Additional Information (Detail) $ in Thousands				3 Months Ended					6 Months Ended			12 Months Ended
		Jan. 10, 2014 USD ($)	Apr. 01, 2011	Jun. 30, 2015 USD ($) ft²	Mar. 31, 2015 USD ($)	Jun. 30, 2014 USD ($) ft²		Mar. 31, 2014 USD ($)	Jun. 30, 2015 USD ($) ft²	Jun. 30, 2014 USD ($) ft²		Dec. 31, 2014 USD ($)	Dec. 31, 2010 USD ($) ft²	Feb. 24, 2015 USD ($)	Apr. 30, 2011 USD ($) ft²
Receivables with Imputed Interest [Line Items]
Area of real estate property | ft²	[1]			7,957,016		8,700,651	[2]		7,957,016	8,700,651	[2]
Unsecured revolving credit facility				$ 152,000					$ 152,000			$ 205,000
Interest income				800					2,000
Income from amortization of origination fees				$ 0		$ 7			$ 5	$ 18
America Square [Member]
Receivables with Imputed Interest [Line Items]
Area of real estate property | ft²															461,000
Mezzanine loan provided to owners														$ 29,700	$ 30,000
Maturity date of loan									May 01, 2016
Prepayment Fee Income					$ 2,400
Fixed interest rate on loan												9.00%
America Square [Member] | Maximum
Receivables with Imputed Interest [Line Items]
Fixed interest rate on loan			9.00%
Notes Receivables Issued on December 2010 [Member]
Receivables with Imputed Interest [Line Items]
Area of real estate property | ft²													287,000
Mezzanine loan provided to owners		$ 34,000											$ 25,000
Maturity date of loan													Apr. 01, 2017
Unsecured revolving credit facility		$ 9,000
Fixed interest rate on loan				9.75%								9.75%
Interest income						$ 1,500				$ 3,000
Write-off of unamortized origination fees								$ 100
Notes Receivables Issued on December 2010 [Member] | Maximum
Receivables with Imputed Interest [Line Items]
Fixed interest rate on loan		12.50%
Notes Receivables Issued on December 2010 [Member] | Minimum [Member]
Receivables with Imputed Interest [Line Items]
Fixed interest rate on loan		9.75%

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

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Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Borrowings

Our borrowings consisted of the following (dollars in thousands):

	June 30,   2015(1)		December 31, 2014(2)
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	$	302,582	$	308,637
Unsecured term loan, effective interest rates ranging from LIBOR plus 1.65% to LIBOR plus 2.05%, with staggered maturity dates ranging from October 2018 to October 2020(3)	300,000		300,000
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)	152,000		205,000
	$	754,582	$	813,637

⁽¹⁾  Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We sold Rumsey Center on July 28, 2015.

⁽²⁾  The balance at December 31, 2014, includes five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

⁽³⁾  At June 30, 2015, LIBOR was 0.19%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR.

Summary of Company's Mortgage Debt

The following table provides a summary of our mortgage and construction loans at June 30, 2015 and December 31, 2014 (dollars in thousands):

Encumbered Property	Contractual Interest Rate	Effective Interest Rate		Maturity Date	June 30,   2015			December 31, 2014
Jackson National Life Loan(1)	5.19%	5.19%		August 2015	$	56,251		$	64,943
440 First Street, NW(2)	LIBOR + 2.50%	LIBOR + 2.50%		May 2016	32,216			32,216
Storey Park(2)	LIBOR + 2.50%	LIBOR + 2.50%		October 2016	22,000			22,000
Gateway Centre Manassas Building I	7.35%	5.88%		November 2016	324			432
Hillside I and II	5.75%	4.62%		December 2016	12,745			12,949
Redland Corporate Center Buildings II & III	4.20%	4.64%		November 2017	65,186			65,816
840 First Street, NE	5.72%	6.01%		July 2020	36,217			36,539
Battlefield Corporate Center	4.26%	4.40%		November 2020	3,610			3,692
1211 Connecticut Avenue, NW	4.22%	4.47%		July 2022	29,404			29,691
1401 K Street, NW	4.80%	4.93%		June 2023	36,546			36,861
		4.75%	(3)		294,499			305,139
Unamortized fair value adjustments					(270		)	(370		)
Principal balance					294,229			304,769
Debt Classified within “Liabilities-Held-for-Sale”
Rumsey Center(1)	5.19%	5.19%		August 2015	8,083			—
Richmond Portfolio(4)
Hanover Business Center Building D	8.88%	6.63%		August 2015	—			104
Chesterfield Business Center Buildings C,D,G and H	8.50%	6.63%		September 2015	—			302
Hanover Business Center Building C	7.88%	6.63%		December 2017	—			505
Chesterfield Business Center Buildings A,B,E and F	7.45%	6.63%		June 2021	—			1,674
Airpark Business Center	7.45%	6.63%		June 2021	—			913
					8,083			3,498
Total unamortized fair value adjustments - Richmond					—			(73		)
Principal balance					8,083			3,425
Total principal balance					$	302,312		$	308,194

⁽¹⁾  At June 30, 2015, the loan was secured by the following properties: Plaza 500, Van Buren Office Park, Rumsey Center, Snowden Center, Greenbrier Technology Center II and Norfolk Business Center. At June 30, 2015, $8.1 million of the $64.3 million outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. On July 21, 2015, we prepaid, without penalty, the outstanding balance on our Jackson National Life Loan, including the portion that was allocable to Rumsey Center, with a draw under our unsecured revolving credit facility. We subsequently sold Rumsey Center on July 28, 2015.

⁽²⁾  At June 30, 2015, LIBOR was 0.19%.

⁽³⁾  Weighted average interest rate on total mortgage and construction debt.

⁽⁴⁾  The mortgage loans and unamortized fair value adjustments that encumbered properties within the Richmond Portfolio were classified within “Liabilities held-for-sale” on our consolidated balance sheet at December 31, 2014. The loans were prepaid upon the sale of the Richmond Portfolio on March 19, 2015.

Unsecured Term Loan

The table below shows the outstanding balances and the interest rates of the three tranches of the $300.0 million unsecured term loan at June 30, 2015 (dollars in thousands):

	Maturity Date	Amount		Interest Rate(1)
Tranche A	October 2018	$	100,000	LIBOR, plus 165 basis points
Tranche B	October 2019	100,000		LIBOR, plus 180 basis points
Tranche C	October 2020	100,000		LIBOR, plus 205 basis points
		$	300,000

⁽¹⁾  At June 30, 2015, LIBOR was 0.19%. The interest rate spread is subject to change based on our maximum total indebtedness ratio. For more information, see note 8(e) Debt – Financial Covenants.

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Dispositions (Tables)

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations Square Feet Area [Table Text Block]

The following table is a summary of property dispositions or held-for-sale properties whose operating results are included in continuing operations in our consolidated statements of operations for the periods presented (dollars in thousands):

	Reporting Segment	Disposition Date	Property Type	Square Feet	Net Sale Proceeds
Rumsey Center(1)	Maryland	7/28/2015	Business Park	135,015	$	14,956
Owings Mills Business Park	Maryland	10/16/2014	Business Park	180,475	12,417
Corporate Campus at Ashburn Center	Northern Virginia	6/26/2014	Business Park	194,184	39,910

⁽¹⁾ Rumsey Center was classified as held-for-sale at June 30, 2015.

Schedule of Disposal Groups Including Not Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The following table summarizes the aggregate results of operations for the three properties that are included in continuing operations for the periods presented (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues	$	481		$	1,745		$	990		$	3,659
Property operating expenses	(129		)	(467		)	(339		)	(1,188		)
Depreciation and amortization	(146		)	(593		)	(336		)	(1,205		)
Interest expense	(110		)	(111		)	(220		)	(223		)
Impairment of rental property	—			(3,956		)	—			(3,956		)
Income (loss) from operations of disposed property	96			(3,382		)	95			(2,913		)
Gain on sale of rental property	—			21,230			—			21,230
Net income from continuing operations of disposed property	$	96		$	17,848		$	95		$	18,317

Summary of Completed Property Dispositions

The following table is a summary of property dispositions whose operating results are reflected as discontinued operations in our consolidated statements of operations for the periods presented (dollars in thousands):

	Reporting Segment	Disposition Date	Property Type	Square Feet	Net Sale Proceeds
Richmond Portfolio	Southern Virginia	3/19/2015	Business Park	827,900	$	53,768
Patrick Center	Maryland	4/16/2014	Office	66,269	10,888
West Park	Maryland	4/2/2014	Office	28,333	2,871
Girard Business Center and Gateway Center	Maryland	1/29/2014	Business Park and Office	341,973	31,616

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

The following table summarizes the results of operations of properties included in discontinued operations (dollars in thousands):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015			2014
Revenues	$	—	$	1,948	$	877		$	3,756
Income (loss) from operations, before taxes(1)	—		254		(975		)	(657		)
Loss on debt extinguishment	—		—		(489		)	—
Gain on sale of rental property	—		1,284		857			1,338

⁽¹⁾  During the first quarter of 2015, we accelerated $2.0 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of the Richmond Portfolio in March 2015. During the first quarter of 2014, we accelerated $1.5 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of both Girard Business Center and Gateway Center in January 2014.

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Derivative Instruments - Summary of Interest Rate Swap Agreements (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
Derivatives, Fair Value [Line Items]
Fixed LIBOR Interest Rate	1.50%
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Notional Amount	$ 300,000
Fixed LIBOR Interest Rate	1.505%
Interest Rate Swap One
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2016
Notional Amount	$ 35,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.754%
Interest Rate Swap Two
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2016
Notional Amount	$ 25,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.763%
Interest Rate Swap Three
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2017
Notional Amount	$ 30,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	2.093%
Interest Rate Swap Four
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2017
Notional Amount	$ 30,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	2.093%
Interest Rate Swap Five
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2018
Notional Amount	$ 30,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.66%
Interest Rate Swap Six
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2018
Notional Amount	$ 25,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.394%
Interest Rate Swap Seven
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2017
Notional Amount	$ 25,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.129%
Interest Rate Swap Eight
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2017
Notional Amount	$ 12,500
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.129%
Interest Rate Swap Nine
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2018
Notional Amount	$ 12,500
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.383%
Interest Rate Swap Ten
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2017
Notional Amount	$ 50,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	0.955%
Interest Rate Swap Eleven
Derivatives, Fair Value [Line Items]
Maturity Date	Jul. 31, 2018
Notional Amount	$ 25,000
Interest Rate Contractual Component	LIBOR
Fixed LIBOR Interest Rate	1.135%

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Investment in Affiliates - Components of Investments in Affiliates (Detail) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Company Investment		$ 48,059	$ 47,482
Prosperity Metro Plaza
Schedule of Equity Method Investments [Line Items]
Reporting Segment		Northern Virginia
Ownership Interest		51.00%
Company Investment		$ 24,657	24,651
1750 H Street, NW
Schedule of Equity Method Investments [Line Items]
Reporting Segment		Washington, D.C.
Ownership Interest		50.00%
Company Investment		$ 15,367	14,834
Aviation Business Park
Schedule of Equity Method Investments [Line Items]
Reporting Segment		Maryland
Ownership Interest		50.00%
Company Investment		$ 5,867	5,748
RiversPark I and II
Schedule of Equity Method Investments [Line Items]
Reporting Segment		Maryland
Ownership Interest	[1]	25.00%
Company Investment	[1]	$ 2,168	$ 2,249

[1] RiversPark I and RiversPark II are owned through two separate joint ventures.

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Agreements

Our interest rate swap agreements are summarized below (dollars in thousands):

Maturity Date	Notional Amount		Interest Rate Contractual Component	Fixed LIBOR Interest Rate
July 2016	$	35,000	LIBOR	1.754	%
July 2016	25,000		LIBOR	1.763	%
July 2017	30,000		LIBOR	2.093	%
July 2017	30,000		LIBOR	2.093	%
July 2017	25,000		LIBOR	1.129	%
July 2017	12,500		LIBOR	1.129	%
July 2017	50,000		LIBOR	0.955	%
July 2018	12,500		LIBOR	1.383	%
July 2018	30,000		LIBOR	1.660	%
July 2018	25,000		LIBOR	1.394	%
July 2018	25,000		LIBOR	1.135	%
Total/Weighted Average	$	300,000		1.505	%

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

In accordance with accounting provisions and the fair value hierarchy described above, the following table shows the fair value of our consolidated assets and liabilities that are measured on a recurring basis as of June 30, 2015 and December 31, 2014 (dollars in thousands):

	Balance at    June 30, 2015		Level 1		Level 2		Level 3
Recurring Measurements:
Derivative instrument-swap liabilities	$	3,770	$	—	$	3,770	$	—
	Balance at    December 31, 2014		Level 1		Level 2		Level 3
Recurring Measurements:
Derivative instrument-swap assets	$	133	$	—	$	133	$	—
Derivative instrument-swap liabilities	3,569		—		3,569		—

Fair Value of Debt Instruments

The carrying amount and estimated fair value of our notes receivable and debt instruments are as follows (amounts in thousands):

	June 30, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Notes receivable(1)	$	34,000	$	34,000	$	63,679	$	63,720
Financial Liabilities:
Mortgage debt(2)(3)	$	302,582	$	293,426	$	308,637	$	292,882
Unsecured term loan	300,000		300,375		300,000		300,000
Unsecured revolving credit facility	152,000		152,034		205,000		205,000
Total	$	754,582	$	745,835	$	813,637	$	797,882

⁽¹⁾  The principal amount of our notes receivable was $34.0 million and $63.7 million at June 30, 2015 and December 31, 2014, respectively. On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan, which had an outstanding $29.7 million balance of the $30.0 million mezzanine loan that we provided them in April 2011.

⁽²⁾  Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We subsequently sold Rumsey Center on July 28, 2015.

⁽³⁾  The balances at December 31, 2014, include five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

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Description of Business

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Description of Business

Description of Business

First Potomac Realty Trust (the “Company”) is a leader in the ownership, management, development and redevelopment of office and business park properties in the greater Washington, D.C. region. The Company strategically focuses on acquiring and redeveloping properties that it believes can benefit from its intensive property management, leasing expertise, market knowledge and established relationships, and seeks to reposition these properties to increase their profitability and value. The Company’s portfolio primarily contains a mix of single-tenant and multi-tenant office properties and business parks. Office properties are single-story and multi-story buildings that are primarily for office use; and business parks contain buildings with office features combined with some industrial property space. The Company separates its properties into four distinct reporting segments, which it refers to as the Washington, D.C., Maryland, Northern Virginia and Southern Virginia reporting segments.

References in these unaudited condensed consolidated financial statements to “we,” “our,” “us,” the “Company” or “First Potomac,” refer to the Company and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

We conduct our business through our Operating Partnership. We are the sole general partner of, and, as of June 30, 2015, owned 100% of the preferred interest and 95.7% of the common interest in the Operating Partnership. The remaining common interests in the Operating Partnership, which are presented as noncontrolling interests in the Operating Partnership in the accompanying unaudited condensed consolidated financial statements, are limited partnership interests, some of which are owned by two of our executive officers and one of our trustees each of whom contributed certain properties and other assets to us upon our formation, and the remainder of which are owned by other unrelated parties.

