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Deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net
Deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net

The following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market operating leases, in-place leases and below-market ground lease obligation) and intangible liabilities (acquired value of below-market operating leases and above-market ground lease obligation) as of December 31, 2019 and 2018:

 
December 31, 2019
 
December 31, 2018
 
(in thousands)
Deferred Leasing Costs and Acquisition-related Intangible Assets, net:
 
 
 
Deferred leasing costs
$
286,026

 
$
266,905

Accumulated amortization
(100,145
)
 
(100,805
)
Deferred leasing costs, net
185,881

 
166,100

Above-market operating leases
611

 
2,836

Accumulated amortization
(116
)
 
(2,150
)
Above-market operating leases, net
495

 
686

In-place leases
58,076

 
66,526

Accumulated amortization
(31,647
)
 
(36,174
)
In-place leases, net
26,429

 
30,352

Below-market ground lease obligation
—

 
490

Accumulated amortization
—

 
(54
)
Below-market ground lease obligation, net (1)
—

 
436

Total deferred leasing costs and acquisition-related intangible assets, net
$
212,805

 
$
197,574

Acquisition-related Intangible Liabilities, net: (2)
 
 
 
Below-market operating leases
$
51,263

 
$
53,523

Accumulated amortization
(27,171
)
 
(29,978
)
Below-market operating leases, net
24,092

 
23,545

Above-market ground lease obligation
—

 
6,320

Accumulated amortization
—

 
(727
)
Above-market ground lease obligation, net (1)
—

 
5,593

Total acquisition-related intangible liabilities, net
$
24,092

 
$
29,138

_______________
(1)
Upon adoption of Topic 842 on January 1, 2019 (refer to Note 2 “Basis of Presentation and Significant Accounting Policies”), we no longer separately recognize above or below-market ground lease obligations. Such amounts are reflected in the net book value of the right of use ground lease asset on our consolidated balance sheets. Refer to Note 18 “Commitments and Contingencies” for further discussion of our ground lease obligations.
(2)
Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets.


The following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles for the years ended December 31, 2019, 2018 and 2017.
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
Deferred leasing costs (1)
$
35,779

 
$
34,341

 
$
31,675

Above-market operating leases (2)
192

 
444

 
2,240

In-place leases (1)
18,615

 
15,915

 
18,650

Below-market ground lease obligation (3)
—

 
8

 
8

Below-market operating leases (4)
(9,398
)
 
(10,192
)
 
(10,768
)
Above-market ground lease obligation (3)
—

 
(101
)
 
(101
)
Total
$
45,188

 
$
40,415

 
$
41,704

_______________
(1)
The amortization of deferred leasing costs and in-place leases is recorded to depreciation and amortization expense and the amortization of lease incentives is recorded as a reduction to rental income in the consolidated statements of operations for the periods presented.
(2)
The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented.
(3)
Upon adoption of Topic 842 on January 1, 2019 (refer to Note 2 “Basis of Presentation and Significant Accounting Policies”), we no longer separately recognize above or below-market ground lease obligations. Refer to Note 18 “Commitments and Contingencies” for further discussion of our ground lease obligations.
(4)
The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented.

The following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of December 31, 2019 for future periods:

Year
Deferred Leasing Costs
 
Above-Market Operating Leases (1)
 
In-Place Leases
 
Below-Market Operating Leases (2)
 
(in thousands)
2020
30,897

 
38

 
11,379

 
(7,258
)
2021
27,043

 
38

 
6,668

 
(4,543
)
2022
23,642

 
38

 
4,001

 
(3,553
)
2023
19,904

 
38

 
1,641

 
(1,866
)
2024
16,976

 
38

 
602

 
(1,090
)
Thereafter
67,419

 
305

 
2,138

 
(5,782
)
Total
$
185,881

 
$
495

 
$
26,429

 
$
(24,092
)
_______________
(1)
Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations.
(2)
Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations.