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Lease Intangibles
 3 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Lease Intangibles
Lease Intangibles

Upon acquisitions of real estate, the Company assesses the fair value of acquired assets (including land, buildings and improvements, and identified intangibles such as above- and below-market leases, including below- market options and acquired in-place leases) and assumed liabilities. The lease intangibles are amortized over the remaining terms of the respective leases, including option periods where applicable.

Intangible assets and liabilities are summarized as follows (in thousands):
 
March 31, 2018
 
December 31, 2017
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Amortizable Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
In-place lease intangible assets
$
199,740

 
$
(81,262
)
 
$
118,478

 
$
193,821

 
$
(72,749
)
 
$
121,072

Above-market rent
17,366

 
(10,794
)
 
6,572

 
16,786

 
(10,287
)
 
6,499

 
$
217,106

 
$
(92,056
)
 
$
125,050

 
$
210,607

 
$
(83,036
)
 
$
127,571

 
 
 
 
 
 
 
 
 
 
 
 
Amortizable Intangible Liabilities
 
 
 
 
 
 
 
 
 
 
 
Below-market rent
$
(150,211
)
 
$
46,560

 
$
(103,651
)
 
$
(147,232
)
 
$
43,391

 
$
(103,841
)
Above-market ground lease
(671
)
 
49

 
(622
)
 
(671
)
 
34

 
(637
)
 
$
(150,882
)
 
$
46,609

 
$
(104,273
)
 
$
(147,903
)
 
$
43,425

 
$
(104,478
)


During the three months ended March 31, 2018, the Company acquired in-place lease intangible assets of $5.9 million, above-market rents of $0.6 million, and below-market rents of $3.0 million with weighted-average useful lives of 4.6, 1.1, and 25.7 years, respectively. During the year ended December 31, 2017, the Company acquired in-place lease intangible assets of $41.6 million, above-market rents of $2.7 million, below-market rents of $10.9 million, and an above-market ground lease of $0.7 million with weighted-average useful lives of 4.1, 4.8, 12.1, and 11.5 years, respectively. 

Amortization of in-place lease intangible assets is recorded in depreciation and amortization expense and amortization of above-market rent and below-market rent is recorded as a reduction to and increase to rental income, respectively, in the consolidated statements of income. Amortization of above-market ground leases are recorded as a reduction to rent expense in the consolidated statements of income.

The scheduled amortization of acquired lease intangible assets and assumed liabilities as of March 31, 2018 is as follows (in thousands):
Years Ending December 31,
 
Net Increase in Lease Revenues
 
Increase to Amortization
 
Reduction of Rent Expense
 
Net Income (Expense)
2018 (Remainder)
 
$
6,219

 
$
(19,544
)
 
$
44

 
$
(13,281
)
2019
 
9,596

 
(23,316
)
 
58

 
(13,662
)
2020
 
8,830

 
(17,389
)
 
58

 
(8,501
)
2021
 
7,650

 
(12,760
)
 
58

 
(5,052
)
2022
 
7,353

 
(8,949
)
 
58

 
(1,538
)
Thereafter
 
57,431

 
(36,520
)
 
346

 
21,257

Total
 
$
97,079

 
$
(118,478
)
 
$
622

 
$
(20,777
)