OTHER ASSETS

Other Assets on the Balance Sheets as of March 31, 2012 and December 31, 2011 included the following (in thousands):



	March 31, 2012		December 31, 2011
Lease inducements, net of amortization of of $3,991 and $3,696 in 2012 and 2011, respectively	$	12,016	$	12,219
Investment in Verde Realty	5,868		5,868
FF&E and leasehold improvements, net of accumulated depreciation of $18,223 and $17,814 in 2012 and 2011, respectively	4,806		4,736
Loan closing costs, net of accumulated amortization of $1,415 and $4,026 in 2012 and 2011, respectively	4,459		1,435
Prepaid expenses and other assets	3,842		2,168
Predevelopment costs and earnest money	1,277		581
Intangible Assets:
In-place leases, net of accumulated amortization of $3,532 and $2,833 in 2012 and 2011, respectively	15,443		16,144
Goodwill	5,155		5,155
Above market leases, net of accumulated amortization of $9,106 and $8,845 in 2012 and 2011, respectively	4,244		4,414
	$	57,110	$	52,720

Investment in Verde Realty relates to a cost method investment in a privately-held real estate investment trust. Goodwill relates entirely to the Office reportable segment. As office assets are sold, either by the Company or by joint ventures in which the Company has an ownership interest, a portion of goodwill is written off to the cost of each sale. There were no changes to goodwill during the 2012 or 2011 quarterly periods ending March 31.