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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
Tenant Lessor Arrangements
The majority of lease payments we receive from our residents are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases for the years ended December 31, 2023, 2022, and 2021 (in thousands):
202320222021
Fixed lease income$752,068 $715,060 $685,423 
Variable lease income56,060 47,358 46,246 
Total lease income$808,128 $762,418 $731,669 
Generally, our residential leases do not provide extension options and, as of December 31, 2023, have an average remaining term of 8.7 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of December 31, 2023, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands):
2024$420,571 
202585,348 
202612,975 
202711,066 
20289,411 
Thereafter30,685 
Total$570,056 
Lessee Arrangements
We recognize right-of-use assets and related lease liabilities, which are included in other assets, net and accrued liabilities and other, respectively, in our consolidated balance sheets. We estimated the value of the lease liabilities using a discount rate equivalent to the rate we would pay on a secured borrowing with similar terms to the lease.
Substantially all of the payments under our ground and office leases are fixed. We exclude options to extend the lease in our minimum lease terms unless the option is reasonably certain to be exercised. During 2022, we assumed a ground lease for a property acquired in the Washington, D.C. area. Our total lease cost for ground and office leases for the years ended December 31, 2023, 2022, and 2021 was $21.5 million, $15.4 million, and $5.3 million, respectively.
As of December 31, 2023, the ground and office leases have weighted-average remaining terms of 88.0 and 5.2 years, respectively, and weighted-average discount rates of 6.8% and 3.8%, respectively. As of December 31, 2023, minimum annual rental payments under these operating leases, reconciled to the lease liability included in accrued liabilities and other in our consolidated balance sheets, are as follows (in thousands):
2024$8,053 
20258,084 
20268,390 
20278,344 
202820,945 
Thereafter1,695,808 
Total1,749,624 
Less: Discount1,613,987 
Total lease liability$135,637 
Of the total lease liability as of December 31, 2023, $128.1 million of the balance relates to our ground leases, with the remainder relating to our office leases.
Lessee, Operating Leases Leases
Tenant Lessor Arrangements
The majority of lease payments we receive from our residents are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases for the years ended December 31, 2023, 2022, and 2021 (in thousands):
202320222021
Fixed lease income$752,068 $715,060 $685,423 
Variable lease income56,060 47,358 46,246 
Total lease income$808,128 $762,418 $731,669 
Generally, our residential leases do not provide extension options and, as of December 31, 2023, have an average remaining term of 8.7 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of December 31, 2023, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands):
2024$420,571 
202585,348 
202612,975 
202711,066 
20289,411 
Thereafter30,685 
Total$570,056 
Lessee Arrangements
We recognize right-of-use assets and related lease liabilities, which are included in other assets, net and accrued liabilities and other, respectively, in our consolidated balance sheets. We estimated the value of the lease liabilities using a discount rate equivalent to the rate we would pay on a secured borrowing with similar terms to the lease.
Substantially all of the payments under our ground and office leases are fixed. We exclude options to extend the lease in our minimum lease terms unless the option is reasonably certain to be exercised. During 2022, we assumed a ground lease for a property acquired in the Washington, D.C. area. Our total lease cost for ground and office leases for the years ended December 31, 2023, 2022, and 2021 was $21.5 million, $15.4 million, and $5.3 million, respectively.
As of December 31, 2023, the ground and office leases have weighted-average remaining terms of 88.0 and 5.2 years, respectively, and weighted-average discount rates of 6.8% and 3.8%, respectively. As of December 31, 2023, minimum annual rental payments under these operating leases, reconciled to the lease liability included in accrued liabilities and other in our consolidated balance sheets, are as follows (in thousands):
2024$8,053 
20258,084 
20268,390 
20278,344 
202820,945 
Thereafter1,695,808 
Total1,749,624 
Less: Discount1,613,987 
Total lease liability$135,637 
Of the total lease liability as of December 31, 2023, $128.1 million of the balance relates to our ground leases, with the remainder relating to our office leases.