At June 30, 2015, we wholly owned or had a controlling interest in properties totaling 8.0 million square feet and had a noncontrolling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures. We also owned land that can support 1.3 million square feet of additional development. Our consolidated properties were 89.1% occupied by 504 tenants at June 30, 2015. We did not include square footage that was in development or redevelopment, which totaled 0.2 million square feet at June 30, 2015, in our occupancy calculation. We derive substantially all of our revenue from leases of space within our properties. As of June 30, 2015, our largest tenant was the U.S. Government, which accounted for 13.4% of our total annualized cash basis rent, and the U.S. Government combined with government contractors, accounted for 25.5% of our total annualized cash basis rent as of June 30, 2015. We operate so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes.

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Equity (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Company's Allocation between Non-controlling Interests

Our equity and redeemable noncontrolling interests are as follows (dollars in thousands):

	First Potomac Realty Trust			Non-redeemable noncontrolling interests			Total Equity			Redeemable noncontrolling interests
Balance at December 31, 2014	$	710,007		$	898		$	710,905		$	33,332
Net income (loss)	1,195			(2		)	1,193			(225		)
Changes in ownership, net	3,219			—			3,219			(1,916		)
Distributions to owners	(23,811		)	(96		)	(23,907		)	(788		)
Other comprehensive loss	(314		)	—			(314		)	(14		)
Balance at June 30, 2015	$	690,296		$	800		$	691,096		$	30,389

	First Potomac Realty Trust			Non-redeemable noncontrolling interests		Total Equity			Redeemable noncontrolling interests
Balance at December 31, 2013	$	738,510		$	781	$	739,291		$	33,221
Net income	16,434			—		16,434			458
Changes in ownership, net	(886		)	161		(725		)	2,358
Distributions to owners	(23,786		)	—		(23,786		)	(789		)
Other comprehensive loss	(767		)	—		(767		)	(34		)
Balance at June 30, 2014	$	729,505		$	942	$	730,447		$	35,214

Company's Accumulated Other Comprehensive Loss

A summary of our accumulated other comprehensive loss is as follows (dollars in thousands):

	2015			2014
Beginning balance at January 1,	$	(3,268	)	$	(3,836	)
Net unrealized loss on derivative instruments	(328		)	(801		)
Net loss attributable to noncontrolling interests	14			34
Ending balance at June 30,	$	(3,582	)	$	(4,603	)

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Rental Property - Summary of Rental Property (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015		Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Rental property, net	$ 1,286,301	[1]	$ 1,288,873	[2]
Rental Property [Member]
Property, Plant and Equipment [Line Items]
Land and land improvements	322,538	[1]	325,214	[2]
Buildings and improvements	941,248	[1]	949,683	[2]
Construction in process	82,432	[1]	69,181	[2]
Tenant Improvements	172,931	[1]	159,867	[2]
Furniture, fixtures and equipment	420	[1]	427	[2]
Rental property, gross	1,519,569	[1]	1,504,372	[2]
Less: accumulated depreciation	(233,268)	[1]	(215,499)	[2]
Maryland Reporting Segment [Member] | Rental Property [Member]
Property, Plant and Equipment [Line Items]
Rental property, net	$ 10,900
Disposition Date Of Property	Jul. 28, 2015
Southern Virginia | Rental Property [Member]
Property, Plant and Equipment [Line Items]
Rental property, net			$ 57,700
Disposition Date Of Property	Mar. 19, 2015

[1] Excludes rental property totaling $10.9 million at June 30, 2015 related to Rumsey Center, which was classified as held-for-sale at June 30, 2015. The property was sold on July 28, 2015.

[2] Excludes rental property totaling $57.7 million at December 31, 2014 related to the sale of the Richmond Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2014 and was sold on March 19, 2015.

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Debt - Summary of Company's Mortgage Debt (Detail) - USD ($) $ in Thousands			3 Months Ended
		Jun. 05, 2013	Jun. 30, 2015		Dec. 31, 2014
Debt Instrument [Line Items]
Effective Interest Rate			0.19%
Total Mortgage Debt	[1]		$ 302,582	[2]	$ 308,637	[3]
Debt, Weighted Average Interest Rate	[4]		4.75%
Carrying amount of mortgages			$ 302,312		308,194
Effective Interest Rate			0.19%
LIBOR plus interest rate		2.50%	1.70%
Mortgage Loans
Debt Instrument [Line Items]
Carrying amount of mortgages					3,425
Jackson National Life Loan
Debt Instrument [Line Items]
Contractual Interest Rate	[5]		5.19%
Effective Interest Rate	[5]		5.19%
Maturity Date	[5]
Total Mortgage Debt	[5]		$ 56,251		64,943
Effective Interest Rate	[5]		5.19%
440 First Street, NW Construction Loan
Debt Instrument [Line Items]
Contractual Interest Rate			2.50%
Contractual Interest Rate	[6]		LIBOR + 2.50%
Maturity Date	[6]
Total Mortgage Debt	[6]		$ 32,216		32,216
Storey Park
Debt Instrument [Line Items]
Contractual Interest Rate			2.50%
Contractual Interest Rate	[6]		LIBOR + 2.50%
Maturity Date	[6]
Total Mortgage Debt	[6]		$ 22,000		22,000
Gateway Centre Manassas Building I
Debt Instrument [Line Items]
Contractual Interest Rate			7.35%
Effective Interest Rate			5.88%
Maturity Date
Total Mortgage Debt			$ 324		432
Effective Interest Rate			5.88%
Hillside I and II
Debt Instrument [Line Items]
Contractual Interest Rate			5.75%
Effective Interest Rate			4.62%
Maturity Date
Total Mortgage Debt			$ 12,745		12,949
Effective Interest Rate			4.62%
Redland Corporate Center Buildings II & III
Debt Instrument [Line Items]
Contractual Interest Rate			4.20%
Effective Interest Rate			4.64%
Maturity Date
Total Mortgage Debt			$ 65,186		65,816
Effective Interest Rate			4.64%
840 First Street, NE
Debt Instrument [Line Items]
Contractual Interest Rate			5.72%
Effective Interest Rate			6.01%
Maturity Date
Total Mortgage Debt			$ 36,217		36,539
Effective Interest Rate			6.01%
Battlefield Corporate Center
Debt Instrument [Line Items]
Contractual Interest Rate			4.26%
Effective Interest Rate			4.40%
Maturity Date
Total Mortgage Debt			$ 3,610		3,692
Effective Interest Rate			4.40%
One thousand two hundred eleven Connecticut Avenue NW. [Member]
Debt Instrument [Line Items]
Contractual Interest Rate			4.22%
Effective Interest Rate			4.47%
Maturity Date
Total Mortgage Debt			$ 29,404		29,691
Effective Interest Rate			4.47%
1401 K Street, NW
Debt Instrument [Line Items]
Contractual Interest Rate			4.80%
Effective Interest Rate			4.93%
Maturity Date
Total Mortgage Debt			$ 36,546		36,861
Effective Interest Rate			4.93%
Hanover Business Center Building D
Debt Instrument [Line Items]
Contractual Interest Rate	[7]		8.88%
Effective Interest Rate	[7]		6.63%
Maturity Date	[7]
Total Mortgage Debt	[7]		$ 0		104
Effective Interest Rate	[7]		6.63%
Chesterfield Business Center Buildings C,D,G and H
Debt Instrument [Line Items]
Contractual Interest Rate	[7]		8.50%
Effective Interest Rate	[7]		6.63%
Maturity Date	[7]
Total Mortgage Debt	[7]		$ 0		302
Effective Interest Rate	[7]		6.63%
Hanover Business Center Building C
Debt Instrument [Line Items]
Contractual Interest Rate	[7]		7.88%
Effective Interest Rate	[7]		6.63%
Maturity Date	[7]
Total Mortgage Debt	[7]		$ 0		505
Effective Interest Rate	[7]		6.63%
Buildings Abe And F
Debt Instrument [Line Items]
Contractual Interest Rate	[7]		7.45%
Effective Interest Rate	[7]		6.63%
Maturity Date	[7]
Total Mortgage Debt	[7]		$ 0		1,674
Effective Interest Rate	[7]		6.63%
Airpark Business Center
Debt Instrument [Line Items]
Contractual Interest Rate	[7]		7.45%
Effective Interest Rate	[7]		6.63%
Maturity Date	[7]
Total Mortgage Debt	[7]		$ 0		913
Effective Interest Rate	[7]		6.63%
Continuing Operations
Debt Instrument [Line Items]
Total Mortgage Debt			$ 294,499		305,139
Total unamortized fair value adjustments - Richmond			(270)		(370)
Carrying amount of mortgages			$ 294,229		304,769
Rumsey Center [Domain]
Debt Instrument [Line Items]
Contractual Interest Rate	[5]		5.19%
Effective Interest Rate	[5]		5.19%
Maturity Date	[5]
Total Mortgage Debt	[5]		$ 8,083		0
Effective Interest Rate	[5]		5.19%
Rumsey Center [Domain] | Mortgage Loans
Debt Instrument [Line Items]
Carrying amount of mortgages			$ 8,083
Richmond
Debt Instrument [Line Items]
Total Mortgage Debt					3,498
Total unamortized fair value adjustments - Richmond			$ 0		$ (73)

[1] At June 30, 2015, LIBOR was 0.19%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR.

[2] Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We sold Rumsey Center on July 28, 2015.

[3] The balance at December 31, 2014, includes five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

[4] Weighted average interest rate on total mortgage and construction debt.

[5] At June 30, 2015, the loan was secured by the following properties: Plaza 500, Van Buren Office Park, Rumsey Center, Snowden Center, Greenbrier Technology Center II and Norfolk Business Center. At June 30, 2015, $8.1 million of the $64.3 million outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. On July 21, 2015, we prepaid, without penalty, the outstanding balance on our Jackson National Life Loan, including the portion that was allocable to Rumsey Center, with a draw under our unsecured revolving credit facility. We subsequently sold Rumsey Center on July 28, 2015.

[6] At June 30, 2015, LIBOR was 0.19%.

[7] The mortgage loans and unamortized fair value adjustments that encumbered properties within the Richmond Portfolio were classified within “Liabilities held-for-sale” on our consolidated balance sheet at December 31, 2014. The loans were prepaid upon the sale of the Richmond Portfolio on March 19, 2015.

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015		Dec. 31, 2014
Assets:
Rental property, net	$ 1,286,301	[1]	$ 1,288,873	[2]
Assets held-for-sale	11,677		59,717
Cash and cash equivalents	12,735		13,323
Escrows and reserves	2,529		2,986
Accounts and other receivables, net of allowance for doubtful accounts of $1,350 and $1,207, respectively	11,656		10,587
Accrued straight-line rents, net of allowance for doubtful accounts of $97 and $104, respectively	38,986		34,226
Notes receivable, net	34,000		63,679
Investment in affiliates	48,059		47,482
Deferred costs, net	45,403		43,991
Prepaid expenses and other assets	6,117		7,712
Intangible assets, net	40,019		45,884
Total assets	1,537,482	[3],[4]	1,618,460
Liabilities:
Mortgage and Construction loans	294,499		305,139
Unsecured term loan	300,000		300,000
Unsecured revolving credit facility	152,000		205,000
Disposal Group, Including Discontinued Operation, Liabilities	8,307		4,562
Accounts payable and other liabilities	44,178		41,113
Accrued interest	1,657		1,720
Rents received in advance	6,942		7,971
Tenant security deposits	5,904		5,891
Deferred market rent, net	2,510		2,827
Total liabilities	815,997		874,223
Noncontrolling interests in the Operating Partnership	30,389		33,332
Equity:
Common shares, $0.001 par value, 150,000 shares authorized; 58,758 and 58,815 shares issued and outstanding, respectively	59		59
Additional paid-in capital	916,385		913,282
Noncontrolling interests in a consolidated partnership	800		898
Accumulated other comprehensive loss	(3,582)		(3,268)
Dividends in excess of accumulated earnings	(382,566)		(360,066)
Total equity	691,096		710,905
Total liabilities, noncontrolling interests and equity	1,537,482		1,618,460
Series A Preferred Shares
Equity:
Series A Preferred Shares, $25 per share liquidation preference, 6,400 shares issued and outstanding	$ 160,000		$ 160,000

[1] Excludes rental property totaling $10.9 million at June 30, 2015 related to Rumsey Center, which was classified as held-for-sale at June 30, 2015. The property was sold on July 28, 2015.

[2] Excludes rental property totaling $57.7 million at December 31, 2014 related to the sale of the Richmond Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2014 and was sold on March 19, 2015.

[3] Corporate assets not allocated to any of our reportable segments totaled $56,563 and $86,333 at June 30, 2015 and 2014, respectively.

[4] Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates.

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Investment in Affiliates - Net Assets of Company's Unconsolidated Joint Ventures (Detail) - USD ($) $ in Thousands		Jun. 30, 2015		Dec. 31, 2014		Jun. 30, 2014		Dec. 31, 2013
Assets:
Rental property, net		$ 1,286,301	[1]	$ 1,288,873	[2]
Cash and cash equivalents		12,735		13,323		$ 13,398		$ 8,740
Total assets		1,537,482	[3],[4]	1,618,460		$ 1,538,266	[3],[4]
Liabilities:
Total liabilities		815,997		874,223
Recourse mortgage debt		754,582		813,637
Unconsolidated Joint Ventures
Assets:
Rental property, net		193,861		193,533
Cash and cash equivalents		5,828		4,567
Other assets		15,635		16,748
Total assets		215,324		214,848
Liabilities:
Mortgage loans	[5]	110,000		110,000
Other liabilities		6,470		7,256
Total liabilities		116,470		117,256
Net assets		98,854		$ 97,592
Unconsolidated Entities
Liabilities:
Recourse mortgage debt		$ 2,800

[1] Excludes rental property totaling $10.9 million at June 30, 2015 related to Rumsey Center, which was classified as held-for-sale at June 30, 2015. The property was sold on July 28, 2015.

[2] Excludes rental property totaling $57.7 million at December 31, 2014 related to the sale of the Richmond Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2014 and was sold on March 19, 2015.

[3] Corporate assets not allocated to any of our reportable segments totaled $56,563 and $86,333 at June 30, 2015 and 2014, respectively.

[4] Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates.

[5] Of the total mortgage debt that encumbers our unconsolidated properties, $2.8 million is recourse to us. We believe the fair value of the potential liability to us under this guaranty is inconsequential as the likelihood of our need to perform under the debt agreement is remote.

