The Company is the lessor for its residential and retail leases (including commercial leases) and these leases will continue to be accounted for as operating leases under the new standard as described in Note 2. Therefore, the Company did not have significant changes in the accounting for its lease revenues.

For the nine months ended September 30, 2019, approximately 97.1% of the Company’s total lease revenue is generated from residential apartment leases that are generally for twelve months or less in length. The residential apartment leases may include lease income related to such items as parking, storage and pet rent that the Company treats as a single lease component because the amenities cannot be leased on their own and the timing and pattern of revenue recognition are the same. The collection of lease payments at lease commencement is probable and therefore the Company subsequently recognizes lease income over the lease term on a straight-line basis. Residential leases are renewable upon consent of both parties on an annual or monthly basis.

For the nine months ended September 30, 2019, approximately 2.9% of the Company’s total lease revenue is generated by retail leases that are generally for terms ranging between 5-10 years. The retail leases generally consist of ground floor retail spaces and master-leased parking garages that serve as additional amenities for our residents. The retail leases may include lease income related to such items as parking and storage rent that the Company treats as a single lease component because the amenities cannot be leased on their own and the timing and pattern of revenue recognition are the same. The collection of lease payments at lease commencement is probable and therefore the Company subsequently recognizes lease income over the lease term on a straight-line basis. Retail leases are renewable with market-based renewal options.

The Company elected the practical expedient to account for both its lease and non-lease components (specifically common area maintenance charges) as a single lease component under the leases standard.

The following table presents the lease income types relating to lease payments for residential and retail leases for the nine months and quarter ended September 30, 2019 (amounts in thousands):

	Nine Months Ended September 30, 2019						Quarter Ended September 30, 2019
Lease Income Type	Residential Leases		Retail Leases		Total		Residential Leases		Retail Leases		Total
Residential and retail rent	$	1,801,749	$	54,616	$	1,856,365	$	611,020	$	18,453	$	629,473
Parking rent		27,874		259		28,133		9,405		100		9,505
Storage rent		2,796		51		2,847		940		20		960
Pet rent		8,714		—		8,714		2,916		—		2,916
Total lease revenue (1)	$	1,841,133	$	54,926	$	1,896,059	$	624,281	$	18,573	$	642,854

The Company is the lessee under various corporate office and ground leases for which the Company recognized ROU assets and related lease liabilities effective January 1, 2019. The following table presents the Company’s ROU assets and related lease liabilities as of September 30, 2019 (amounts in thousands):

	2019
Right-of-use assets:
Corporate office leases	$	43,739
Ground leases (finance)		23,201
Ground leases (operating)		414,104
Right-of-use assets	$	481,044
Lease liabilities:
Corporate office leases	$	45,237
Ground leases (finance)		23,210
Ground leases (operating)		264,865
Lease liabilities	$	333,312

As the standard requires the recognition of a liability for the lease obligation, discount rates are used to determine the net present value of the lease payments. The discount rate for the lease is the rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. As the Company does not know the amount of the lessors’ initial direct costs, it cannot readily determine the rate implicit in the lease and instead must apply the incremental borrowing rate. The Company has estimated the discount rate ranges of 3.3% to 3.9% for corporate office leases and 4.4% to 5.5% for ground leases at adoption. Since the Company’s credit backs the corporate office lease obligations and the lease terms are generally ten years or less, the discount rate range was estimated by using the Company’s borrowing rates for actual pricing data. The discount rate range for ground leases takes into account various factors, including the longer life of the ground leases, and was estimated by using the Company’s borrowing rates for actual pricing data through 30 years and other long-term market rates.

The Company leases nine corporate offices with remaining lease terms of one to 23 years (inclusive of applicable extension options). The Company’s corporate office leases continue to be accounted for as operating leases under the new standard. During the quarter ended September 30, 2019, the Company modified two office leases that continue to be classified as operating leases and recorded an additional lease liability and ROU asset at initial remeasurement of approximately $29.1 million.

The Company leases its corporate headquarters from an entity affiliated with EQR’s Chairman of the Board of Trustees. The lease term expires on November 30, 2032 and contains two five-year extension options. The amount incurred for such office space for the nine months and quarter ended September 30, 2019 was approximately $2.0 million and $0.7 million, respectively. The Company believes this amount approximates market rates for such rental space.

The Company maintains long-term ground leases for 14 operating properties and one project under development with lease expiration dates ranging from 2042 through 2113 (inclusive of applicable purchase options). The Company owns the building and improvements. Based on its election of the package of practical expedients, the Company was not required to reassess the classification of existing ground leases and therefore the 14 operating property leases continue to be accounted for as operating leases. During the quarter ended September 30, 2019, the Company entered into a new ground lease for a project under development that is being accounted for as a finance lease and recorded an initial lease liability and ROU asset of approximately $23.2 million.

The following table illustrates the quantitative disclosures for lessees as of and for the nine months and quarter ended September 30, 2019 (amounts in thousands):

	Nine Months Ended September 30, 2019		Quarter Ended September 30, 2019
Lease cost:
Finance lease cost:
Amortization of right-of-use assets	$	—	$	—
Interest on lease liabilities (capitalized)		55		55
Operating lease cost:
Corporate office leases		2,753		935
Ground leases		16,650		5,550
Short-term lease cost:
Corporate office leases		168		56
Ground leases		—		—
Variable lease cost:
Corporate office leases		1,130		361
Ground leases		2,575		880
Total lease cost	$	23,331	$	7,837

The following table illustrates the quantitative disclosures for lessees as of and for the nine months ended September 30, 2019 (amounts in thousands):

	September 30, 2019
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Investing cash flows from finance leases (capitalized)	$	47
Operating cash flows from operating leases:
Corporate office leases	$	4,128
Ground leases	$	12,035
ROU assets obtained in exchange for new finance lease liabilities	$	23,201
ROU assets obtained in exchange for new operating lease liabilities:
Corporate office leases	$	45,791
Ground leases	$	422,018
Weighted-average remaining lease term – finance leases	19.9 years
Weighted-average remaining lease term – operating leases:
Corporate office leases	19.2 years
Ground leases	56.4 years
Weighted-average discount rate – finance leases		3.0	%
Weighted-average discount rate – operating leases:
Corporate office leases		3.2	%
Ground leases		5.0	%

The following table summarizes the Company’s undiscounted cash flows for contractual obligations for minimum rent payments/receipts under operating and financing leases for the next five years and thereafter as of September 30, 2019:

(Payments)/Receipts Due by Year (in thousands)
	Remaining 2019			2020			2021			2022			2023			2024			Thereafter			Total
Finance Leases:
Minimum Rent Payments (a)	$	(141	)	$	(567	)	$	(578	)	$	(590	)	$	(601	)	$	(614	)	$	(33,850	)	$	(36,941	)
Operating Leases:
Minimum Rent Payments (a)	$	(4,175	)	$	(16,840	)	$	(16,862	)	$	(16,602	)	$	(16,687	)	$	(17,014	)	$	(977,238	)	$	(1,065,418	)
Minimum Rent Receipts (b)	$	16,194		$	63,409		$	60,140		$	56,624		$	49,150		$	41,950		$	149,208		$	436,675

The following table provides a reconciliation of lease liabilities from our undiscounted cash flows for minimum rent payments as of September 30, 2019 (amounts in thousands):