OTHER ASSETS

At December 31, 2012 and 2011, other assets included the following (in thousands):



	2012		2011
Lease inducements, net of accumulated amortization of $4,718 and $3,696 in 2012 and 2011, respectively	$	11,089	$	12,219
FF&E and leasehold improvements, net of accumulated depreciation of $18,877 and $17,814 in 2012 and 2011, respectively	4,814		4,736
Loan closing costs, net of accumulated amortization of $2,624 and $4,026 in 2012 and 2011, respectively	3,704		1,435
Predevelopment costs and earnest money	3,284		581
Prepaid expenses and other assets	2,044		2,168
Investment in Verde Realty	—		5,868
Intangible Assets:
In-place leases, net of accumulated amortization of $5,729 and $2,833 in 2012 and 2011, respectively	21,637		16,144
Above market leases, net of accumulated amortization of $9,424 and $8,845 in 2012 and 2011, respectively	6,892		4,414
Goodwill	4,751		5,155
	$	58,215	$	52,720

Lease Inducements. Lease inducements represent incentives paid to tenants in conjunction with leasing space, such as moving costs, sublease arrangements of prior space and other costs. These amounts are amortized into rental revenues over the individual underlying lease terms.

Predevelopment Costs and Earnest Money. Predevelopment costs represent amounts that are capitalized related to predevelopment projects which the Company determines are probable of future development.

Investment in Verde Realty. The investment in Verde Realty, a cost method investment in a non-public real estate investment trust, was sold in 2012.

Intangible Assets. Intangible assets, other than goodwill, mainly relate to the acquisitions of 2100 Ross Avenue in 2012 and Promenade in 2011 (see note 9), with small amounts remaining relating to the 2006 acquisition of 191 Peachtree Tower. The Company acquired intangible liabilities with these purchases, including above-market and below-market leases, both of which are recorded within other assets and other liabilities on the balance sheets, respectively. Both above-market and below-market tenant leases are amortized into rental property revenues over the individual remaining lease terms. The above-market ground lease associated with 191 Peachtree Tower is amortized into rental property operating expenses over its remaining lease term. In-place leases are amortized into depreciation and amortization expense, also over the individual remaining lease terms. Aggregate net amortization expense related to intangible assets and liabilities was $3.3 million, $305,000 and $4,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Over the next five years and thereafter, aggregate amortization of these intangible assets and liabilities is anticipated to be as follows (in thousands):



	Below Market Rents			Above Market Ground Lease			Above Market Rents		In Place Leases		Total
2013	$	(363	)	$	(9	)	$	1,062	$	4,175	$	4,865
2014	(340		)	(9		)	1,048		3,657		4,356
2015	(326		)	(9		)	978		3,172		3,815
2016	(276		)	(9		)	910		2,689		3,314
2017	(183		)	(9		)	651		1,825		2,284
Thereafter	(391		)	(624		)	2,243		6,119		7,347
	$	(1,879	)	$	(669	)	$	6,892	$	21,637	$	25,981
Weighted average remaining lease term	6 years			74 years			8 years		7 years		10 years

Goodwill relates entirely to the office reporting unit. As office assets are sold, either by the Company or by joint ventures in which the Company has an interest, goodwill is allocated to the cost of each sale. The following is a summary of goodwill activity for the years ended December 31, 2012 and 2011 (in thousands):



	2012			2011
Beginning Balance	$	5,155		$	5,430
Allocated to property sales	(404		)	(275		)
Ending Balance	$	4,751		$	5,155