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 968	$ 16,892
Discontinued operations:
Gain on sale of rental property	(857)	(1,338)
Depreciation and amortization	1,222	2,070
Depreciation and amortization	33,693	29,676
Stock based compensation	1,531	1,689
Bad debt expense	394	481
Amortization of deferred market rent	77	(55)
Amortization of financing costs and discounts	665	674
Equity in (earnings) losses of affiliates	(803)	28
Distributions from investments in affiliates	632	435
Gain (Loss) on Sale of Properties	0	21,230
Impairment of Real Estate	0	3,956
Changes in assets and liabilities:
Escrows and reserves	281	2,925
Accounts and other receivables	(1,555)	1,904
Accrued straight-line rents	(4,583)	(2,918)
Prepaid expenses and other assets	1,051	1,802
Tenant security deposits	(509)	240
Accounts payable and accrued expenses	2,123	(431)
Accrued interest	(63)	38
Rents received in advance	(1,330)	(436)
Deferred costs	(4,833)	(5,546)
Total adjustments	27,136	13,964
Net cash provided by operating activities	28,104	30,856
Cash flows from investing activities:
Investment in note receivable	0	(9,000)
Proceeds from sale of rental property	56,943	85,284
Principal payments from note receivable	29,720	90
Change In Escrow And Reserves	176	0
Additions to rental property and furniture, fixtures and equipment	(23,760)	(16,639)
Additions to construction in progress	(7,565)	(7,003)
Payments For Acquisition Of Rental Property And Associated Intangible Assets	0	(61,731)
Proceeds from Sale of Equity Method Investments	(405)	(590)
Net cash provided by (used in) investing activities	55,109	(9,589)
Cash flows from financing activities:
Financing costs	(108)	(405)
Issuance of debt	26,000	104,794
Repayments of debt	(84,883)	(96,697)
Dividends to common shareholders	(17,611)	(17,586)
Dividends to preferred shareholders	(6,200)	(6,200)
Contributions from consolidated joint venture partners	0	161
Distributions to consolidated joint venture partners	(96)	0
Distributions to noncontrolling interests	(788)	(789)
Operating partnership unit redemptions	(134)	0
Proceeds from stock option exercises	19	113
Net cash used in financing activities	(83,801)	(16,609)
Net (decrease) increase in cash and cash equivalents	(588)	4,658
Cash and cash equivalents, beginning of period	13,323	8,740
Cash and cash equivalents, end of period	12,735	13,398
Cash paid for interest, net	12,877	10,946
Non-cash investing and financing activities:
Noncash or Part Noncash Acquisition, Debt Assumed	0	37,269
Shares Tendered By Employees For Statutory Tax Withholdings Upon Issuance Of Common Stock	454	383
Issuance of common Operating Partnership units in connection with the acquisition of rental property	(1,783)	2,318
Changes in accruals:	0	40
Changes in accruals:
Additions to rental property and furniture, fixtures and equipment	(967)	(1,571)
Additions to development and redevelopment	$ 3,266	$ (426)

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Fair Value Measurements - Additional Information (Detail) - Jun. 30, 2015 $ in Thousands	USD ($) Interest_Rate_Swaps snapshot
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held	11
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Notional Amount	$ 300,000
Minimum number of daily snapshot used for valuation of interest rate swap agreements | snapshot	7,500

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Description of Business - Additional Information (Detail)		3 Months Ended
		Jun. 30, 2015 ft² JointVenture Person Integer Executives segment	Jun. 30, 2014 ft²	[2]
Real Estate Properties [Line Items]
Number of Reportable Segments | segment		4
Operating Partnership in preferred		100.00%
Interest in Operating Partnership		95.70%
Number of officers who owned limited partnership interests | Executives		2
Number of Trustees Owning Interest in Limited Partnership | Integer		1
Area of real estate property	[1]	7,957,016	8,700,651
Unconsolidated joint ventures | JointVenture		5
Square footage of land for additional development		1,300,000
Occupancy rate in the Company's consolidated properties		89.10%
Number of tenants representing current occupancy rate | Person		504
Square footage in development or redevelopment not included on occupancy calculation		200,000
Percent of Annualized Cash Rent		25.50%
Wholly-owned Properties [Member]
Real Estate Properties [Line Items]
Number of Reportable Segments | Integer		4
Area of real estate property		8,000,000
Unconsolidated Properties [Member]
Real Estate Properties [Line Items]
Area of real estate property		900,000
US Government [Member]
Real Estate Properties [Line Items]
Percent of Annualized Cash Rent		13.40%

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

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Share-Based Payments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Award, Shares Purchased for Award	31,218
Non-Vested Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense associated with trustee share based awards	$ 0.7	$ 0.7	$ 1.3	$ 1.4
Unrecognized compensation cost related to non-vested shares	$ 3.7		$ 3.7
Weighted-average period for recognition of non-vested shares	2 years

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

Our unaudited condensed consolidated financial statements include our accounts and the accounts of our Operating Partnership and the subsidiaries in which we or our Operating Partnership has a controlling interest, which includes First Potomac Management LLC, a wholly-owned subsidiary that manages the majority of our properties. All intercompany balances and transactions have been eliminated in consolidation.

We have condensed or omitted certain information and note disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”) in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2014 and as updated from time to time in our other filings with the SEC.

In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals necessary to present fairly our financial position as of June 30, 2015, the results of our operations and our comprehensive income for the three and six months ended June 30, 2015 and 2014 and our cash flows for the six months ended June 30, 2015 and 2014. Interim results are not necessarily indicative of full-year performance due, in part, to the timing of transactions and the impact of acquisitions and dispositions throughout the year as well as the seasonality of certain operating expenses such as utilities expense and snow and ice removal costs.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires our management team to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Estimates include the amount of accounts receivable that may be uncollectible, recoverability of notes receivable, future cash flows, discount and capitalization rate assumptions used to fair value acquired properties and to test impairment of certain long-lived assets and goodwill; derivative valuations; market lease rates, lease-up periods, leasing and tenant improvement costs used to fair value intangible assets acquired and probability weighted cash flow analysis used to fair value contingent liabilities. Actual results could differ from those estimates.

Rental Property

Rental Property

Rental property is initially recorded at fair value, when acquired in a business combination, or initial cost when constructed or acquired in an asset purchase. Improvements and replacements are capitalized at cost when they extend the useful life, increase capacity or improve the efficiency of the asset. Repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of our assets, by class, are as follows:

Buildings	39 years
Building improvements	5 to 20 years
Furniture, fixtures and equipment	5 to 15 years
Lease related intangible assets	The term of the related lease
Tenant improvements	Shorter of the useful life of the asset or the term of the related lease

We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of the carrying value of a property, an impairment analysis is performed. We assess potential impairments based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the property’s use and eventual disposition. This estimate is based on projections of future revenues, expenses, capital improvement costs to maintain the operating capacity, expected holding periods and capitalization rates. These cash flows consider factors such as expected market trends and leasing prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a real estate investment based on forecasted undiscounted cash flows, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. Further, we will record an impairment loss if we expect to dispose of a property in the near term, at a price below carrying value. In such an event, we will record an impairment loss based on the difference between a property’s carrying value and its projected sales price less any estimated costs to sell.

We will classify a building as held-for-sale in accordance with GAAP in the period in which we have made the decision to dispose of the building, our Board of Trustees or a designated delegate has approved the sale, there is a high likelihood a binding agreement to purchase the property will be signed under which the buyer will be required to commit a significant amount of nonrefundable cash and no significant financing contingencies exist that could cause the transaction not to be completed in a timely manner. We will cease recording depreciation on a building once it has been classified as held-for-sale. In the second quarter of 2014, we prospectively adopted Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which impacts the presentation of operations and gains or losses from disposed properties and properties classified as held-for-sale. ASU 2014-08 states that a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations or financial results. The operations of all properties that were sold prior to the adoption of ASU 2014-08, two properties (West Park and Patrick Center) that were classified as held-for-sale in previously issued financial statements prior to our adoption of ASU 2014-08 and were subsequently sold, as well as our Richmond, Virginia portfolio, which included Chesterfield Business Center, Hanover Business Center, Park Central, Virginia Technology Center and a three-acre parcel of undeveloped land (the “Richmond Portfolio”), are reflected within discontinued operations in our consolidated statements of operations for all periods presented.

If the building does not qualify as a discontinued operation under ASU 2014-08, we will classify the building's operating results, together with any impairment charges and any gains or losses on the sale of the building, in continuing operations for all periods presented in our consolidated statements of operations. We will classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheet for the period the held-for-sale criteria were met.

If the building does qualify as a discontinued operation under ASU 2014-08, we will classify the building's operating results, together with any impairment charges and any gains or losses on the sale of the building, in discontinued operations in our consolidated statements of operations for all periods presented and classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheets for the periods presented. Interest expense is reclassified to discontinued operations only to the extent the disposed or held-for-sale property is secured by specific mortgage debt and the mortgage debt will not be assigned to another property owned by us after the disposition.

We recognize the fair value, if sufficient information exists to reasonably estimate the fair value, of any liability for conditional asset retirement obligations when assumed or incurred, which is generally upon acquisition, construction, development or redevelopment and/or through the normal operation of the asset.

We capitalize interest costs incurred on qualifying expenditures for real estate assets under development or redevelopment, which include our investments in assets owned through unconsolidated joint ventures that are under development or redevelopment, while being readied for their intended use in accordance with accounting requirements regarding capitalization of interest. We will capitalize interest when qualifying expenditures for the asset have been made, activities necessary to get the asset ready for its intended use are in progress and interest costs are being incurred. Capitalized interest also includes interest associated with expenditures incurred to acquire developable land while development activities are in progress. We also capitalize direct compensation costs of our construction personnel who manage the development and redevelopment projects, but only to the extent the employee’s time can be allocated to a project. Any portion of construction management costs not directly attributable to a specific project are recognized as general and administrative expense in the period incurred. We do not capitalize any other general and administrative costs such as office supplies, office rent expense or an overhead allocation to our development or redevelopment projects. Capitalized compensation costs were immaterial for the six months ended June 30, 2015 and 2014. Capitalization of interest ends when the asset is substantially complete and ready for its intended use, but no later than one year from completion of major construction activity, if the property is not occupied. We place redevelopment and development assets into service at this time and commence depreciation upon the substantial completion of tenant improvements and the recognition of revenue. Capitalized interest is depreciated over the useful life of the underlying assets, commencing when those assets are placed into service.

Notes Receivable

Notes Receivable

We provide loans to the owners of real estate properties, which can be collateralized by interest in the real estate property. We record these loans as “Notes receivable, net” in our consolidated balance sheets. The loans are recorded net of any discount or issuance costs, which are amortized over the life of the respective note receivable using the effective interest method. We record interest earned from notes receivable and amortization of any discount costs or issuance costs within “Interest and other income” in our consolidated statements of operations.

We will establish a provision for anticipated credit losses associated with our notes receivable when we anticipate that we may be unable to collect any contractually due amounts. This determination is based upon such factors as delinquencies, loss experience, collateral quality and current economic or borrower conditions. Our collectability of our notes receivable may be adversely impacted by the financial stability of the Washington, D.C. region and the ability of the underlying assets to keep current tenants or attract new tenants. Estimated losses are recorded as a charge to earnings to establish an allowance for credit losses that we estimate to be adequate based on these factors. Based on the review of the above criteria, we did not record an allowance for credit losses for our notes receivable during the six months ended June 30, 2015 and 2014.

Application of New Accounting Standards

Application of New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of ASU 2014-09 from January 1, 2017 to January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements or related disclosures.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”), which requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The guidance will become effective January 1, 2017. The adoption of ASU 2014-15 is not expected to have an impact on our consolidated financial statements or related disclosures.

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ("ASU 2015-01"), which eliminates the concept of extraordinary items from GAAP and the requirement that an entity separately report extraordinary items in the income statement. ASU 2015-01 also requires that entities continue to evaluate whether items are unusual in nature or infrequent in occurrence for presentation and disclosure purposes. ASU 2015-01 applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted and the guidance may be applied prospectively or retrospectively to all prior periods presented in the consolidated financial statements. The adoption of ASU 2015-01 is not expected to have a material impact on our consolidated financial statements or related disclosures.

In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”), which makes certain changes to both the variable interest model and the voting model, including changes to the identification of variable interests (fees paid to a decision maker or service provider), the variable interest entity characteristics for a limited partnership or similar entity and the primary beneficiary determination. ASU 2015-02 is effective January 1, 2016. The adoption of ASU 2015-02 is not expected to have a material impact on our consolidated financial statements or related disclosures.

In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is effective for periods beginning after December 15, 2015 with early adoption permitted and will be applied on a retrospective basis. The guidance will be effective on January 1, 2016 and is not expected to have a material impact on our consolidated financial statements or related disclosures.

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation as a result of reclassifying the operating results of several properties as discontinued operations. For more information, see note 7, Dispositions.

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Summary of Significant Accounting Policies - Estimated Useful Lives of Company's Assets, by Class (Detail) - Jun. 30, 2015	Total	Total
Property, Plant and Equipment [Line Items]
Lease related intangible assets		The term of the related lease
Tenant improvements		Shorter of the useful life of the asset or the term of the related lease
Buildings
Property, Plant and Equipment [Line Items]
Useful life		39 years
Minimum [Member] | Building improvements
Property, Plant and Equipment [Line Items]
Useful life	5 years
Minimum [Member] | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful life	5 years
Maximum | Building improvements
Property, Plant and Equipment [Line Items]
Useful life	20 years
Maximum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful life	15 years

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Computation of Company's Basic and Diluted Earnings Per Share

The following table sets forth the computation of our basic and diluted earnings per common share (amounts in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Numerator for basic and diluted earnings per common share:
Income from continuing operations	$	476		$	16,796		$	1,575		$	16,211
Income (loss) from discontinued operations	—			1,538			(607		)	681
Net income	476			18,334			968			16,892
Less: Net loss (income) from continuing operations attributable to noncontrolling interests	114			(582		)	201			(429		)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests	—			(70		)	26			(29		)
Net income attributable to First Potomac Realty Trust	590			17,682			1,195			16,434
Less: Dividends on preferred shares	(3,100		)	(3,100		)	(6,200		)	(6,200		)
Net (loss) income attributable to common shareholders	(2,510		)	14,582			(5,005		)	10,234
Less: Allocation to participating securities	(69		)	(77		)	(142		)	(155		)
Net (loss) income attributable to common shareholders	$	(2,579	)	$	14,505		$	(5,147	)	$	10,079
Denominator for basic and diluted earnings per common share:
Weighted average common shares outstanding:
Basic	58,280			58,146			58,241			58,122
Diluted	58,280			58,220			58,241			58,190
Basic and diluted earnings per common share:
(Loss) income from continuing operations	$	(0.04	)	$	0.22		$	(0.08	)	$	0.16
Income (loss) from discontinued operations	—			0.03			(0.01		)	0.01
Net (loss) income	$	(0.04	)	$	0.25		$	(0.09	)	$	0.17

Anti-Dilutive Shares Not Included in Calculation of Diluted Earnings Per Share

In accordance with GAAP regarding earnings per common share, we did not include the following potential weighted average common shares in our calculation of diluted earnings per common share as they are anti-dilutive for the periods presented (amounts in thousands):

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2015	2014	2015	2014
Stock option awards	1,046	1,145	1,069	1,170
Non-vested share awards	405	400	450	419
Series A Preferred Shares(1)	14,868	12,296	13,965	12,480
	16,319	13,841	15,484	14,069

⁽¹⁾  Our Series A Preferred Shares are only convertible into our common shares upon certain changes in control of our Company. The dilutive shares are calculated as the daily average of the face value of the Series A Preferred Shares divided by the outstanding common share price.

