OTHER ASSETS

Other Assets on the Balance Sheets as of June 30, 2012 and December 31, 2011 included the following (in thousands):



	June 30, 2012		December 31, 2011
Lease inducements, net of amortization of of $4,231 and $3,696 in 2012 and 2011, respectively	$	11,517	$	12,219
Investment in Verde Realty	5,868		5,868
FF&E and leasehold improvements, net of accumulated depreciation of $18,568 and $17,814 in 2012 and 2011, respectively	4,953		4,736
Loan closing costs, net of accumulated amortization of $2,150 and $4,026 in 2012 and 2011, respectively	4,248		1,435
Prepaid expenses and other assets	3,372		2,168
Predevelopment costs and earnest money	1,477		581
Intangible Assets:
In-place leases, net of accumulated amortization of $4,187 and $2,833 in 2012 and 2011, respectively	14,790		16,144
Goodwill	5,039		5,155
Above market leases, net of accumulated amortization of $9,165 and $8,845 in 2012 and 2011, respectively	4,094		4,414
	$	55,358	$	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. The following is a summary of goodwill activity for the six months ended June 30, 2012. There were no changes for the six month 2011 period (see Notes 5 and 9 for additional information regarding property sales):



	Goodwill
Balance, December 31, 2011	$	5,155
Allocated to property sales	(116		)
Balance, June 30, 2012	$	5,039