Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments

The Company had a total of $102.5 million in future obligations under leases to fund tenant improvements and in other future construction obligations at December 31, 2014. The Company had outstanding letters of credit and performance bonds totaling $2.4 million at December 31, 2014. The Company recorded lease expense of $1.3 million, $1.1 million, and $963,000 in 2014, 2013, and 2012, respectively. The Company has future lease commitments under ground leases and operating leases totaling $146.7 million over weighted average remaining terms of 86.6 and 1.7 years, respectively. Amounts due under these lease commitments are as follows (in thousands):

2015	$	1,780
2016	1,811
2017	1,737
2018	1,696
2019	1,657
Thereafter	138,063
	$	146,744

Litigation

The Company is subject to various legal proceedings, claims and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. The Company does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote or where the estimated loss would not be material. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business or financial condition of the Company.