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Segment Information - Summary of Segment Information (Detail) $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 30, 2015 USD ($) ft² Integer		Jun. 30, 2014 USD ($) ft² Integer		Jun. 30, 2015 USD ($) ft² Integer		Jun. 30, 2014 USD ($) ft² Integer		Dec. 31, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of buildings | Integer	[1]	112		134	[2]	112		134	[2]
Square feet | ft²	[1]	7,957,016		8,700,651	[2]	7,957,016		8,700,651	[2]
Total revenues		$ 43,039		$ 39,307		$ 86,888		$ 78,671
Property operating expense		(10,661)		(10,224)		(23,775)		(22,261)
Real estate taxes and insurance		(4,811)		(4,241)		(9,854)		(8,373)
Total property operating income		27,567		24,842		53,259		48,037
Depreciation and amortization expense		(16,817)		(14,829)		(33,151)		(29,139)
General and administrative		(4,979)		(5,218)		(10,505)		(10,414)
Acquisition costs		0		(1,111)		0		(1,179)
Impairment Of Properties		0		(3,956)		0		(3,956)
Other income		(5,295)		17,068		(8,028)		12,862
Income from discontinued operations		0		(1,538)		607		(681)
Net income		476		18,334		968		16,892
Total assets		1,537,482	[3],[4]	1,538,266	[3],[4]	1,537,482	[3],[4]	1,538,266	[3],[4]	$ 1,618,460
Capital expenditure	[5]	12,083		12,249		31,325		23,642
Capital expenditures for corporate assets not allocated to any reportable segments		0		361		309		638
Corporate assets not allocated to any reportable segments		$ 56,563		$ 86,333		$ 56,563		$ 86,333
Washington, D.C.
Segment Reporting Information [Line Items]
Number of buildings | Integer	[1]	6		5	[2]	6		5	[2]
Square feet | ft²	[1]	914,912		649,107	[2]	914,912		649,107	[2]
Total revenues		$ 11,154		$ 7,827		$ 22,186		$ 14,767
Property operating expense		(2,987)		(2,407)		(6,126)		(4,393)
Real estate taxes and insurance		(1,956)		(1,247)		(3,979)		(2,301)
Total property operating income		6,211		4,173		12,081		8,073
Total assets	[3],[4]	505,270		410,000		505,270		410,000
Capital expenditure	[5]	$ 3,983		$ 4,901		$ 7,419		$ 11,382
Maryland
Segment Reporting Information [Line Items]
Number of buildings | Integer	[1]	38		42	[2]	38		42	[2]
Square feet | ft²	[1]	1,997,789		2,178,379	[2]	1,997,789		2,178,379	[2]
Total revenues		$ 11,034		$ 11,227		$ 22,739		$ 22,872
Property operating expense		(2,645)		(2,427)		(6,663)		(6,373)
Real estate taxes and insurance		(896)		(975)		(1,788)		(1,978)
Total property operating income		7,493		7,825		14,288		14,521
Total assets	[3],[4]	357,422		374,416		357,422		374,416
Capital expenditure	[5]	$ 2,153		$ 2,701		$ 4,317		$ 5,091
Northern Virginia
Segment Reporting Information [Line Items]
Number of buildings | Integer	[1]	49		49	[2]	49		49	[2]
Square feet | ft²	[1]	3,020,388		3,021,597	[2]	3,020,388		3,021,597	[2]
Total revenues		$ 13,700		$ 13,146		$ 27,815		$ 26,813
Property operating expense		(3,191)		(3,107)		(7,257)		(7,083)
Real estate taxes and insurance		(1,345)		(1,465)		(2,894)		(2,989)
Total property operating income		9,164		8,574		17,664		16,741
Total assets	[3],[4]	$ 450,367		438,254		450,367		438,254
Capital expenditure	[5]			$ 1,537		$ 15,880		$ 2,359
Southern Virginia
Segment Reporting Information [Line Items]
Number of buildings | Integer	[1]	19		38	[2]	19		38	[2]
Square feet | ft²	[1]	2,023,927		2,851,568	[2]	2,023,927		2,851,568	[2]
Total revenues		$ 7,151		$ 7,107		$ 14,148		$ 14,219
Property operating expense		(1,838)		(2,283)		(3,729)		(4,412)
Real estate taxes and insurance		(614)		(554)		(1,193)		(1,105)
Total property operating income		4,699		4,270		9,226		8,702
Total assets	[3],[4]	167,860		229,263		167,860		229,263
Capital expenditure	[5]	910		$ 2,749		$ 3,400		$ 4,172
Northern Virginia
Segment Reporting Information [Line Items]
Capital expenditure	[5]	$ 5,037

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

[3] Corporate assets not allocated to any of our reportable segments totaled $56,563 and $86,333 at June 30, 2015 and 2014, respectively.

[4] Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates.

[5] Capital expenditures for corporate assets not allocated to any of our reportable segments totaled none and $361 for the three months ended June 30, 2015 and 2014, respectively, and $309 and $638 for the six months ended June 30, 2015 and 2014, respectively.

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Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Capitalized interest on indebtedness paid in cash	$ 900	$ 1,800
Surrendered common shares to satisfy statutory minimum federal income tax obligations	454	383
Change in redemption value, noncontrolling interest	$ 3,000	5,600
Operating Partnership units issued for acquisition	0
Furniture and Fixtures [Member]
Accrued capital expenditure	$ 8,300	6,600
Development and Redevelopment [Member]
Accrued capital expenditure	$ 4,600	$ 1,000
840 First Street, NE [Member]
Operating Partnership units issued for acquisition		3,125
Operating Partnership units fair valued		$ 40

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, accounts and other receivables	$ 1,350	$ 1,207
Allowance for doubtful accounts, accrued straight-line rents	$ 97	$ 104
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Series A Preferred Shares liquidation preference	$ 25	$ 25
Series A Preferred Shares, shares issued	6,400,000	6,400,000
Series A Preferred Shares, shares outstanding	6,400,000	6,400,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	58,758,000	58,815,000
Common stock, shares outstanding	58,758,000	58,815,000

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Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Our application of GAAP outlines a valuation framework and creates a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The required disclosures increase the consistency and comparability of fair value measurements and the related disclosures. Fair value is identified, under the standard, as the price that would be received to sell an asset or paid to transfer a liability between willing third parties at the measurement date (an exit price). In accordance with GAAP, certain assets and liabilities must be measured at fair value, and we provide the necessary disclosures that are required for items measured at fair value as outlined in the accounting requirements regarding fair value.

Financial assets and liabilities, as well as those non-financial assets and liabilities requiring fair value measurement, are measured using inputs from three levels of the fair value hierarchy.

The three levels are as follows:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability.

In accordance with accounting provisions and the fair value hierarchy described above, the following table shows the fair value of our consolidated assets and liabilities that are measured on a recurring basis as of June 30, 2015 and December 31, 2014 (dollars in thousands):

	Balance at    June 30, 2015		Level 1		Level 2		Level 3
Recurring Measurements:
Derivative instrument-swap liabilities	$	3,770	$	—	$	3,770	$	—
	Balance at    December 31, 2014		Level 1		Level 2		Level 3
Recurring Measurements:
Derivative instrument-swap assets	$	133	$	—	$	133	$	—
Derivative instrument-swap liabilities	3,569		—		3,569		—

We did not have any assets or liabilities that were measured on a non-recurring basis at June 30, 2015 and December 31, 2014. We did not re-measure or complete any transactions involving non-financial assets or non-financial liabilities that are measured at fair value on a recurring basis during the six months ended June 30, 2015 and 2014. Also, no transfers into or out of fair value measurement levels for assets or liabilities that are measured on a recurring basis occurred during the six months ended June 30, 2015 and 2014.

Interest Rate Derivatives

At June 30, 2015, we had hedged $300.0 million of our variable rate debt through eleven interest rate swap agreements. See note 9, Derivative Instruments, for more information about our interest rate swap agreements.

The interest rate derivatives are fair valued based on prevailing market yield curves on the measurement date and also incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual inputs and guarantees. We use a third party to assist in valuing our interest rate swap agreements. A daily “snapshot” of the market is taken to obtain close of business rates. The snapshot includes over 7,500 rates including LIBOR fixings, Eurodollar futures, swap rates, exchange rates, treasuries, etc. This market data is obtained via direct feeds from Bloomberg and Reuters and from Inter-Dealer Brokers. The selected rates are compared to their historical values. Any rate that has changed by more than normal mean and related standard deviation would be considered an outlier and flagged for further investigation. The rates are then compiled through a valuation process that generates daily valuations, which are used to value our interest rate swap agreements. Our interest rate swap derivatives are effective cash flow hedges and the effective portion of the change in fair value is recorded in the equity section of our consolidated balance sheets as “Accumulated other comprehensive loss.”

Financial Instruments

The carrying amounts of cash equivalents, accounts and other receivables, accounts payable and other liabilities, with the exception of any items listed above, approximate their fair values due to their short-term maturities. We determine the fair value of our notes receivable and debt instruments by discounting future contractual principal and interest payments using prevailing market rates for securities with similar terms and characteristics at the balance sheet date. We deem the fair value measurement of our debt instruments as a Level 2 measurement as we use quoted interest rates for similar debt instruments to value our debt instruments. We use quoted market interest rates for similar notes to value our notes receivable, which we consider a Level 2 measurement as we do not believe notes receivable trade in an active market.

The carrying amount and estimated fair value of our notes receivable and debt instruments are as follows (amounts in thousands):

	June 30, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Notes receivable(1)	$	34,000	$	34,000	$	63,679	$	63,720
Financial Liabilities:
Mortgage debt(2)(3)	$	302,582	$	293,426	$	308,637	$	292,882
Unsecured term loan	300,000		300,375		300,000		300,000
Unsecured revolving credit facility	152,000		152,034		205,000		205,000
Total	$	754,582	$	745,835	$	813,637	$	797,882

⁽¹⁾  The principal amount of our notes receivable was $34.0 million and $63.7 million at June 30, 2015 and December 31, 2014, respectively. On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan, which had an outstanding $29.7 million balance of the $30.0 million mezzanine loan that we provided them in April 2011.

⁽²⁾  Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We subsequently sold Rumsey Center on July 28, 2015.

⁽³⁾  The balances at December 31, 2014, include five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 29, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	FIRST POTOMAC REALTY TRUST
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001254595
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		58,758,040

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Equity

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Equity

Equity

In July 2015, our Board of Trustees authorized a share repurchase program that allows us to acquire up to five million of our common shares of beneficial interest from time to time over the next twelve months in open market transactions at prevailing prices or in negotiated private transactions. As of the date of this filing, we had 58.8 million common shares outstanding. We are not obligated to acquire any particular amount of common shares and the share repurchase program may be suspended by the Board of Trustees at any time.

On July 28, 2015, we declared a dividend of $0.15 per common share, equating to an annualized dividend of $0.60 per common share. The dividend will be paid on August 17, 2015 to common shareholders of record as of August 10, 2015. We also declared a dividend of $0.484375 per share on our Series A Preferred Shares. The dividend will be paid on August 17, 2015 to preferred shareholders of record as of August 10, 2015. Dividends on all non-vested share awards are recorded as a reduction of shareholders’ equity. For each dividend paid by us on our common and preferred shares, the Operating Partnership distributes an equivalent distribution on our common and preferred Operating Partnership units, respectively.

On April 28, 2015, we declared a dividend of $0.15 per common share, equating to an annualized dividend of $0.60 per common share. The dividend was paid on May 15, 2015 to common shareholders of record as of May 8, 2015. We also declared a dividend of $0.484375 per share on our Series A Preferred Shares. The dividend was paid on May 15, 2015 to preferred shareholders of record as of May 8, 2015.

Our unsecured revolving credit facility, unsecured term loan, the Construction Loan and the Storey Park land loan contain certain restrictions that include, among other things, requirements to maintain specified coverage ratios and other financial covenants, which may limit our ability to make distributions to our common and preferred shareholders. Further, distributions with respect to our common shares are subject to our ability to first satisfy our obligations to pay distributions to the holders of our Series A Preferred Shares.

As a result of the redemption feature of the Operating Partnership units, the noncontrolling interests associated with the Operating Partnership are recorded outside of permanent equity. Our equity and redeemable noncontrolling interests are as follows (dollars in thousands):

	First Potomac Realty Trust			Non-redeemable noncontrolling interests			Total Equity			Redeemable noncontrolling interests
Balance at December 31, 2014	$	710,007		$	898		$	710,905		$	33,332
Net income (loss)	1,195			(2		)	1,193			(225		)
Changes in ownership, net	3,219			—			3,219			(1,916		)
Distributions to owners	(23,811		)	(96		)	(23,907		)	(788		)
Other comprehensive loss	(314		)	—			(314		)	(14		)
Balance at June 30, 2015	$	690,296		$	800		$	691,096		$	30,389

	First Potomac Realty Trust			Non-redeemable noncontrolling interests		Total Equity			Redeemable noncontrolling interests
Balance at December 31, 2013	$	738,510		$	781	$	739,291		$	33,221
Net income	16,434			—		16,434			458
Changes in ownership, net	(886		)	161		(725		)	2,358
Distributions to owners	(23,786		)	—		(23,786		)	(789		)
Other comprehensive loss	(767		)	—		(767		)	(34		)
Balance at June 30, 2014	$	729,505		$	942	$	730,447		$	35,214

A summary of our accumulated other comprehensive loss is as follows (dollars in thousands):

	2015			2014
Beginning balance at January 1,	$	(3,268	)	$	(3,836	)
Net unrealized loss on derivative instruments	(328		)	(801		)
Net loss attributable to noncontrolling interests	14			34
Ending balance at June 30,	$	(3,582	)	$	(4,603	)

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Rental	$ 34,844	$ 31,619	$ 69,224	$ 62,052
Tenant reimbursements and other	8,195	7,688	17,664	16,619
Total revenues	43,039	39,307	86,888	78,671
Operating expenses:
Property operating	10,661	10,224	23,775	22,261
Real estate taxes and insurance	4,811	4,241	9,854	8,373
General and administrative	4,979	5,218	10,505	10,414
Acquisition costs	0	1,111	0	1,179
Depreciation and amortization	16,817	14,829	33,151	29,139
Impairment of rental property	0	3,956	0	3,956
Total operating expenses	37,268	39,579	77,285	75,322
Operating income (loss)	5,771	(272)	9,603	3,349
Other expenses (income)
Interest expense	6,725	6,031	13,633	11,768
Interest and other income	(974)	(1,670)	(4,802)	(3,428)
Equity in (earnings) losses of affiliates	(456)	(199)	(803)	28
Gain on sale of rental property	0	(21,230)	0	(21,230)
Total other expenses (income)	5,295	(17,068)	8,028	(12,862)
Income from continuing operations	476	16,796	1,575	16,211
Discontinued operations:
Income (loss) from operations	0	254	(975)	(657)
Loss on debt extinguishment	0	0	(489)	0
Gain on sale of rental property	0	1,284	857	1,338
Income (loss) from discontinued operations	0	1,538	(607)	681
Net income	476	18,334	968	16,892
Less: Net loss (income) attributable to noncontrolling interests	114	(652)	227	(458)
Net income attributable to First Potomac Realty Trust	590	17,682	1,195	16,434
Less: Dividends on preferred shares	(3,100)	(3,100)	(6,200)	(6,200)
Net (loss) income attributable to common shareholders	$ (2,510)	$ 14,582	$ (5,005)	$ 10,234
Basic and diluted earnings per common share:
(Loss) income from continuing operations	$ (0.04)	$ 0.22	$ (0.08)	$ 0.16
Income (loss) from discontinued operations	0.00	0.03	(0.01)	0.01
Net (loss) income	$ (0.04)	$ 0.25	$ (0.09)	$ 0.17
Weighted average common shares outstanding:
Basic	58,280	58,146	58,241	58,122
Diluted	58,280	58,220	58,241	58,190

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Notes Receivable

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Notes Receivable

Notes Receivable

Below is a summary of our notes receivable for our outstanding mezzanine loans (dollars in thousands):

	Balance at June 30, 2015
Property	Face Amount		Unamortized Origination Fees		Balance		Interest Rate
950 F Street, NW	$	34,000	$	—	$	34,000	9.75	%

	Balance at December 31, 2014
Property	Face Amount		Unamortized Origination Fees			Balance		Interest Rate
950 F Street, NW	$	34,000	$	—		$	34,000	9.75	%
America’s Square	29,720		(41		)	29,679		9.0	%
	$	63,720	$	(41	)	$	63,679

On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan that had an outstanding balance of $29.7 million. We provided the owners of America’s Square a $30.0 million loan in April 2011, which was secured by a portion of the owner’s interest in the property. The loan had a fixed-interest rate of 9.0% and was scheduled to mature on May 1, 2016. We received a yield maintenance payment of $2.4 million with the repayment of the loan. The proceeds from the loan repayment, including the yield maintenance payment, were used to pay down a portion of the outstanding balance of our unsecured revolving credit facility.

