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Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases Leases
Lessor
The Company leases commercial and industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred.
The Company recognized $280.7 million and $234.9 million of lease income related to operating lease payments for the nine months ended September 30, 2021 and 2020, respectively.
The Company's current leases have expirations ranging from 2021 to 2044. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of September 30, 2021:
As of September 30, 2021
Remaining 2021$94,352 
2022379,538 
2023371,581 
2024330,866 
2025288,608 
Thereafter1,270,814 
Total$2,735,759 
The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles.
Lessee
Certain of the Company’s real estate are subject to ground leases. The Company’s ground leases are classified as either operating leases or financing leases based on the characteristics of each lease. As of September 30, 2021, the Company had four ground leases classified as operating and two ground leases classified as financing. Each of the Company’s ground leases were acquired as part of the acquisition of real estate and no incremental costs were incurred for such ground leases. The Company’s ground leases are non-cancelable, and contain no renewal options. The Company's Chicago office space lease has a remaining lease term of approximately four years and no option to renew.
The Company incurred operating lease costs of approximately $2.8 million for the nine months ended September 30, 2021 and 2020, which are included in “Property Operating Expense” in the accompanying consolidated statement of operations. Total cash paid for amounts included in the measurement of operating lease liabilities was $1.2 million for each of the nine months ended September 30, 2021 and 2020.
The following table sets forth the weighted-average for the lease term and the discount rate as of September 30, 2021:
Lease Term and Discount RateAs of September 30, 2021
Weighted-average remaining lease term in years.74 years
Weighted-average discount rate (1)
4.82 %
(1) Because the rate implicit in each of the Company's leases was not readily determinable, the Company used an incremental borrowing rate. In determining the Company's incremental borrowing rate for each lease, the Company considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness, the impact of collateralization and the term of each of the Company's lease agreements.
Maturities of lease liabilities as of September 30, 2021 were as follows:
As of September 30, 2021
Operating Financing
Remaining 2021$422 $345 
20221,730 350 
20231,796 355 
20241,831 360 
20251,783 370 
20261,716 375 
Thereafter284,459 3,820 
Total undiscounted lease payments293,737 5,975 
Less: imputed interest(246,668)(2,235)
Total lease liabilities$47,069 $3,740 
Leases Leases
Lessor
The Company leases commercial and industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred.
The Company recognized $280.7 million and $234.9 million of lease income related to operating lease payments for the nine months ended September 30, 2021 and 2020, respectively.
The Company's current leases have expirations ranging from 2021 to 2044. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of September 30, 2021:
As of September 30, 2021
Remaining 2021$94,352 
2022379,538 
2023371,581 
2024330,866 
2025288,608 
Thereafter1,270,814 
Total$2,735,759 
The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles.
Lessee
Certain of the Company’s real estate are subject to ground leases. The Company’s ground leases are classified as either operating leases or financing leases based on the characteristics of each lease. As of September 30, 2021, the Company had four ground leases classified as operating and two ground leases classified as financing. Each of the Company’s ground leases were acquired as part of the acquisition of real estate and no incremental costs were incurred for such ground leases. The Company’s ground leases are non-cancelable, and contain no renewal options. The Company's Chicago office space lease has a remaining lease term of approximately four years and no option to renew.
The Company incurred operating lease costs of approximately $2.8 million for the nine months ended September 30, 2021 and 2020, which are included in “Property Operating Expense” in the accompanying consolidated statement of operations. Total cash paid for amounts included in the measurement of operating lease liabilities was $1.2 million for each of the nine months ended September 30, 2021 and 2020.
The following table sets forth the weighted-average for the lease term and the discount rate as of September 30, 2021:
Lease Term and Discount RateAs of September 30, 2021
Weighted-average remaining lease term in years.74 years
Weighted-average discount rate (1)
4.82 %
(1) Because the rate implicit in each of the Company's leases was not readily determinable, the Company used an incremental borrowing rate. In determining the Company's incremental borrowing rate for each lease, the Company considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness, the impact of collateralization and the term of each of the Company's lease agreements.
Maturities of lease liabilities as of September 30, 2021 were as follows:
As of September 30, 2021
Operating Financing
Remaining 2021$422 $345 
20221,730 350 
20231,796 355 
20241,831 360 
20251,783 370 
20261,716 375 
Thereafter284,459 3,820 
Total undiscounted lease payments293,737 5,975 
Less: imputed interest(246,668)(2,235)
Total lease liabilities$47,069 $3,740