Lease Commitments

12 Months Ended

Dec. 31, 2011

Lease Commitments [Abstract]

Lease Commitments

9. Lease Commitments

The Company leases various corporate offices, parking spaces, and office equipment under noncancelable operating leases. These leases have initial terms of one to ten years. Several of the leases have termination clauses whereby the term may be reduced by two to seven years upon prior notice and payment of a termination fee by the Company. Total rental expense charged to operations was $5.3 million, $5.6 million, and $6.0 million for the years ended December 31, 2011, 2010 and 2009, respectively and is recorded within occupancy expense in the consolidated statements of income.

Future minimum rental payments for the next five years under operating leases with noncancelable terms in excess of one year and without regard to early termination provisions are as follows (in thousands):

2012	$	5,619
2013		5,357
2014		4,201
2015		3,405
2016		2,688
Thereafter		6,763
	$	28,033

From time to time the Company subleases certain office space to subtenants, some of which may be canceled at any time. The rental income received from these subleases is included as a reduction of occupancy expenses in the accompanying consolidated statements of income.

The Company also leases certain office equipment under capital leases that expire at various dates through 2016. See Note 4 and Note 7 for further description of the assets and related obligations recorded under these capital leases at December 31, 2011 and 2010, respectively.

HFF Holdings is not an obligor under, nor does it guarantee, any of the Company’s leases.