Real Estate Properties

3 Months Ended

Mar. 31, 2012

Real Estate Properties

Real Estate Properties

Note 3. Real Estate Properties

As of March 31, 2012, we owned 71 properties representing an aggregate investment of approximately $1,495,496.  We generally lease space in our properties on a gross lease or modified gross lease basis pursuant to fixed term operating leases expiring between 2012 and 2025.  Certain of our government tenants have the right to cancel their leases before the lease term expires, although we currently expect that few will do so.  Our leases generally require us to pay all or some property operating expenses and to provide all or most property management services.  During the three months ended March 31, 2012, we executed seven leases for 38,122 rentable square feet and for a weighted average lease term of 4.4 years and made commitments for approximately $296 of leasing related costs.  We have unspent leasing related obligations of approximately $8,103 as of March 31, 2012.

In March 2012, we entered into an agreement to acquire two office properties located in Everett, WA with 111,908 rentable square feet.  These properties are leased to the State of Washington.  The contract purchase price is $20,875, excluding acquisition costs.

Also in March 2012, we entered into an agreement to acquire an office property located in Stockton, CA with 22,012 rentable square feet.  This property is leased to the U.S. Government.  The contract purchase price is $8,236, excluding acquisition costs.

In April 2012, we entered into an agreement to acquire an office property located in Albany, NY with 64,000 rentable square feet.  This property is leased to the State of New York.  The contract purchase price is $8,525, excluding acquisition costs.

Also in April 2012, we entered into an agreement to acquire an office property located in Madison, WI with 56,889 rentable square feet.  This property is leased to the State of Wisconsin.  The contract purchase price is $23,900, including the assumption of $19,249 of mortgage debt and excluding acquisition costs.

These pending acquisitions are subject to our satisfactory completion of diligence and other customary closing conditions; accordingly, we can provide no assurance that we will acquire these properties.