OTHER ASSETS

Other assets on the balance sheets as of June 30, 2013 and December 31, 2012 included the following (in thousands):



	June 30, 2013		December 31, 2012
Lease inducements, net of accumulated amortization of $3,632 and $4,718 in 2013 and 2012, respectively	$	9,955	$	11,089
FF&E and leasehold improvements, net of accumulated depreciation of $19,406 and $18,877 in 2013 and 2012, respectively	4,985		4,814
Prepaid expenses and other assets	6,373		2,044
Predevelopment costs and earnest money	1,881		3,284
Loan closing costs, net of accumulated amortization of $2,530 and $2,624 in 2013 and 2012, respectively	2,940		3,704
Intangible Assets:
In-place leases, net of accumulated amortization of $11,432 and $5,729 in 2013 and 2012, respectively	50,006		21,637
Above market leases, net of accumulated amortization of $10,233 and $9,424 in 2013 and 2012, respectively	7,167		6,892
Goodwill	4,147		4,751
	$	87,454	$	58,215

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, goodwill is reduced. The following is a summary of goodwill activity for the six months ended June 30, 2013 and 2012 (in thousands):



	Six Months Ended June 30,
	2013			2012
Beginning balance	$	4,751		$	5,155
Allocated to property sales	(604		)	(116		)
Ending balance	$	4,147		$	5,039