Intangible Assets and Below Market Lease Liabilities

9 Months Ended

Sep. 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:

	September 30, 2012			December 31, 2011
Assets:
Deferred financing costs	$	19,952		$	18,044
Less accumulated amortization	(8,115		)	(5,797		)
	11,837			12,247
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)	202,797			172,049
Less accumulated amortization	(65,464		)	(56,522		)
	137,333			115,527
Deferred financing and leasing costs, net	$	149,170		$	127,774
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities	$	28,015		$	16,441
Less accumulated amortization	(2,556		)	(971		)
	$	25,459		$	15,470

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Amortization of deferred financing costs	$	907		$	806		$	2,709		$	2,448
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)	$	6,836		$	5,189		$	20,542		$	13,945
Amortization of lease incentives (in rental and other revenues)	$	393		$	369		$	1,075		$	1,010
Amortization of acquisition-related intangible assets (in rental and other revenues)	$	433		$	239		$	1,027		$	617
Amortization of acquisition-related intangible assets (in rental property and other expenses)	$	46		$	—		$	46		$	—
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)	$	(647	)	$	(230	)	$	(1,744	)	$	(280	)

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 Intangible Assets (in Rental Property and Other Expenses)		Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
October 1 through December 31, 2012	$	1,069	$	7,020	$	349	$	293	$	140	$	(802	)
2013	3,381		25,080		1,286		991		553		(3,168		)
2014	3,009		21,190		1,134		734		553		(3,106		)
2015	2,395		17,216		902		549		553		(2,894		)
2016	1,024		14,047		708		489		553		(2,603		)
Thereafter	959		37,292		2,536		969		2,196		(12,886		)
	$	11,837	$	121,845	$	6,915	$	4,025	$	4,548	$	(25,459	)
Weighted average remaining amortization periods as of September 30, 2012 (in years)	3.6		7.1		7.6		5.6		8.2		9.9

The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2012 acquisition activity:

	Above Market Lease Intangible Assets		In-Place Lease Intangible Assets		Tax Abatement Intangible Assets		Below Market Lease Liabilities
Amount recorded from acquisition activity	$	1,285	$	21,479	$	4,593	$	(11,875	)
Weighted average remaining amortization periods (in years)	5.3		9.2		8.2		11.3

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:

	September 30, 2012			December 31, 2011
Assets:
Deferred financing costs	$	19,952		$	18,044
Less accumulated amortization	(8,115		)	(5,797		)
	11,837			12,247
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)	202,797			172,049
Less accumulated amortization	(65,464		)	(56,522		)
	137,333			115,527
Deferred financing and leasing costs, net	$	149,170		$	127,774
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities	$	28,015		$	16,441
Less accumulated amortization	(2,556		)	(971		)
	$	25,459		$	15,470

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Amortization of deferred financing costs	$	907		$	806		$	2,709		$	2,448
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)	$	6,836		$	5,189		$	20,542		$	13,945
Amortization of lease incentives (in rental and other revenues)	$	393		$	369		$	1,075		$	1,010
Amortization of acquisition-related intangible assets (in rental and other revenues)	$	433		$	239		$	1,027		$	617
Amortization of acquisition-related intangible assets (in rental property and other expenses)	$	46		$	—		$	46		$	—
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)	$	(647	)	$	(230	)	$	(1,744	)	$	(280	)

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 Intangible Assets (in Rental Property and Other Expenses)		Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
October 1 through December 31, 2012	$	1,069	$	7,020	$	349	$	293	$	140	$	(802	)
2013	3,381		25,080		1,286		991		553		(3,168		)
2014	3,009		21,190		1,134		734		553		(3,106		)
2015	2,395		17,216		902		549		553		(2,894		)
2016	1,024		14,047		708		489		553		(2,603		)
Thereafter	959		37,292		2,536		969		2,196		(12,886		)
	$	11,837	$	121,845	$	6,915	$	4,025	$	4,548	$	(25,459	)
Weighted average remaining amortization periods as of September 30, 2012 (in years)	3.6		7.1		7.6		5.6		8.2		9.9

The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2012 acquisition activity:

	Above Market Lease Intangible Assets		In-Place Lease Intangible Assets		Tax Abatement Intangible Assets		Below Market Lease Liabilities
Amount recorded from acquisition activity	$	1,285	$	21,479	$	4,593	$	(11,875	)
Weighted average remaining amortization periods (in years)	5.3		9.2		8.2		11.3