Fair Value of Financial Instruments and Investments (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Fair Value of Assets and Liabilities Measured On Recurring and Non-Recurring Basis

The following items are measured at fair value on a recurring and non-recurring basis at September 30, 2012 and December 31, 2011 (in thousands):

	As of September 30, 2012
				Fair Value Measurements Using:
	Total Fair Value			Quoted Markets Prices (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets (Liabilities)
Recurring Fair Value Measurements:
Cash and Cash Equivalents	$	137,467		$	137,467	$	0		$	0
Interest Rate Swaps at Fair Value—Non Qualifying Hedges	$	(605	)	$	0	$	(605	)	$	0
Interest Rate Swaps at Fair Value—Qualifying Hedges	$	(14,002	)	$	0	$	(14,002	)	$	0
Investment in CBRE Strategic Partners Asia	$	7,779		$	0	$	0		$	7,779
Class B Interest	$	(200	)	$	0	$	0		$	(200	)
Note Payable at Fair Value	$	(9,208	)	$	0	$	0		$	(9,208	)

	As of December 31, 2011
				Fair Value Measurements Using:
	Total Fair Value			Quoted Markets Prices (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets (Liabilities)
Recurring Fair Value Measurements:
Cash and Cash Equivalents	$	184,160		$	184,160	$	0		$	0
Interest Rate Swaps at Fair Value—Non Qualifying Hedges	$	(958	)	$	0	$	(958	)	$	0
Interest Rate Swaps at Fair Value—Qualifying Hedges	$	(12,340	)	$	0	$	(12,340	)	$	0
Investment in CBRE Strategic Partners Asia	$	8,381		$	0	$	0		$	8,381
Note Payable at Fair Value	$	(8,775	)	$	0	$	0		$	(8,775	)

Investment in CBRE Strategic Partners Asia Measured At Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents our activity for our investment in CBRE Strategic Partners Asia, the variable-rate note payable and the Class B Interest measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2012 (in thousands):

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)	Investment in CBRE Strategic Partners Asia			Note Payable			Class B Interest
Balance at January 1, 2012	$	8,381		$	(8,775	)	$	0
Contributions		2,029			0			0
Distributions		(2,400	)		0			0
Fair Value Adjustment		(231	)		(85	)		(200	)
Translation Adjustment in Other Comprehensive Income	$	0			(348	)		0
Balance at September 30, 2012	$	7,779		$	(9,208	)	$	(200	)
The Amount of Total Loss for the Period Included in the ending balance at September 30, 2012	$	(231	)	$	(85	)	$	(200	)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)	Investment in CBRE Strategic Partners Asia			Note Payable
Balance at January 1, 2011	$	9,471		$	(8,769	)
Contributions		457			0
Distributions		0			0
Total Loss on Fair Value Adjustment		(603	)		41
Translation Adjustment in Other Comprehensive Income		0			(12	)
Balance at September 30, 2011	$	9,325		$	(8,740	)
The Amount of Total Income (Loss) for the Period Included in the ending balance at September 30, 2011	$	(603	)	$	41

Summary of Effect of Movements in Interest Rate Markets

The following table summarizes the results of the analysis performed (dollars in thousands):

Type of Instrument	Notional Amount		Maturity Date		Effects of Change in Interest Rates
					-100 Basis Points			-50 Basis Points			+50 Basis Points		+100 Basis Points
Non-qualifying Interest Rate Swap on Thames Valley Retail Park debt(1)	$	9,107		May 30, 2013		(24	)		(23	)		23		46
Non-qualifying Interest Rate Swap on Albion Mills debt(1)	$	9,227		October 10, 2013		(48	)		(46	)		46		92
Qualifying Interest Rate Swap on Maskew Retail Park debt(1)	$	22,566		August 10, 2014		(220	)		(204	)		202		401
Qualifying Interest Rate Swap on Pacific Corporate Park debt	$	79,750		December 7, 2017		(2,514	)		(1,783	)		1,772		3,728
Qualifying Interest Rate Swap on 100 Kimball Drive debt	$	32,023		March 1, 2021		(2,133	)		(1,160	)		1,122		2,313
Qualifying Interest Rate Swap on Kings Mountain III debt	$	11,401		July 1, 2018		(477	)		(289	)		285		598

⁽¹⁾  Based on three month GBP-based LIBOR BBA Index with variable rate reset dates every 90 days during the term of the swaps.

Summary of Notes Payable and Estimated Fair Value

For disclosure purposes only, the following table summarizes our notes payable and loan payable and their estimated fair value at September 30, 2012 and December 31, 2011 (in thousands):

	Book Value				Fair Value
Financial Instrument	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011
Notes Payable(1)	$	619,275	$	630,146	$	654,145	$	656,135
Note Payable at Fair Value(1)		9,208		8,775		9,208		8,775
Total Notes Payable(1)	$	628,483	$	638,921	$	663,353	$	664,910
Loan Payable(1)	$	0	$	25,000	$	0	$	25,000

⁽¹⁾  Level 3: For purposes of this fair value disclosure, we based our fair value estimate for notes payable on our internal valuation that includes a representative sample of our lenders’ market interest rate quotes as of September 30, 2012 and December 31, 2011 for debt with similar risk characteristics and maturities. We based the Note Payable carried at fair value on a third party appraiser’s valuation, which used similar techniques as our internal valuation model as of September 30, 2012 and December 31, 2011.

These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. We have classified the notes payable as Level 3 as of September 30, 2012 and December 31, 2011 due to the lack of current market activity and our reliance on unobservable inputs to estimate the fair value of the mortgage note payable.