Intangible Assets and Below Market Lease Liabilities

6 Months Ended

Jun. 30, 2012

Finite-Lived Intangible Assets [Line Items]

Intangible Assets and Below Market Lease Liabilities

Intangible Assets and Below Market Lease Liabilities

The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:

	June 30, 2012			December 31, 2011
Assets:
Deferred financing costs	$	20,112		$	18,044
Less accumulated amortization	(7,488		)	(5,797		)
	12,624			12,247
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)	177,140			172,049
Less accumulated amortization	(63,084		)	(56,522		)
	114,056			115,527
Deferred financing and leasing costs, net	$	126,680		$	127,774
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities	$	16,346		$	16,441
Less accumulated amortization	(1,966		)	(971		)
	$	14,380		$	15,470

The following table sets forth amortization of intangible assets and acquisition-related below market lease liabilities:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Amortization of deferred financing costs	$	900		$	821		$	1,802		$	1,642
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)	$	7,266		$	4,401		$	13,706		$	8,757
Amortization of lease incentives (in rental and other revenues)	$	340		$	303		$	683		$	641
Amortization of acquisition-related intangible assets (in rental and other revenues)	$	324		$	191		$	594		$	377
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)	$	(553	)	$	(25	)	$	(1,097	)	$	(50	)

5.    Intangible Assets and Below Market Lease Liabilities - Continued

The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:

	Amortization of Deferred Financing Costs		Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)		Amortization of Lease Incentives (in Rental and Other Revenues)		Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)		Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
July 1, 2012 through December 31, 2012	$	2,234	$	14,242	$	772	$	579	$	(1,229	)
2013	3,262		21,834		1,167		765		(2,081		)
2014	2,987		17,877		1,013		504		(2,005		)
2015	2,264		13,879		779		328		(1,768		)
2016	957		10,880		608		280		(1,498		)
Thereafter	920		25,453		2,379		717		(5,799		)
	$	12,624	$	104,165	$	6,718	$	3,173	$	(14,380	)

The weighted average remaining amortization periods for deferred financing costs, deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization), lease incentives (in rental and other revenues), acquisition-related intangible assets (in rental and other revenues) and acquisition-related below market lease liabilities (in rental and other revenues) were 3.8 years, 6.2 years, 7.8 years, 5.7 years and 8.9 years, respectively, as of June 30, 2012.

In connection with the acquisition of an office property in Cary, NC in the second quarter of 2012, we recorded $2.7 million of in-place lease intangible assets with a weighted average amortization period of 6.3 years at the date of the acquisition. The contractual rents of the in-place lease acquired were determined to be at market.

Highwoods Realty Limited Partnership [Member]

Finite-Lived Intangible Assets [Line Items]

Intangible Assets and Below Market Lease Liabilities

Intangible Assets and Below Market Lease Liabilities

The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:

	June 30, 2012			December 31, 2011
Assets:
Deferred financing costs	$	20,112		$	18,044
Less accumulated amortization	(7,488		)	(5,797		)
	12,624			12,247
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)	177,140			172,049
Less accumulated amortization	(63,084		)	(56,522		)
	114,056			115,527
Deferred financing and leasing costs, net	$	126,680		$	127,774
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities	$	16,346		$	16,441
Less accumulated amortization	(1,966		)	(971		)
	$	14,380		$	15,470

The following table sets forth amortization of intangible assets and acquisition-related below market lease liabilities:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Amortization of deferred financing costs	$	900		$	821		$	1,802		$	1,642
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)	$	7,266		$	4,401		$	13,706		$	8,757
Amortization of lease incentives (in rental and other revenues)	$	340		$	303		$	683		$	641
Amortization of acquisition-related intangible assets (in rental and other revenues)	$	324		$	191		$	594		$	377
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)	$	(553	)	$	(25	)	$	(1,097	)	$	(50	)

5.    Intangible Assets and Below Market Lease Liabilities - Continued

The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:

	Amortization of Deferred Financing Costs		Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)		Amortization of Lease Incentives (in Rental and Other Revenues)		Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)		Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
July 1, 2012 through December 31, 2012	$	2,234	$	14,242	$	772	$	579	$	(1,229	)
2013	3,262		21,834		1,167		765		(2,081		)
2014	2,987		17,877		1,013		504		(2,005		)
2015	2,264		13,879		779		328		(1,768		)
2016	957		10,880		608		280		(1,498		)
Thereafter	920		25,453		2,379		717		(5,799		)
	$	12,624	$	104,165	$	6,718	$	3,173	$	(14,380	)

The weighted average remaining amortization periods for deferred financing costs, deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization), lease incentives (in rental and other revenues), acquisition-related intangible assets (in rental and other revenues) and acquisition-related below market lease liabilities (in rental and other revenues) were 3.8 years, 6.2 years, 7.8 years, 5.7 years and 8.9 years, respectively, as of June 30, 2012.

In connection with the acquisition of an office property in Cary, NC in the second quarter of 2012, we recorded $2.7 million of in-place lease intangible assets with a weighted average amortization period of 6.3 years at the date of the acquisition. The contractual rents of the in-place lease acquired were determined to be at market.