PREPAID EXPENSES AND OTHER ASSETS

12 Months Ended

Dec. 31, 2012

PREPAID EXPENSES AND OTHER ASSETS

NOTE 7. PREPAID EXPENSES AND OTHER ASSETS

Prepaid expenses and other assets consist of the following (in thousands):

	December 31, 2012		December 31, 2011
Leasing commissions, net of accumulated amortization of $16,829 and $13,015, respectively	$	18,329	$	16,738
Acquired above market leases, net		11,483		16,536
Acquired in-place leases, net		34,308		28,862
Lease incentives, net of accumulated amortization of $2,220 and $1,850, respectively		1,480		1,850
Other intangible assets, net of accumulated amortization of $4,239 and $3,848, respectively		960		986
Debt issuance costs, net of accumulated amortization of $2,374 and $2,188, respectively		3,651		3,280
Purchase deposit		—		3,000
Prepaid expenses, deposits and other		3,459		3,172
Total prepaid expenses and other assets	$	73,670	$	74,424

Lease incentives are amortized over the term of the related lease and included as a reduction of rental income in the statement of income. The purchase deposit at December 31, 2011 relates to the acquisition of One Beach Street, in San Francisco, California. Such acquisition was completed on January 24, 2012 (Note 2).