Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value of Assets and Liabilities

Schedule of assets and liabilities measured at fair value

				Fair Value at Reporting Date Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Recurring Fair Value Measurements:
Effective portion of interest rate contracts(1)	$	(11,706	)	$	—	$	(11,706	)	$	—
Non-Recurring Fair Value Measurements:
Properties held for sale(2)	$	464,299		$	—	$	—		$	464,299

⁽¹⁾

The fair value of our interest rate swap contracts is determined using the net discounted cash flows of the expected cash flows of each derivative based on the market based interest rate curve (level 2 inputs) and adjusted for our credit spread and the actual and estimated credit spreads of the counterparties (level 3 inputs). Although we have determined that the majority of the inputs used to value our derivatives fall within level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and the counterparties. As of December 31, 2013, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified as level 2 inputs in the fair value hierarchy.

⁽²⁾

As of December 31, 2013, we recorded a net loss on asset impairment totaling $204,036 (excluding $23,086 of asset impairment recorded on properties sold during 2013) for three of our CBD properties (four buildings) and 36 of our suburban properties (89 buildings) to reduce the aggregate carrying value of these properties from $668,335 to their estimated fair value of $471,457, reflected in the table below, less costs to sell of $464,299. All of these properties were classified as held for sale as of December 31, 2013. We used third party broker information, independent appraisals and sales comparables (level 3 inputs), in determining the fair value of these properties. The valuation techniques and significant unobservable inputs used for our level 3 fair value measurements at December 31, 2013 were as follows:

Description	Fair Value at December 31, 2013		Primary Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Properties held for sale on which we recognized impairment losses	$	471,457	Discounted cash flows	Discount rate	9% - 12% (10.3%)
				Exit capitalization rate	8% - 10% (8.8%)

Schedule of valuation techniques and significant unobservable inputs used for level 3 fair value measurements

Description	Fair Value at December 31, 2013		Primary Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Properties held for sale on which we recognized impairment losses	$	471,457	Discounted cash flows	Discount rate	9% - 12% (10.3%)
				Exit capitalization rate	8% - 10% (8.8%)

Schedule of effects of interest rate derivatives on our consolidated statements of operations and consolidated statements of comprehensive (loss) income

	Year Ended December 31,
	2013			2012			2011
Balance at beginning of year	($	16,624	)	($	15,796	)	($	6,956	)
Amount of loss recognized in cumulative other comprehensive (loss) income		(103	)		(5,790	)		(13,804	)
Amount of loss reclassified from cumulative other comprehensive (loss) income into interest expense		5,021			4,962			4,964
Unrealized gain (loss) on derivative instruments		4,918			(828	)		(8,840	)
Balance at end of year	($	11,706	)	($	16,624	)	($	15,796	)

Fair value and carrying value of financial instruments

	December 31, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Senior notes and mortgage notes payable	$	2,097,164	$	2,143,834	$	2,932,951	$	3,181,522