12. Leases

Rental Income

During the second quarter of 2017, the Company entered into an industrial gross lease agreement to provide approximately 287 thousand square feet of its office space in San Francisco, California to a tenant for total minimum rental payments of $167.3 million to be received over the term of the lease. The tenant will occupy approximately 43% of the Company owned building, and the agreement provides for escalating rent payments and various lease incentives, including a rent holiday and tenant improvement allowances, that will be straight-lined over the lease term concluding in February 2027. In connection with executing the lease agreement, the Company accrued deferred lease origination costs of $6.5 million. The Company provided the tenant access to the building starting in September 2017, and accordingly recorded both a lease incentive receivable and obligation to pay for $24.9 million of tenant improvements. In addition, the Company commenced its recognition of monthly rental income, net of the lease incentives and amortization of the lease origination costs, within other income and expense, net in the consolidated statement of operations.

As of September 30, 2017, cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands):

Year ending December 31:
Remaining 2017	$	—
2018		6,457
2019		11,345
2020		14,369
2021		20,287
Thereafter		114,877
Total	$	167,335

Lease Commitments

We have entered into operating leases for office facilities. As of September 30, 2017, future minimum lease payments related to these leases are as follows (in thousands):

Year ending December 31:
Remaining 2017	$	1,010
2018		3,895
2019		3,136
2020		1,254
2021		672
Thereafter		33
Total	$	10,000