Intangible Assets and Below Market Lease Liabilities

3 Months Ended

Mar. 31, 2013

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:

	March 31, 2013			December 31, 2012
Assets:
Deferred financing costs	$	21,426		$	21,759
Less accumulated amortization	(8,648		)	(7,862		)
	12,778			13,897
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)	237,862			224,554
Less accumulated amortization	(73,824		)	(69,357		)
	164,038			155,197
Deferred financing and leasing costs, net	$	176,816		$	169,094
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities	$	37,538		$	37,019
Less accumulated amortization	(4,319		)	(3,383		)
	$	33,219		$	33,636

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

	Three Months Ended March 31,
	2013			2012
Amortization of deferred financing costs	$	949		$	902
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)	$	8,359		$	6,440
Amortization of lease incentives (in rental and other revenues)	$	383		$	343
Amortization of acquisition-related intangible assets (in rental and other revenues)	$	466		$	270
Amortization of acquisition-related intangible assets (in rental property and other expenses)	$	137		$	—
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)	$	(1,122	)	$	(544	)

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)
April 1 through December 31, 2013	$	2,768	$	24,305	$	965	$	1,372	$	416	$	(3,087	)
2014	3,249		28,125		1,154		1,537		553		(4,009		)
2015	2,614		22,845		926		1,252		553		(3,746		)
2016	1,515		18,485		734		1,023		553		(3,443		)
2017	1,226		15,591		660		908		553		(3,208		)
Thereafter	1,406		36,617		2,105		1,164		1,642		(15,726		)
	$	12,778	$	145,968	$	6,544	$	7,256	$	4,270	$	(33,219	)
Weighted average remaining amortization periods as of March 31, 2013 (in years)	5.0		6.6		7.6		5.4		7.7		9.8

The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2013 acquisition activity:

	Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)		Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)		Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity	$	2,777	$	11,561	$	(1,329	)
Weighted average remaining amortization periods (in years)	4.9		4.8		9.3

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:

	March 31, 2013			December 31, 2012
Assets:
Deferred financing costs	$	21,426		$	21,759
Less accumulated amortization	(8,648		)	(7,862		)
	12,778			13,897
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)	237,862			224,554
Less accumulated amortization	(73,824		)	(69,357		)
	164,038			155,197
Deferred financing and leasing costs, net	$	176,816		$	169,094
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities	$	37,538		$	37,019
Less accumulated amortization	(4,319		)	(3,383		)
	$	33,219		$	33,636

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

	Three Months Ended March 31,
	2013			2012
Amortization of deferred financing costs	$	949		$	902
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)	$	8,359		$	6,440
Amortization of lease incentives (in rental and other revenues)	$	383		$	343
Amortization of acquisition-related intangible assets (in rental and other revenues)	$	466		$	270
Amortization of acquisition-related intangible assets (in rental property and other expenses)	$	137		$	—
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)	$	(1,122	)	$	(544	)

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)
April 1 through December 31, 2013	$	2,768	$	24,305	$	965	$	1,372	$	416	$	(3,087	)
2014	3,249		28,125		1,154		1,537		553		(4,009		)
2015	2,614		22,845		926		1,252		553		(3,746		)
2016	1,515		18,485		734		1,023		553		(3,443		)
2017	1,226		15,591		660		908		553		(3,208		)
Thereafter	1,406		36,617		2,105		1,164		1,642		(15,726		)
	$	12,778	$	145,968	$	6,544	$	7,256	$	4,270	$	(33,219	)
Weighted average remaining amortization periods as of March 31, 2013 (in years)	5.0		6.6		7.6		5.4		7.7		9.8

The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2013 acquisition activity:

	Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)		Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)		Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity	$	2,777	$	11,561	$	(1,329	)
Weighted average remaining amortization periods (in years)	4.9		4.8		9.3