In December 2010, we provided a $25.0 million mezzanine loan to the owners of 950 F Street, NW, a ten-story, 287,000 square-foot office/retail building located in Washington, D.C. that is secured by a portion of the owners’ interest in the property. The loan requires monthly interest-only payments with a constant interest rate over the life of the loan. On January 10, 2014, we amended the loan to increase the outstanding balance to $34.0 million and reduce the fixed interest rate from 12.5% to 9.75%. The amended mezzanine loan matures on April 1, 2017 and is repayable in full on or after December 21, 2015. The $9.0 million increase in the loan was provided by a draw under our unsecured revolving credit facility.

We recorded interest income related to our notes receivable of $0.8 million and $2.0 million for the three and six months ended June 30, 2015, respectively, and $1.5 million and $3.0 million for the three and six months ended June 30, 2014, respectively, which is included within “Interest and other income” in our consolidated statements of operations.

We recorded no income from the amortization of origination fees for the three months ended June 30, 2015 and $5 thousand for the six months ended June 30, 2015. We recorded $7 thousand and $18 thousand of income from the amortization of origination fees for the three and six months ended June 30, 2014, respectively. During the first quarter of 2014, we wrote-off $0.1 million of unamortized fees related to the original 950 F Street, NW mezzanine loan. We recorded income from the yield maintenance payment of $2.4 million during the first quarter of 2015. The yield maintenance payment and the amortization and write-off of unamortized fees are recorded within “Interest and other income” in our consolidated statements of operations.

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Rental Property

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

Rental Property

Rental Property

Rental property represents buildings and related improvements, net of accumulated depreciation, and developable land that are wholly owned or owned by an entity in which we have a controlling interest. All of our rental properties are located within the greater Washington, D.C. region. Rental property consists of the following (dollars in thousands):

	June 30, 2015(1)			December 31, 2014(2)
Land and land improvements	$	322,538		$	325,214
Buildings and improvements	941,248			949,683
Construction in progress	82,432			69,181
Tenant improvements	172,931			159,867
Furniture, fixtures and equipment	420			427
	1,519,569			1,504,372
Less: accumulated depreciation	(233,268		)	(215,499		)
	$	1,286,301		$	1,288,873

⁽¹⁾ Excludes rental property totaling $10.9 million at June 30, 2015 related to Rumsey Center, which was classified as held-for-sale at June 30, 2015. The property was sold on July 28, 2015.

⁽²⁾ Excludes rental property totaling $57.7 million at December 31, 2014 related to the sale of the Richmond Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2014 and was sold on March 19, 2015.

Development and Redevelopment Activity

We will place completed development and redevelopment assets in service upon the earlier of one year after major construction activity is deemed to be substantially complete or upon occupancy. We construct office buildings and/or business parks on a build-to-suit basis or with the intent to lease upon completion of construction. We own developable land that can accommodate 1.3 million square feet of additional building space, of which, 0.7 million is located in the Washington, D.C. reporting segment, 0.1 million in the Maryland reporting segment, 0.4 million in the Northern Virginia reporting segment and 0.1 million in the Southern Virginia reporting segment.

During the third quarter of 2014, we signed a lease for 167,000 square feet at a to-be-constructed building in our Northern Virginia reporting segment on vacant land that we have in our portfolio. We currently expect to complete construction of the new building in the fourth quarter of 2016. At June 30, 2015, our total investment in the development project was $16.4 million, which included the original cost basis of the applicable portion of the vacant land of $5.2 million. The majority of the costs incurred as of June 30, 2015 in excess of the original cost basis of the land relate to design and permit fees, site preparation costs, foundation work and beginning the superstructure.

On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment. At the time, the site was leased to Greyhound Lines, Inc. (“Greyhound”), which subsequently relocated its operations. Greyhound’s lease expired on August 31, 2013, at which time the property was placed into development. The joint venture anticipates developing a mixed-use project on the 1.6 acre site, which can accommodate up to 712,000 square feet. At June 30, 2015, our total investment in the development project was $56.7 million, which included the original cost basis of the property of $43.3 million. The majority of the costs in excess of the original cost basis relate to capitalized architectural fees and site preparation costs. We are currently exploring our options related to this property; however, until a definitive plan for the property has been reached and we begin significant development activities, we cannot determine the total cost of the project or the anticipated completion date.

On December 28, 2010, we acquired 440 First Street, NW, a vacant eight-story office building in our Washington, D.C. reporting segment. In October 2013, we substantially completed the redevelopment of the 139,000 square foot property. At June 30, 2015, the property was 65.7% leased and 50.1% occupied. During the fourth quarter of 2014, all vacant space at the property was placed in service. At June 30, 2015, our total investment in the redevelopment project was $55.5 million, which included the original cost basis of the property of $23.6 million.

During the second quarter of 2015, we did not place in-service any completed development or redevelopment space. At June 30, 2015, we had no completed development or redevelopment space that have yet to be placed in service.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Estimated Useful Life of Assets

The estimated useful lives of our assets, by class, are as follows:

Buildings	39 years
Building improvements	5 to 20 years
Furniture, fixtures and equipment	5 to 15 years
Lease related intangible assets	The term of the related lease
Tenant improvements	Shorter of the useful life of the asset or the term of the related lease

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Noncontrolling Interests

6 Months Ended

Jun. 30, 2015

Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests

(a) Noncontrolling Interests in the Operating Partnership

Noncontrolling interests relate to the common interests in the Operating Partnership not owned by us. Interests in the Operating Partnership are owned by limited partners who contributed buildings and other assets to the Operating Partnership in exchange for common Operating Partnership units. Limited partners have the right to tender their units for redemption in exchange for, at our option, our common shares on a one-for-one basis or cash based on the fair value of our common shares at the date of redemption. Unitholders receive a distribution per unit equivalent to the dividend per common share. Differences between amounts paid to redeem noncontrolling interests and their carrying values are charged or credited to equity. As a result of the redemption feature of the Operating Partnership units, the noncontrolling interests are recorded outside of permanent equity.

Noncontrolling interests are presented at the greater of their fair value or their cost basis, which is comprised of their fair value at issuance, subsequently adjusted for the noncontrolling interests’ share of net income or losses available to common shareholders, other comprehensive income or losses, distributions received or additional contributions. We account for issuances of common Operating Partnership units individually, which could result in some portion of our noncontrolling interests being carried at fair value with the remainder being carried at historical cost. Based on the closing price of our common shares at June 30, 2015, the cost to acquire, through cash purchase or issuance of our common shares, all of the outstanding common Operating Partnership units not owned by us would be approximately $27.0 million. At June 30, 2015 and December 31, 2014, we recorded adjustments of $3.0 million and $4.7 million, respectively, to present certain common Operating Partnership units at the greater of their carrying value or redemption value.

At June 30, 2015, 2,619,069 of the total common Operating Partnership units, or 4.3%, were not owned by us. During the three months ended June 30, 2015, 11,508 common Operating Partnership units were redeemed with available cash. There were no common Operating Partnership units redeemed for common shares during the six months ended June 30, 2015. During the first quarter of 2014, we issued 3,125 common Operating Partnership units to the seller of 840 First Street, NE to satisfy a contingent consideration obligation related to the acquisition of the property.

(b) Noncontrolling Interests in a Consolidated Partnership

When we are deemed to have a controlling interest in a partially-owned entity, we will consolidate all of the entity’s assets, liabilities and operating results within our condensed consolidated financial statements. The net assets contributed to the consolidated entity by the third party, if any, will be reflected within permanent equity in our consolidated balance sheets to the extent they are not mandatorily redeemable. The amount will be recorded based on the third party’s initial investment in the consolidated entity and will be adjusted to reflect the third party’s share of earnings or losses in the consolidated entity and any distributions received or additional contributions made by the third party. The earnings or losses from the entity attributable to the third party are recorded as a component of “Net loss (income) attributable to noncontrolling interests” in our consolidated statements of operations.

On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment. At the time, the site was leased to Greyhound, which subsequently relocated its operations. Greyhound’s lease expired on August 31, 2013, at which time the property was placed into development. The joint venture anticipates developing a mixed-use project on the 1.6 acre site, which can accommodate up to 712,000 square feet. At June 30, 2015, our total investment in the development project was $56.7 million, which included the original cost basis of the property of $43.3 million. The majority of the costs in excess of the original cost basis relate to capitalized architectural fees and site preparation costs. We are currently exploring our options related to this property; however, until a definitive plan for the property has been reached and we begin significant development activities, we cannot determine the total cost of the project or the anticipated completion date.

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Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt

Debt

Our borrowings consisted of the following (dollars in thousands):

	June 30,   2015(1)		December 31, 2014(2)
Mortgage and construction loans, effective interest rates ranging from 4.40% to 6.01%, maturing at various dates through June 2023(3)	$	302,582	$	308,637
Unsecured term loan, effective interest rates ranging from LIBOR plus 1.65% to LIBOR plus 2.05%, with staggered maturity dates ranging from October 2018 to October 2020(3)	300,000		300,000
Unsecured revolving credit facility, effective interest rate of LIBOR plus 1.70%, maturing October 2017(3)	152,000		205,000
	$	754,582	$	813,637

⁽¹⁾  Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We sold Rumsey Center on July 28, 2015.

⁽²⁾  The balance at December 31, 2014, includes five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

⁽³⁾  At June 30, 2015, LIBOR was 0.19%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR.

(a) Mortgage and Construction Loans

The following table provides a summary of our mortgage and construction loans at June 30, 2015 and December 31, 2014 (dollars in thousands):

Encumbered Property	Contractual Interest Rate	Effective Interest Rate		Maturity Date	June 30,   2015			December 31, 2014
Jackson National Life Loan(1)	5.19%	5.19%		August 2015	$	56,251		$	64,943
440 First Street, NW(2)	LIBOR + 2.50%	LIBOR + 2.50%		May 2016	32,216			32,216
Storey Park(2)	LIBOR + 2.50%	LIBOR + 2.50%		October 2016	22,000			22,000
Gateway Centre Manassas Building I	7.35%	5.88%		November 2016	324			432
Hillside I and II	5.75%	4.62%		December 2016	12,745			12,949
Redland Corporate Center Buildings II & III	4.20%	4.64%		November 2017	65,186			65,816
840 First Street, NE	5.72%	6.01%		July 2020	36,217			36,539
Battlefield Corporate Center	4.26%	4.40%		November 2020	3,610			3,692
1211 Connecticut Avenue, NW	4.22%	4.47%		July 2022	29,404			29,691
1401 K Street, NW	4.80%	4.93%		June 2023	36,546			36,861
		4.75%	(3)		294,499			305,139
Unamortized fair value adjustments					(270		)	(370		)
Principal balance					294,229			304,769
Debt Classified within “Liabilities-Held-for-Sale”
Rumsey Center(1)	5.19%	5.19%		August 2015	8,083			—
Richmond Portfolio(4)
Hanover Business Center Building D	8.88%	6.63%		August 2015	—			104
Chesterfield Business Center Buildings C,D,G and H	8.50%	6.63%		September 2015	—			302
Hanover Business Center Building C	7.88%	6.63%		December 2017	—			505
Chesterfield Business Center Buildings A,B,E and F	7.45%	6.63%		June 2021	—			1,674
Airpark Business Center	7.45%	6.63%		June 2021	—			913
					8,083			3,498
Total unamortized fair value adjustments - Richmond					—			(73		)
Principal balance					8,083			3,425
Total principal balance					$	302,312		$	308,194

⁽¹⁾  At June 30, 2015, the loan was secured by the following properties: Plaza 500, Van Buren Office Park, Rumsey Center, Snowden Center, Greenbrier Technology Center II and Norfolk Business Center. At June 30, 2015, $8.1 million of the $64.3 million outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. On July 21, 2015, we prepaid, without penalty, the outstanding balance on our Jackson National Life Loan, including the portion that was allocable to Rumsey Center, with a draw under our unsecured revolving credit facility. We subsequently sold Rumsey Center on July 28, 2015.

⁽²⁾  At June 30, 2015, LIBOR was 0.19%.

⁽³⁾  Weighted average interest rate on total mortgage and construction debt.

⁽⁴⁾  The mortgage loans and unamortized fair value adjustments that encumbered properties within the Richmond Portfolio were classified within “Liabilities held-for-sale” on our consolidated balance sheet at December 31, 2014. The loans were prepaid upon the sale of the Richmond Portfolio on March 19, 2015.

On July 21, 2015, we prepaid, without penalty, the $64.2 million outstanding balance on our Jackson National Life Loan, which was scheduled to mature in August 2015 and was secured by the following properties: Plaza 500, Van Buren Office Park, Greenbrier Technology Center II, Norfolk Business Center, Snowden Center and Rumsey Center, which was subsequently sold on July 28, 2015. The loan was prepaid with a draw under our unsecured revolving credit facility.

Land Loan

On October 16, 2014, our 97% owned consolidated joint venture that owns Storey Park repaid a $22.0 million loan that encumbered the Storey Park land and was subject to a 5.0% interest rate floor. Simultaneously with the repayment, the joint venture entered into a new $22.0 million land loan with a variable interest rate of LIBOR plus 2.50%. The new loan matures on October 16, 2016, with a one-year extension at our option, and is repayable in full without penalty at any time during the term of the loan. Per the terms of the loan agreement, $6.0 million of the outstanding principal balance and all of the outstanding accrued interest is recourse to us. As of June 30, 2015, we were in compliance with all the financial covenants of the Storey Park land loan.

Construction Loan

On June 5, 2013, we entered into a construction loan (the “Construction Loan”) that is collateralized by our 440 First Street, NW property, which underwent a major redevelopment that was substantially completed in October 2013. The Construction Loan has a borrowing capacity of up to $43.5 million, of which we initially borrowed $21.7 million in 2013 and borrowed an additional $10.5 million in 2014. The Construction Loan has a variable interest rate of LIBOR plus a spread of 2.5% and matures in May 2016, with two one-year extension options at our discretion. We can repay all or a portion of the Construction Loan, without penalty, at any time during the term of the loan. At June 30, 2015, per the terms of the loan agreement, 50% of the outstanding principal balance and all of the outstanding accrued interest were recourse to us. The percentage of outstanding principal balance that is recourse to us can be reduced upon the property achieving certain operating thresholds. As of June 30, 2015, we were in compliance with all the financial covenants of the Construction Loan.

