Disclosure About Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Disclosure About Fair Value of Financial Instruments [Line Items]

Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests

The following tables set forth the assets, noncontrolling interests in the Operating Partnership and liabilities that we measure at fair value by level within the fair value hierarchy. We determine the level based on the lowest level of substantive input used to determine fair value.

11. Disclosure About Fair Value of Financial Instruments – Continued

			Level 1		Level 2		Level 3
	December 31, 2012		Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Observable Inputs		Significant Unobservable Inputs
Assets:
Mortgages and notes receivable, at fair value (1)	$	24,725	$	—	$	16,077	$	8,648
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)	3,354		3,354		—		—
Tax increment financing bond (in prepaid expenses and other assets)	14,496		—		—		14,496
Total Assets	$	42,575	$	3,354	$	16,077	$	23,144
Noncontrolling Interests in the Operating Partnership	$	124,869	$	124,869	$	—	$	—
Liabilities:
Mortgages and notes payable, at fair value (1)	$	1,987,364	$	—	$	1,987,364	$	—
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)	9,369		—		9,369		—
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)	3,354		3,354		—		—
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)	563		—		—		563
Financing obligations, at fair value (1)	23,252		—		—		23,252
Total Liabilities	$	2,023,902	$	3,354	$	1,996,733	$	23,815

			Level 1		Level 2		Level 3
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Observable Inputs		Significant Unobservable Inputs
Assets:
Mortgages and notes receivable, at fair value (1)	$	18,990	$	—	$	18,990	$	—
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)	3,149		3,149		—		—
Tax increment financing bond (in prepaid expenses and other assets)	14,788		—		—		14,788
Impaired real estate assets and for-sale residential condominiums	12,767		—		—		12,767
Total Assets	$	49,694	$	3,149	$	18,990	$	27,555
Noncontrolling Interests in the Operating Partnership	$	110,655	$	110,655	$	—	$	—
Liabilities:
Mortgages and notes payable, at fair value (1)	$	1,959,438	$	—	$	1,959,438	$	—
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)	2,202		—		2,202		—
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)	3,149		3,149		—		—
Financing obligations, at fair value (1)	17,572		—		—		17,572
Total Liabilities	$	1,982,361	$	3,149	$	1,961,640	$	17,572

__________

(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at December 31, 2012 and 2011, respectively.

Fair Value Measurements, Unobservable Inputs Reconciliation

The following table sets forth the changes in our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets on a recurring basis:

	December 31,
	2012			2011
Asset:
Tax Increment Financing Bond:
Beginning balance	$	14,788		$	15,699
Principal repayment	(703		)	(1,145		)
Unrealized gains (in AOCL)	411			234
Ending balance	$	14,496		$	14,788
Liability:
Contingent Consideration to Acquire Real Estate Assets:
Beginning balance	$	—		$	—
Fair value at acquisition date	677			—
Unrealized gains (in general and administrative expenses)	(114		)	—
Ending balance	$	563		$	—

Fair Value Measurements, Valuation Techniques

The following table sets forth quantitative information about the unobservable inputs of our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets on a recurring basis:

	Fair Value at December 31, 2012		Valuation Technique	Unobservable Input	Rate/ Percentage
Asset:
Tax increment financing bond	$	14,496	Income approach	Discount rate	10.34	%
Liability:
Contingent consideration to acquire real estate assets	$	563	Income approach	Payout percentage	75.00	%

Highwoods Realty Limited Partnership [Member]

Disclosure About Fair Value of Financial Instruments [Line Items]

Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests

The following tables set forth the assets and liabilities that we measure at fair value by level within the fair value hierarchy. We determine the level based on the lowest level of substantive input used to determine fair value.

11. Disclosure About Fair Value of Financial Instruments – Continued

			Level 1		Level 2		Level 3
	December 31, 2012		Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Observable Inputs		Significant Unobservable Inputs
Assets:
Mortgages and notes receivable, at fair value (1)	$	24,725	$	—	$	16,077	$	8,648
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)	3,354		3,354		—		—
Tax increment financing bond (in prepaid expenses and other assets)	14,496		—		—		14,496
Total Assets	$	42,575	$	3,354	$	16,077	$	23,144
Liabilities:
Mortgages and notes payable, at fair value (1)	$	1,987,364	$	—	$	1,987,364	$	—
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)	9,369		—		9,369		—
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)	3,354		3,354		—		—
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)	563		—		—		563
Financing obligations, at fair value (1)	23,252		—		—		23,252
Total Liabilities	$	2,023,902	$	3,354	$	1,996,733	$	23,815

			Level 1		Level 2		Level 3
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Observable Inputs		Significant Unobservable Inputs
Assets:
Mortgages and notes receivable, at fair value (1)	$	18,990	$	—	$	18,990	$	—
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)	3,149		3,149		—		—
Tax increment financing bond (in prepaid expenses and other assets)	14,788		—		—		14,788
Impaired real estate assets and for-sale residential condominiums	12,767		—		—		12,767
Total Assets	$	49,694	$	3,149	$	18,990	$	27,555
Liabilities:
Mortgages and notes payable, at fair value (1)	$	1,959,438	$	—	$	1,959,438	$	—
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)	2,202		—		2,202		—
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)	3,149		3,149		—		—
Financing obligations, at fair value (1)	17,572		—		—		17,572
Total Liabilities	$	1,982,361	$	3,149	$	1,961,640	$	17,572

__________

(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at December 31, 2012 and 2011, respectively.

Fair Value Measurements, Unobservable Inputs Reconciliation

The following table sets forth the changes in our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets on a recurring basis:

	December 31,
	2012			2011
Asset:
Tax Increment Financing Bond:
Beginning balance	$	14,788		$	15,699
Principal repayment	(703		)	(1,145		)
Unrealized gains (in AOCL)	411			234
Ending balance	$	14,496		$	14,788
Liability:
Contingent Consideration to Acquire Real Estate Assets:
Beginning balance	$	—		$	—
Fair value at acquisition date	677			—
Unrealized gains (in general and administrative expenses)	(114		)	—
Ending balance	$	563		$	—

Fair Value Measurements, Valuation Techniques

The following table sets forth quantitative information about the unobservable inputs of our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets on a recurring basis:

	Fair Value at December 31, 2012		Valuation Technique	Unobservable Input	Rate/ Percentage
Asset:
Tax increment financing bond	$	14,496	Income approach	Discount rate	10.34	%
Liability:
Contingent consideration to acquire real estate assets	$	563	Income approach	Payout percentage	75.00	%