Impairment Loss on Real Estate Assets (Tables)

12 Months Ended

Dec. 31, 2019

Real Estate [Abstract]

Impairment Loss on Real Estate Assets

Piedmont recorded the following impairment losses on real estate assets for the years ended December 31, 2019, 2018, and 2017 (in thousands):

	2019		2018		2017
The Dupree(1)	$	1,953	$	—	$	—
600 Corporate Drive(2)	7,000		—		—
Disposal Group of 13 Assets(1)	—		—		46,461
Total impairment loss on real estate assets	$	8,953	$	—	$	46,461

⁽¹⁾The impairment loss recognized was the result of reducing the asset's carrying value to reflect its fair value, estimated based on the net contract price negotiated with a unrelated, third-party purchaser.

⁽²⁾ Management shortened the intended hold period for the property, and in doing so determined that the carrying value would not be recovered from the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. As a result, Piedmont recognized a loss on impairment calculated as the difference between the carrying value of the asset and the estimated fair value. The estimated fair value was determined using widely available market quotations for similar properties, as well as discounted cash flow analysis. Key assumptions used in the analysis were a capitalization and discount rate of 14% and estimated selling costs of 0.75%.