(b) Unsecured Term Loan

The table below shows the outstanding balances and the interest rates of the three tranches of the $300.0 million unsecured term loan at June 30, 2015 (dollars in thousands):

	Maturity Date	Amount		Interest Rate(1)
Tranche A	October 2018	$	100,000	LIBOR, plus 165 basis points
Tranche B	October 2019	100,000		LIBOR, plus 180 basis points
Tranche C	October 2020	100,000		LIBOR, plus 205 basis points
		$	300,000

⁽¹⁾  At June 30, 2015, LIBOR was 0.19%. The interest rate spread is subject to change based on our maximum total indebtedness ratio. For more information, see note 8(e) Debt – Financial Covenants.

The term loan agreement contains various restrictive covenants substantially identical to those contained in our unsecured revolving credit facility, including with respect to liens, indebtedness, investments, distributions, mergers and asset sales. In addition, the agreement requires that we satisfy certain financial covenants that are also substantially identical to those contained in our unsecured revolving credit facility. The agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of our Company under the agreement to be immediately due and payable. As of June 30, 2015, we were in compliance with all the financial covenants of the unsecured term loan.

(c) Unsecured Revolving Credit Facility

During the second quarter of 2015, we borrowed $13.0 million under the unsecured revolving credit facility, which was used for general corporate purposes, and repaid $4.0 million of the outstanding balance under the unsecured revolving credit facility with available cash. For the three and six months ended June 30, 2015, our weighted average borrowings under the unsecured revolving credit facility were $149.4 million and $171.3 million, respectively, with a weighted average interest rate of 1.9% for both periods, compared with weighted average borrowings of $112.7 million and $104.9 million for the three and six months ended June 30, 2014, respectively, with a weighted average interest rate of 1.7% for both periods in 2014. Our maximum outstanding borrowings were $156.0 million and $218.0 million for the three and six months ended June 30, 2015, respectively, and $158.0 million for both the three and six months ended June 30, 2014. At June 30, 2015, outstanding borrowings under the unsecured revolving credit facility were $152.0 million with a weighted average interest rate of 1.9%. At June 30, 2015, LIBOR was 0.19% and the applicable spread on our unsecured revolving credit facility was 170 basis points. The available capacity under the unsecured revolving credit facility was $92.0 million as of the date of this filing. We are required to pay an annual commitment fee of 0.25% based on the amount of unused capacity under the unsecured revolving credit facility. As of June 30, 2015, we were in compliance with all the financial covenants of the unsecured revolving credit facility. For more information, see note 8(e) Debt – Financial Covenants.

(d) Interest Rate Swap Agreements

At June 30, 2015, we had eleven interest rate swap agreements outstanding that collectively fixed LIBOR, at a weighted average interest rate of 1.5%, on $300.0 million of our variable rate debt. See note 9, Derivative Instruments, for more information about our interest rate swap agreements.

(e) Financial Covenants

Our outstanding corporate debt agreements contain specific financial covenants that may impact future financing decisions made by us or may be impacted by a decline in operations. These covenants relate to our allowable leverage, minimum tangible net worth, fixed charge coverage and other financial metrics. As of June 30, 2015, we were in compliance with the covenants of our unsecured term loan and unsecured revolving credit facility and any such financial covenants of our mortgage debt (including the Construction Loan and the Storey Park land loan).

Our continued ability to borrow under the unsecured revolving credit facility is subject to compliance with financial and operating covenants, and a failure to comply with any of these covenants could result in a default under the credit facility. These debt agreements also contain cross-default provisions that would be triggered if we were in default under other loans, including mortgage loans, in excess of certain amounts. In the event of a default, the lenders could accelerate the timing of payments under the debt obligations and we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all, which would have a material adverse effect on our liquidity, financial condition, results of operations and ability to make distributions to our shareholders.

Our unsecured revolving credit facility and unsecured term loan are subject to interest rate spreads that float based on the quarterly measurement of our maximum consolidated total indebtedness to gross asset value ratio. Based on our leverage ratio at June 30, 2015, the applicable interest rate spreads on the unsecured revolving credit facility and the unsecured term loan will be unchanged.

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Fair Value Measurements - Fair Value of Debt Instruments (Detail) $ in Thousands		Jun. 30, 2015 USD ($) ft²	Feb. 24, 2015 USD ($)	Dec. 31, 2014 USD ($)	Oct. 16, 2014 ft²	Jun. 30, 2014 ft²	[2]	Apr. 30, 2011 USD ($) ft²
Financial Assets:
Carrying value of notes receivable		$ 34,000		$ 63,679
Fair value of notes receivable		$ 34,000		63,700
Financial Liabilities:
Area of real estate property | ft²	[1]	7,957,016				8,700,651
Carrying Value
Financial Assets:
Carrying value of notes receivable	[3]	$ 34,000		63,679
Financial Liabilities:
Carrying value of the debt instruments		754,582		813,637
Carrying Value | Mortgage debt
Financial Liabilities:
Carrying value of the debt instruments	[4],[5]	302,582		308,637
Carrying Value | Unsecured term loan
Financial Liabilities:
Carrying value of the debt instruments		300,000		300,000
Carrying Value | Unsecured revolving credit facility
Financial Liabilities:
Carrying value of the debt instruments		152,000		205,000
Fair Value
Financial Assets:
Fair value of notes receivable	[3]	34,000		63,720
Financial Liabilities:
Fair value of the debt instruments		745,835		797,882
Fair Value | Mortgage debt
Financial Liabilities:
Fair value of the debt instruments	[4],[5]	293,426		292,882
Fair Value | Unsecured term loan
Financial Liabilities:
Fair value of the debt instruments		300,375		300,000
Fair Value | Unsecured revolving credit facility
Financial Liabilities:
Fair value of the debt instruments		152,034		$ 205,000
America Square [Member]
Financial Liabilities:
Area of real estate property | ft²								461,000
Mezzanine loan provided to owners			$ 29,700					$ 30,000
Rumsey Center [Domain]
Financial Liabilities:
Area of real estate property | ft²					135,000
Mortgages Held-for-sale, Fair Value Disclosure		$ 8,100
Richmond
Financial Liabilities:
Area of real estate property | ft²		827,900
Mortgages Held-for-sale, Fair Value Disclosure		$ 3,500

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

[3] The principal amount of our notes receivable was $34.0 million and $63.7 million at June 30, 2015 and December 31, 2014, respectively. On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan, which had an outstanding $29.7 million balance of the $30.0 million mezzanine loan that we provided them in April 2011.

[4] Includes the entire balance of the Jackson National Life Loan, which was prepaid, without penalty, on July 21, 2015. At June 30, 2015, $8.1 million of the outstanding balance of the Jackson National Life Loan was allocable to Rumsey Center and was classified within “Liabilities held-for-sale” on our consolidated balance sheet. We subsequently sold Rumsey Center on July 28, 2015.

[5] The balances at December 31, 2014, include five mortgage loans that were repaid with the sale of the Richmond Portfolio on March 19, 2015. At December 31, 2014, the mortgage loans had an aggregate principal balance of $3.5 million and were classified within “Liabilities held-for-sale” on our consolidated balance sheet for December 31, 2014.

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Investment in Affiliates

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates

Investment in Affiliates

We own an interest in several joint ventures that own properties. We do not control the activities that are most significant to the joint ventures. As a result, the assets, the liabilities and the operating results of these noncontrolled joint ventures are not consolidated within our unaudited condensed consolidated financial statements. Our investments in these joint ventures are recorded as “Investment in affiliates” in our consolidated balance sheets. Our investment in affiliates consisted of the following (dollars in thousands):

	Reporting Segment	Ownership Interest		June 30, 2015		December 31, 2014
Prosperity Metro Plaza	Northern Virginia	51	%	$	24,657	$	24,651
1750 H Street, NW	Washington, D.C.	50	%	15,367		14,834
Aviation Business Park	Maryland	50	%	5,867		5,748
RiversPark I and II(1)	Maryland	25	%	2,168		2,249
				$	48,059	$	47,482

⁽¹⁾ RiversPark I and RiversPark II are owned through two separate joint ventures.

On November 12, 2014, our 51% owned unconsolidated joint venture repaid a $48.3 million mortgage loan that encumbered Prosperity Metro Plaza, a two-building, 327,000 square-foot office building located in Merrifield, Virginia. Simultaneously with the repayment, the joint venture entered into a new $50.0 million mortgage loan that has a fixed-interest rate of 3.91%. The new loan requires interest only payments through December 2024, at which time the loan requires principal and interest payments through its maturity date. The loan has a maturity date of December 1, 2029 and is repayable in full without penalty on or after June 1, 2029.

On September 26, 2014, our 25% owned unconsolidated joint venture amended a $28.0 million mortgage loan that encumbers Rivers Park I and II, a six-building, 308,000 square-foot business park located in Columbia, Maryland. The amended mortgage loan reduced the variable interest rate spread by 60 basis points and reduced the amount of outstanding principal recourse to us from 25% to 10%. The amended loan matures on September 26, 2017 and is repayable in full without penalty at any time during the term of the loan.

On July 10, 2014, an unconsolidated joint venture, in which we have a 50% ownership interest, repaid a $27.9 million mortgage loan that encumbered 1750 H Street, NW, a ten-story, 113,000 square-foot office building located in Washington, D.C. Simultaneously with the repayment, the joint venture entered into a new $32.0 million mortgage loan that has a fixed interest rate of 3.92%, a maturity date of August 1, 2024, and is repayable in full without penalty on or after August 1, 2021. The new loan requires monthly interest-only payments with a constant interest rate over the life of the loan.

The net assets of our unconsolidated joint ventures consisted of the following (dollars in thousands):

	June 30, 2015		December 31, 2014
Assets:
Rental property, net	$	193,861	$	193,533
Cash and cash equivalents	5,828		4,567
Other assets	15,635		16,748
Total assets	215,324		214,848
Liabilities:
Mortgage loans(1)	110,000		110,000
Other liabilities	6,470		7,256
Total liabilities	116,470		117,256
Net assets	$	98,854	$	97,592

⁽¹⁾  Of the total mortgage debt that encumbers our unconsolidated properties, $2.8 million is recourse to us. We believe the fair value of the potential liability to us under this guaranty is inconsequential as the likelihood of our need to perform under the debt agreement is remote.

Our share of earnings or losses related to our unconsolidated joint ventures is recorded in our consolidated statements of operations as “Equity in (earnings) losses of affiliates.”

The following table summarizes the results of operations of our unconsolidated joint ventures, which, due to our varying ownership interests in the joint ventures and the varying operations of the joint ventures, may not be reflective of the amounts recorded in our consolidated statements of operations (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Total revenues	$	6,063		$	5,780		$	12,230		$	11,531
Total operating expenses	(1,756		)	(1,694		)	(3,912		)	(3,920		)
Net operating income	4,307			4,086			8,318			7,611
Depreciation and amortization	(2,287		)	(2,264		)	(4,536		)	(5,067		)
Other expense, net	(975		)	(1,077		)	(1,948		)	(2,087		)
Net income	$	1,045		$	745		$	1,834		$	457

We earn various fees from several of our joint ventures, which include management fees, leasing commissions and construction management fees. We recognize fees only to the extent of the third party ownership interest in our unconsolidated joint ventures. We recognized fees from our unconsolidated joint ventures of $0.2 million and $0.3 million for both the three and six months ended June 30, 2015 and 2014, respectively, which are reflected within “Tenant reimbursements and other revenues” in our consolidated statements of operations.

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Dispositions

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

Dispositions

During the second quarter of 2014, we prospectively adopted ASU 2014-08, which states that a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. All other disposed properties will have their operating results reflected within continuing operations on our consolidated statements of operations for all periods presented.

(a) Disposed or Held-for-Sale Properties within Continuing Operations

The following table is a summary of property dispositions or held-for-sale properties whose operating results are included in continuing operations in our consolidated statements of operations for the periods presented (dollars in thousands):

	Reporting Segment	Disposition Date	Property Type	Square Feet	Net Sale Proceeds
Rumsey Center(1)	Maryland	7/28/2015	Business Park	135,015	$	14,956
Owings Mills Business Park	Maryland	10/16/2014	Business Park	180,475	12,417
Corporate Campus at Ashburn Center	Northern Virginia	6/26/2014	Business Park	194,184	39,910

⁽¹⁾ Rumsey Center was classified as held-for-sale at June 30, 2015.

On July 28, 2015, we sold Rumsey Center, a four-building, single-story business park, which is located in our Maryland reporting segment, totaling 135,000 square feet, for net proceeds of $15.0 million. We intend to use the net proceeds from the sale of Rumsey Center to fund potential repurchases of our common shares, to repay a portion of the outstanding balance of our unsecured revolving credit facility and/or for general corporate purposes. At June 30, 2015, Rumsey Center met our held-for-sale criteria and, therefore, the assets of the buildings were classified within “Assets held-for-sale” and the liabilities of the buildings were classified within “Liabilities-held-for-sale” in our consolidated balance sheet. Rumsey Center, together with five other properties, served as collateral for our Jackson National Life Loan. On July 21, 2015, we prepaid, without penalty, the outstanding balance of the Jackson National Life Loan, $8.1 million of which was allocable to Rumsey Center and was included within “Liabilities held-for-sale” on our consolidated balance sheet at June 30, 2015. The assets classified within “Assets held-for-sale” at June 30, 2015 primarily consisted of $2.7 million in land, $10.8 million in buildings, $3.2 million in tenant improvements and $5.8 million in accumulated depreciation.  The remaining $0.8 million classified within “Assets held-for-sale” consisted of accrued straight-line rents, net of allowance for doubtful accounts, deferred costs, net of accumulated amortization and prepaid expenses and other assets. The "Liabilities held-for-sale" at June 30, 2015 primarily consisted of $8.1 million of mortgage debt. The remaining $0.2 million classified within "Liabilities held-for-sale" consisted of prepaid rent and security deposits.

The operating results of Rumsey Center are reflected in continuing operations in our consolidated statements of operations for the three and six months ended June 30, 2015 and 2014. The operating results of Corporate Campus at Ashburn Center and Owings Mills Business Park are reflected in continuing operations in our consolidated statements of operations for the three and six months ended June 30, 2014. The following table summarizes the aggregate results of operations for the three properties that are included in continuing operations for the periods presented (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues	$	481		$	1,745		$	990		$	3,659
Property operating expenses	(129		)	(467		)	(339		)	(1,188		)
Depreciation and amortization	(146		)	(593		)	(336		)	(1,205		)
Interest expense	(110		)	(111		)	(220		)	(223		)
Impairment of rental property	—			(3,956		)	—			(3,956		)
Income (loss) from operations of disposed property	96			(3,382		)	95			(2,913		)
Gain on sale of rental property	—			21,230			—			21,230
Net income from continuing operations of disposed property	$	96		$	17,848		$	95		$	18,317

(b) Discontinued Operations

The following table is a summary of property dispositions whose operating results are reflected as discontinued operations in our consolidated statements of operations for the periods presented (dollars in thousands):

	Reporting Segment	Disposition Date	Property Type	Square Feet	Net Sale Proceeds
Richmond Portfolio	Southern Virginia	3/19/2015	Business Park	827,900	$	53,768
Patrick Center	Maryland	4/16/2014	Office	66,269	10,888
West Park	Maryland	4/2/2014	Office	28,333	2,871
Girard Business Center and Gateway Center	Maryland	1/29/2014	Business Park and Office	341,973	31,616

The Richmond Portfolio was sold subsequent to our adoption of ASU 2014-08 and resulted in a strategic shift away from the Richmond, Virginia area. As a result, we reflected the operating results of the Richmond Portfolio as discontinued operations in our consolidated statements of operations for the periods presented. All properties sold prior to our adoption of ASU 2014-08 or classified as held-for-sale in previously issued consolidated financial statements prior to our adoption of ASU 2014-08, are classified within discontinued operations.

The following table summarizes the results of operations of properties included in discontinued operations (dollars in thousands):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015			2014
Revenues	$	—	$	1,948	$	877		$	3,756
Income (loss) from operations, before taxes(1)	—		254		(975		)	(657		)
Loss on debt extinguishment	—		—		(489		)	—
Gain on sale of rental property	—		1,284		857			1,338

⁽¹⁾  During the first quarter of 2015, we accelerated $2.0 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of the Richmond Portfolio in March 2015. During the first quarter of 2014, we accelerated $1.5 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of both Girard Business Center and Gateway Center in January 2014.

We have had, and will have, no continuing involvement with any of our disposed properties subsequent to their disposal. The operations of the disposed properties were not subject to any income based taxes. With the exception of Rumsey Center, we did not dispose of or enter into any other binding agreements to sell any other properties during the six months ended June 30, 2015 and 2014.

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Derivative Instruments

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

We are exposed to certain risks arising from business operations and economic factors. We use derivative financial instruments to manage exposures that arise from business activities in which our future exposure to interest rate fluctuations is unknown. The objective in the use of an interest rate derivative is to add stability to interest expenses and manage exposure to interest rate changes. We do not use derivatives for trading or speculative purposes and we intend to enter into derivative agreements only with counterparties that we believe have a strong credit rating to mitigate the risk of counterparty default or insolvency. No hedging activity can completely insulate us from the risks associated with changes in interest rates. Moreover, interest rate hedging could fail to protect us or adversely affect us because, among other things:

• available interest rate hedging may not correspond directly with the interest rate risk for which we seek protection;

• the duration of the hedge may not match the duration of the related liability;

• the party owing money in the hedging transaction may default on its obligation to pay; and

• the credit quality of the party owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign its side of the hedging transaction.

We enter into interest rate swap agreements to hedge our exposure on our variable rate debt against fluctuations in prevailing interest rates. The interest rate swap agreements fix LIBOR to a specified interest rate; however, the swap agreements do not affect the contractual spreads associated with each variable debt instrument’s applicable interest rate.

At June 30, 2015, we had eleven interest rate swap agreements outstanding that collectively fixed LIBOR at a weighted average interest rate of 1.5% on $300.0 million of our variable rate debt. Our interest rate swap agreements are summarized below (dollars in thousands):

Maturity Date	Notional Amount		Interest Rate Contractual Component	Fixed LIBOR Interest Rate
July 2016	$	35,000	LIBOR	1.754	%
July 2016	25,000		LIBOR	1.763	%
July 2017	30,000		LIBOR	2.093	%
July 2017	30,000		LIBOR	2.093	%
July 2017	25,000		LIBOR	1.129	%
July 2017	12,500		LIBOR	1.129	%
July 2017	50,000		LIBOR	0.955	%
July 2018	12,500		LIBOR	1.383	%
July 2018	30,000		LIBOR	1.660	%
July 2018	25,000		LIBOR	1.394	%
July 2018	25,000		LIBOR	1.135	%
Total/Weighted Average	$	300,000		1.505	%

Our interest rate swap agreements are designated as cash flow hedges and we record the effective portion of any unrealized gains associated with the change in fair value of the swap agreements within “Accumulated other comprehensive loss” and “Prepaid expenses and other assets” and the effective portion of any unrealized losses within “Accumulated other comprehensive loss” and “Accounts payable and other liabilities” on our consolidated balance sheets. We record our proportionate share of any unrealized gains or losses on our cash flow hedges associated with our unconsolidated joint ventures within “Accumulated other comprehensive loss” and “Investment in affiliates” on our consolidated balance sheets. We record any gains or losses incurred as a result of each interest rate swap agreement’s fixed rate deviating from our respective loan’s contractual rate within “Interest expense” in our consolidated statements of operations. We did not have any material ineffectiveness associated with our cash flow hedges during the six months ended June 30, 2015 and 2014.

Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to “Interest expense” on our consolidated statements of operations as interest payments are made on our variable-rate debt. We reclassified accumulated other comprehensive loss as an increase to interest expense of $1.0 million for both the three months ended June 30, 2015 and 2014, and $2.0 million and $2.1 million for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, we estimated that $3.6 million of our accumulated other comprehensive loss will be reclassified as an increase to interest expense over the following twelve months.

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Noncontrolling Interests - Additional Information (Detail) $ in Millions		3 Months Ended		6 Months Ended
	Aug. 04, 2011 a ft²	Jun. 30, 2015 USD ($) ft² shares	Mar. 31, 2014 shares	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 shares	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Cost to acquire all of the outstanding common Operating Partnership units not owned by the Company | $		$ 27.0		$ 27.0
Fair value adjustment, cost basis | $		$ 3.0		$ 3.0		$ 4.7
Outstanding Operating Partnership units not owned by the Company				2,619,069
Operating Partnership units not owned by Company		4.30%
Common operating partnership units redeemed for cash		11,508		11,508
Common operating partnership units redeemed for common shares		0		0
Operating Partnership units issued for acquisition				0
Area of land available for development in additional building space | ft²		1,300,000
Washington D C Reporting Segment
Business Acquisition [Line Items]
Development of area for operations by joint venture | a	1.6
Area of land available for development in additional building space | ft²		700,000
Projected incremental investment in development project | $		$ 56.7		$ 56.7
Original cost basis of the property | $		$ 43.3		$ 43.3
840 First Street, NE [Member]
Business Acquisition [Line Items]
Operating Partnership units issued for acquisition			3,125		3,125
Greyhound Property [Member] | Washington D C Reporting Segment
Business Acquisition [Line Items]
Percentage of interest in joint venture	97.00%
Greyhound Property [Member] | Washington D C Reporting Segment | Maximum
Business Acquisition [Line Items]
Area of land available for development in additional building space | ft²	712,000

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Share-Based Payments - Summary of Company's Non-vested Share Awards (Detail) - 3 months ended Jun. 30, 2015 - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested Shares, Beginning Balance	461,615
Non-vested Shares, Granted	31,218
Non-vested Shares, Vested	(34,835)
Non-vested Shares, Ending Balance	457,998
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Beginning Balance	$ 12.83
Weighted Average Grant Date Fair Value, Granted	10.57
Weighted Average Grant Date Fair Value, Vested	12.96
Weighted Average Grant Date Fair Value, Ending Balance	$ 12.67

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Equity - Company's Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Beginning balance	$ (3,268)	$ (3,836)
Net unrealized loss on derivative instruments	(328)	(801)
Net loss attributable to noncontrolling interests	14	34
Ending balance	$ (3,582)	$ (4,603)

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Summary of Segment Information

The results of operations of our four reporting segments for the three and six months ended June 30, 2015 and 2014 are as follows (dollars in thousands):

	Three Months Ended June 30, 2015
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Number of buildings(1)	6			38			49			19			112
Square feet(1)	914,912			1,997,789			3,020,388			2,023,927			7,957,016
Total revenues	$	11,154		$	11,034		$	13,700		$	7,151		$	43,039
Property operating expense	(2,987		)	(2,645		)	(3,191		)	(1,838		)	(10,661		)
Real estate taxes and insurance	(1,956		)	(896		)	(1,345		)	(614		)	(4,811		)
Total property operating income	$	6,211		$	7,493		$	9,164		$	4,699		27,567
Depreciation and amortization expense													(16,817		)
General and administrative													(4,979		)
Other expenses													(5,295		)
Net income													$	476
Capital expenditures(2)	$	3,983		$	2,153		$	5,037		$	910		$	12,083
	Three Months Ended June 30, 2014
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Number of buildings(1)(3)	5			42			49			38			134
Square feet(1)(3)	649,107			2,178,379			3,021,597			2,851,568			8,700,651
Total revenues	$	7,827		$	11,227		$	13,146		$	7,107		$	39,307
Property operating expense	(2,407		)	(2,427		)	(3,107		)	(2,283		)	(10,224		)
Real estate taxes and insurance	(1,247		)	(975		)	(1,465		)	(554		)	(4,241		)
Total property operating income	$	4,173		$	7,825		$	8,574		$	4,270		24,842
Depreciation and amortization expense													(14,829		)
General and administrative													(5,218		)
Acquisition costs													(1,111		)
Impairment of rental property													(3,956		)
Other income													17,068
Income from discontinued operations													1,538
Net income													$	18,334
Capital expenditures(2)	$	4,901		$	2,701		$	1,537		$	2,749		$	12,249

	Six Months Ended June 30, 2015
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Total revenues	$	22,186		$	22,739		$	27,815		$	14,148		$	86,888
Property operating expense	(6,126		)	(6,663		)	(7,257		)	(3,729		)	(23,775		)
Real estate taxes and insurance	(3,979		)	(1,788		)	(2,894		)	(1,193		)	(9,854		)
Total property operating income	$	12,081		$	14,288		$	17,664		$	9,226		53,259
Depreciation and amortization expense													(33,151		)
General and administrative													(10,505		)
Other expenses													(8,028		)
Loss from discontinued operations													(607		)
Net income													$	968
Total assets(4)(5)	$	505,270		$	357,422		$	450,367		$	167,860		$	1,537,482
Capital expenditures(2)	$	7,419		$	4,317		$	15,880		$	3,400		$	31,325
	Six Months Ended June 30, 2014
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Total revenues	$	14,767		$	22,872		$	26,813		$	14,219		$	78,671
Property operating expense	(4,393		)	(6,373		)	(7,083		)	(4,412		)	(22,261		)
Real estate taxes and insurance	(2,301		)	(1,978		)	(2,989		)	(1,105		)	(8,373		)
Total property operating income	$	8,073		$	14,521		$	16,741		$	8,702		48,037
Depreciation and amortization expense													(29,139		)
General and administrative													(10,414		)
Acquisition costs													(1,179		)
Impairment of rental property													(3,956		)
Other income													12,862
Income from discontinued operations													681
Net income													$	16,892
Total assets(4)(5)	$	410,000		$	374,416		$	438,254		$	229,263		$	1,538,266
Capital expenditures(2)	$	11,382		$	5,091		$	2,359		$	4,172		$	23,642

⁽¹⁾  Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

⁽²⁾  Capital expenditures for corporate assets not allocated to any of our reportable segments totaled none and $361 for the three months ended June 30, 2015 and 2014, respectively, and $309 and $638 for the six months ended June 30, 2015 and 2014, respectively.

⁽³⁾  Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

⁽⁴⁾  Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates.

⁽⁵⁾  Corporate assets not allocated to any of our reportable segments totaled $56,563 and $86,333 at June 30, 2015 and 2014, respectively.

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Dispositions - Net (Loss) Income from Discontinued Operations (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on debt extinguishment		$ 0	$ 0	$ (489)	$ 0
Discontinued Operations [Member] | All properties classified within discontinued operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		0	1,948	877	3,756
Income (loss) from operations, before taxes(1)	[1]	0	254	(975)	(657)
Loss on debt extinguishment		0	0	(489)	0
Gain on sale of rental property		$ 0	$ 1,284	$ 857	$ 1,338

[1] During the first quarter of 2015, we accelerated $2.0 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of the Richmond Portfolio in March 2015. During the first quarter of 2014, we accelerated $1.5 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of both Girard Business Center and Gateway Center in January 2014.

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Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments consist of four distinct reporting and operational segments within the greater Washington, D.C. region in which we operate: Washington, D.C., Maryland, Northern Virginia and Southern Virginia. We evaluate the performance of our segments based on the operating results of the properties located within each segment, which excludes large non-recurring gains and losses, gains or losses from sale of rental property, interest expense, general and administrative costs, acquisition costs or any other indirect corporate expense to the segments. In addition, the segments do not have significant non-cash items other than straight-line and deferred market rent amortization reported in their operating results. There are no inter-segment sales or transfers recorded between segments.

The results of operations of our four reporting segments for the three and six months ended June 30, 2015 and 2014 are as follows (dollars in thousands):

	Three Months Ended June 30, 2015
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Number of buildings(1)	6			38			49			19			112
Square feet(1)	914,912			1,997,789			3,020,388			2,023,927			7,957,016
Total revenues	$	11,154		$	11,034		$	13,700		$	7,151		$	43,039
Property operating expense	(2,987		)	(2,645		)	(3,191		)	(1,838		)	(10,661		)
Real estate taxes and insurance	(1,956		)	(896		)	(1,345		)	(614		)	(4,811		)
Total property operating income	$	6,211		$	7,493		$	9,164		$	4,699		27,567
Depreciation and amortization expense													(16,817		)
General and administrative													(4,979		)
Other expenses													(5,295		)
Net income													$	476
Capital expenditures(2)	$	3,983		$	2,153		$	5,037		$	910		$	12,083
	Three Months Ended June 30, 2014
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Number of buildings(1)(3)	5			42			49			38			134
Square feet(1)(3)	649,107			2,178,379			3,021,597			2,851,568			8,700,651
Total revenues	$	7,827		$	11,227		$	13,146		$	7,107		$	39,307
Property operating expense	(2,407		)	(2,427		)	(3,107		)	(2,283		)	(10,224		)
Real estate taxes and insurance	(1,247		)	(975		)	(1,465		)	(554		)	(4,241		)
Total property operating income	$	4,173		$	7,825		$	8,574		$	4,270		24,842
Depreciation and amortization expense													(14,829		)
General and administrative													(5,218		)
Acquisition costs													(1,111		)
Impairment of rental property													(3,956		)
Other income													17,068
Income from discontinued operations													1,538
Net income													$	18,334
Capital expenditures(2)	$	4,901		$	2,701		$	1,537		$	2,749		$	12,249

	Six Months Ended June 30, 2015
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Total revenues	$	22,186		$	22,739		$	27,815		$	14,148		$	86,888
Property operating expense	(6,126		)	(6,663		)	(7,257		)	(3,729		)	(23,775		)
Real estate taxes and insurance	(3,979		)	(1,788		)	(2,894		)	(1,193		)	(9,854		)
Total property operating income	$	12,081		$	14,288		$	17,664		$	9,226		53,259
Depreciation and amortization expense													(33,151		)
General and administrative													(10,505		)
Other expenses													(8,028		)
Loss from discontinued operations													(607		)
Net income													$	968
Total assets(4)(5)	$	505,270		$	357,422		$	450,367		$	167,860		$	1,537,482
Capital expenditures(2)	$	7,419		$	4,317		$	15,880		$	3,400		$	31,325
	Six Months Ended June 30, 2014
	Washington, D.C.			Maryland			Northern Virginia			Southern Virginia			Consolidated
Total revenues	$	14,767		$	22,872		$	26,813		$	14,219		$	78,671
Property operating expense	(4,393		)	(6,373		)	(7,083		)	(4,412		)	(22,261		)
Real estate taxes and insurance	(2,301		)	(1,978		)	(2,989		)	(1,105		)	(8,373		)
Total property operating income	$	8,073		$	14,521		$	16,741		$	8,702		48,037
Depreciation and amortization expense													(29,139		)
General and administrative													(10,414		)
Acquisition costs													(1,179		)
Impairment of rental property													(3,956		)
Other income													12,862
Income from discontinued operations													681
Net income													$	16,892
Total assets(4)(5)	$	410,000		$	374,416		$	438,254		$	229,263		$	1,538,266
Capital expenditures(2)	$	11,382		$	5,091		$	2,359		$	4,172		$	23,642

⁽¹⁾  Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

⁽²⁾  Capital expenditures for corporate assets not allocated to any of our reportable segments totaled none and $361 for the three months ended June 30, 2015 and 2014, respectively, and $309 and $638 for the six months ended June 30, 2015 and 2014, respectively.

⁽³⁾  Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

⁽⁴⁾  Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates.

⁽⁵⁾  Corporate assets not allocated to any of our reportable segments totaled $56,563 and $86,333 at June 30, 2015 and 2014, respectively.

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Notes Receivable (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Summary of Notes Receivable

Below is a summary of our notes receivable for our outstanding mezzanine loans (dollars in thousands):

	Balance at June 30, 2015
Property	Face Amount		Unamortized Origination Fees		Balance		Interest Rate
950 F Street, NW	$	34,000	$	—	$	34,000	9.75	%

	Balance at December 31, 2014
Property	Face Amount		Unamortized Origination Fees			Balance		Interest Rate
950 F Street, NW	$	34,000	$	—		$	34,000	9.75	%
America’s Square	29,720		(41		)	29,679		9.0	%
	$	63,720	$	(41	)	$	63,679

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Dispositions Dispositions - Disposed or Held-for-Sale Properties within Continuing Operations (Details) $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2015 USD ($) ft² Integer	Jun. 30, 2014 USD ($) ft²		Jun. 30, 2015 USD ($) ft² Integer	Jun. 30, 2014 USD ($) ft²		Oct. 16, 2014 ft²
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Square feet | ft²	[1]	7,957,016	8,700,651	[2]	7,957,016	8,700,651	[2]
Impairment Of Properties		$ 0	$ (3,956)		$ 0	$ (3,956)
Gain (Loss) on Sale of Properties		0	21,230		0	21,230
Rumsey Center [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Square feet | ft²								135,000
Mortgages Held-for-sale, Fair Value Disclosure		8,100			8,100
Land and Land Improvements		2,700			2,700
Buildings and Improvements, Gross		10,800			10,800
Tenant Improvements		3,200			3,200
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment		5,800			5,800
Other assets		800			800
Accrued Rent		200			200
Rumsey Center [Domain] | Continuing Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		481			990
Property operating expenses		(129)			(339)
Depreciation and amortization		(146)			(336)
Interest Expense		(110)			(220)
Impairment Of Properties		0			0
Operating Income (Loss) from Continuing Operations Attributable to Parent		96			95
Gain (Loss) on Sale of Properties		0			0
Net income from continuing operations of disposed property		$ 96			$ 95
Corporate Campus at Ashburn Center and Owings Mills Business Park | Continuing Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues			1,745			3,659
Property operating expenses			(467)			(1,188)
Depreciation and amortization			(593)			(1,205)
Interest Expense			(111)			(223)
Impairment Of Properties			(3,956)			(3,956)
Operating Income (Loss) from Continuing Operations Attributable to Parent			(3,382)			(2,913)
Gain (Loss) on Sale of Properties			21,230			21,230
Net income from continuing operations of disposed property			$ 17,848			$ 18,317
MARYLAND | Rumsey Center [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reporting Segment	[3]	Maryland
Disposition Date Of Property	[3]	Jul. 28, 2015
Property Type	[3]	Business Park
Square feet | ft²	[3]							135,015
Proceeds from sale of properties	[3]	$ 14,956
MARYLAND | Owings Mills Business Park
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reporting Segment		Maryland
Disposition Date Of Property		Oct. 16, 2014
Property Type		Business Park
Square feet | ft²								180,475
Proceeds from sale of properties		$ 12,417
Northern Virginia | Corporate Campus at Ashburn Center
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reporting Segment		Northern Virginia
Disposition Date Of Property		Jun. 26, 2014
Property Type		Business Park
Square feet | ft²		194,184			194,184
Proceeds from sale of properties		$ 39,910
Jackson Loan [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of Properties Collateralizing a Loan | Integer		5			5

[1] Excludes Storey Park from our Washington, D.C. reporting segment, which was placed in development in the third quarter of 2013.

[2] Includes occupied space at 440 First Street, NW in our Washington, D.C. reporting segment, which was substantially completed in the third quarter of 2013. In October 2014, the property was placed in service.

[3] Rumsey Center was classified as held-for-sale at June 30, 2015.

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Rental Property - Additional Information (Detail) $ in Millions		3 Months Ended
	Aug. 04, 2011 a ft² Rate	Jun. 30, 2015 USD ($) ft²
Segment Reporting Information [Line Items]
Area of land available for development in additional building space		1,300,000
Occupancy rate in the Company's consolidated properties		89.10%
Placed in-service redevelopment efforts		0
Redevelopment Efforts Yet To Be Placed In Service		0
Greyhound Property [Member]
Segment Reporting Information [Line Items]
Percentage Of Interest In Joint Venture Owned By Entity | Rate	97.00%
440 First Street, NW [Member]
Segment Reporting Information [Line Items]
Original cost basis of the property | $		$ 23.6
Projected incremental investment in redevelopment project | $		$ 55.5
Anticipated completion of redevelopment		139,000
Occupancy rate in the Company's consolidated properties		65.70%
Leased in Company Consolidated Properties		50.10%
Washington D C Reporting Segment
Segment Reporting Information [Line Items]
Area of land available for development in additional building space		700,000
Lease expiration date	Aug. 31, 2013
Development of area for operations by joint venture | a	1.6
Projected incremental investment in development project | $		$ 56.7
Original cost basis of the property | $		$ 43.3
Washington D C Reporting Segment | Greyhound Property [Member]
Segment Reporting Information [Line Items]
Percentage Of Interest In Joint Venture Owned By Entity	97.00%
Washington D C Reporting Segment | Maximum | Greyhound Property [Member]
Segment Reporting Information [Line Items]
Area of land available for development in additional building space	712,000
Maryland Reporting Segment [Member]
Segment Reporting Information [Line Items]
Area of land available for development in additional building space		100,000
Northern Virginia
Segment Reporting Information [Line Items]
Area of land available for development in additional building space		400,000
Area of land placed under development		167,000
Projected incremental investment in development project | $		$ 16.4
Original cost basis of the property | $		$ 5.2
Southern Virginia [Member]
Segment Reporting Information [Line Items]
Area of land available for development in additional building space		100,000

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Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 476	$ 18,334	$ 968	$ 16,892
Unrealized gain on derivative instruments	748	99	397	416
Unrealized loss on derivative instruments	0	(1,079)	(725)	(1,217)
Total comprehensive income	1,224	17,354	640	16,091
Net loss (income) attributable to noncontrolling interests	114	(652)	227	(458)
Net gain (loss) from derivative instruments attributable to noncontrolling interests	32	42	(14)	34
Comprehensive income attributable to First Potomac Realty Trust	$ 1,370	$ 16,744	$ 853	$ 15,667

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic earnings or loss per common share (“EPS”) is calculated by dividing net income or loss attributable to common shareholders by the weighted average common shares outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented, which include stock options, non-vested shares and preferred shares. We apply the two-class method for determining EPS as our outstanding unvested shares with non-forfeitable dividend rights are considered participating securities. Our excess of distributions over earnings related to participating securities is shown as a reduction in total earnings attributable to common shareholders in our computation of EPS.

The following table sets forth the computation of our basic and diluted earnings per common share (amounts in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Numerator for basic and diluted earnings per common share:
Income from continuing operations	$	476		$	16,796		$	1,575		$	16,211
Income (loss) from discontinued operations	—			1,538			(607		)	681
Net income	476			18,334			968			16,892
Less: Net loss (income) from continuing operations attributable to noncontrolling interests	114			(582		)	201			(429		)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests	—			(70		)	26			(29		)
Net income attributable to First Potomac Realty Trust	590			17,682			1,195			16,434
Less: Dividends on preferred shares	(3,100		)	(3,100		)	(6,200		)	(6,200		)
Net (loss) income attributable to common shareholders	(2,510		)	14,582			(5,005		)	10,234
Less: Allocation to participating securities	(69		)	(77		)	(142		)	(155		)
Net (loss) income attributable to common shareholders	$	(2,579	)	$	14,505		$	(5,147	)	$	10,079
Denominator for basic and diluted earnings per common share:
Weighted average common shares outstanding:
Basic	58,280			58,146			58,241			58,122
Diluted	58,280			58,220			58,241			58,190
Basic and diluted earnings per common share:
(Loss) income from continuing operations	$	(0.04	)	$	0.22		$	(0.08	)	$	0.16
Income (loss) from discontinued operations	—			0.03			(0.01		)	0.01
Net (loss) income	$	(0.04	)	$	0.25		$	(0.09	)	$	0.17

In accordance with GAAP regarding earnings per common share, we did not include the following potential weighted average common shares in our calculation of diluted earnings per common share as they are anti-dilutive for the periods presented (amounts in thousands):

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2015	2014	2015	2014
Stock option awards	1,046	1,145	1,069	1,170
Non-vested share awards	405	400	450	419
Series A Preferred Shares(1)	14,868	12,296	13,965	12,480
	16,319	13,841	15,484	14,069

⁽¹⁾  Our Series A Preferred Shares are only convertible into our common shares upon certain changes in control of our Company. The dilutive shares are calculated as the daily average of the face value of the Series A Preferred Shares divided by the outstanding common share price.

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Fair Value Measurements - Fair Value of Assets and Liabilities (Detail) - Recurring Measurements - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Recurring Measurements:
Derivative instrument-swap assets		$ 133
Derivative instrument-swap liabilities	$ 3,770	3,569
Level 1
Recurring Measurements:
Derivative instrument-swap assets		0
Derivative instrument-swap liabilities	0	0
Level 2
Recurring Measurements:
Derivative instrument-swap assets		133
Derivative instrument-swap liabilities	3,770	3,569
Level 3
Recurring Measurements:
Derivative instrument-swap assets		0
Derivative instrument-swap liabilities	$ 0	$ 0

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Investment in Affiliates (Tables)

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Components of Investments in Affiliates

Our investment in affiliates consisted of the following (dollars in thousands):

	Reporting Segment	Ownership Interest		June 30, 2015		December 31, 2014
Prosperity Metro Plaza	Northern Virginia	51	%	$	24,657	$	24,651
1750 H Street, NW	Washington, D.C.	50	%	15,367		14,834
Aviation Business Park	Maryland	50	%	5,867		5,748
RiversPark I and II(1)	Maryland	25	%	2,168		2,249
				$	48,059	$	47,482

⁽¹⁾ RiversPark I and RiversPark II are owned through two separate joint ventures.

Net Assets of Company's Unconsolidated Joint Ventures

The net assets of our unconsolidated joint ventures consisted of the following (dollars in thousands):

	June 30, 2015		December 31, 2014
Assets:
Rental property, net	$	193,861	$	193,533
Cash and cash equivalents	5,828		4,567
Other assets	15,635		16,748
Total assets	215,324		214,848
Liabilities:
Mortgage loans(1)	110,000		110,000
Other liabilities	6,470		7,256
Total liabilities	116,470		117,256
Net assets	$	98,854	$	97,592

⁽¹⁾  Of the total mortgage debt that encumbers our unconsolidated properties, $2.8 million is recourse to us. We believe the fair value of the potential liability to us under this guaranty is inconsequential as the likelihood of our need to perform under the debt agreement is remote.

Results of Operations of Company's Unconsolidated Joint Ventures

The following table summarizes the results of operations of our unconsolidated joint ventures, which, due to our varying ownership interests in the joint ventures and the varying operations of the joint ventures, may not be reflective of the amounts recorded in our consolidated statements of operations (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Total revenues	$	6,063		$	5,780		$	12,230		$	11,531
Total operating expenses	(1,756		)	(1,694		)	(3,912		)	(3,920		)
Net operating income	4,307			4,086			8,318			7,611
Depreciation and amortization	(2,287		)	(2,264		)	(4,536		)	(5,067		)
Other expense, net	(975		)	(1,077		)	(1,948		)	(2,087		)
Net income	$	1,045		$	745		$	1,834		$	457

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Earnings Per Common Share - Computation of Company's Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator for basic and diluted earnings per common share:
Income from continuing operations	$ 476	$ 16,796	$ 1,575	$ 16,211
Income (loss) from discontinued operations	0	1,538	(607)	681
Net income	476	18,334	968	16,892
Less: Net loss (income) from continuing operations attributable to noncontrolling interests	114	(582)	201	(429)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests	0	(70)	26	(29)
Net income attributable to First Potomac Realty Trust	590	17,682	1,195	16,434
Less: Dividends on preferred shares	(3,100)	(3,100)	(6,200)	(6,200)
Net (loss) income attributable to common shareholders	(2,510)	14,582	(5,005)	10,234
Less: Allocation to participating securities	(69)	(77)	(142)	(155)
Net (loss) income attributable to common shareholders	$ (2,579)	$ 14,505	$ (5,147)	$ 10,079
Denominator for basic and diluted earnings per common share:
Basic	58,280	58,146	58,241	58,122
Diluted	58,280	58,220	58,241	58,190
Basic and diluted earnings per common share:
Loss from continuing operations	$ (0.04)	$ 0.22	$ (0.08)	$ 0.16
Income (loss) from discontinued operations	0.00	0.03	(0.01)	0.01
Net (loss) income	$ (0.04)	$ 0.25	$ (0.09)	$ 0.17

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Share-Based Payments

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

Share-Based Payments

We record costs related to our share-based compensation based on the grant-date fair value calculated in accordance with GAAP. We recognize share-based compensation costs on a straight-line basis over the requisite service period for each award and these costs are recorded within “General and administrative expense” or “Property operating expense” in our consolidated statements of operations based on the employee’s job function.

Non-Vested Share Awards

We issue non-vested common share awards that either vest over a specific time period that is identified at the time of issuance or vest upon the achievement of specific performance goals that are identified at the time of issuance. We issue new common shares, subject to restrictions, upon each grant of non-vested common share awards. In May 2015, we granted a total of 31,218 non-vested common shares to our non-employee trustees, all of which will vest on the earlier of the first anniversary of the award date or the date of our 2016 annual meeting of shareholders, subject to continued service by the trustee until that date.

We recognized compensation expense associated with our non-vested common share awards of $0.7 million and $1.3 million during the three and six months ended June 30, 2015, respectively, compared with $0.7 million and $1.4 million during the three and six months ended June 30, 2014, respectively. Dividends on all non-vested common share awards are recorded as a reduction of equity. We apply the two-class method for determining EPS as our outstanding non-vested common shares with non-forfeitable dividend rights are considered participating securities. Our excess of dividends over earnings related to participating securities are shown as a reduction in net income or loss attributable to common shareholders in our computation of EPS.

A summary of our non-vested common share awards at June 30, 2015 is as follows:

	Non-vested Common Shares		Weighted Average Grant Date Fair Value
Non-vested at March 31, 2015	461,615		$	12.83
Granted	31,218		10.57
Vested	(34,835	)	12.96
Non-vested at June 30, 2015	457,998		$	12.67

We value our non-vested time-based share awards at the grant date fair value, which is the market price of our common shares. As of June 30, 2015, we had $3.7 million of unrecognized compensation cost related to non-vested common shares. We anticipate this cost will be recognized over a weighted-average period of 2.0 years.