4. Deferred Leasing Intangibles

Deferred leasing intangibles included in total assets consisted of the following (in thousands):

	September 30, 2013			December 31, 2012
In-place leases	$	132,648		$	108,363
Less: Accumulated amortization	(43,728		)	(28,289		)
In-place leases, net	88,920			80,074
Above market leases	56,079			50,699
Less: Accumulated amortization	(15,666		)	(10,362		)
Above market leases, net	40,413			40,337
Tenant relationships	73,728			61,050
Less: Accumulated amortization	(16,858		)	(11,298		)
Tenant relationships, net	56,870			49,752
Leasing commissions	30,437			23,376
Less: Accumulated amortization	(8,543		)	(5,984		)
Leasing commissions, net	21,894			17,392
Total deferred leasing intangibles, net	$	208,097		$	187,555

Deferred leasing intangibles included in total liabilities consisted of the following (in thousands):

	September 30, 2013			December 31, 2012
Below market leases	$	11,091		$	9,878
Less: Accumulated amortization	(4,220		)	(3,007		)
Total deferred leasing intangibles, net	$	6,871		$	6,871

Amortization expense, inclusive of results from discontinued operations, related to in-place leases, leasing commissions and tenant relationships of deferred leasing intangibles was $10.2 million, $29.3 million, $5.8 million and $15.9 million for the three and nine months ended September 30, 2013 and September 30, 2012, respectively. Rental income, inclusive of results from discontinued operations, related to net amortization of above (below) market leases decreased by $1.5 million, $4.4 million, $1.2 million and $3.5 million for the three and nine months ended September 30, 2013 and September 30, 2012, respectively.

Amortization related to deferred leasing intangibles over the next five years is as follows (in thousands):

	Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships		Net Decrease to Rental Income Related to Above and Below Market Leases
Remainder of 2013	$	10,366	$	1,505
2014	37,284		5,734
2015	30,004		5,928
2016	25,078		5,610
2017	19,024		4,098

The Company assesses deferred leasing intangibles for impairments on a quarterly basis when certain triggering events are met. If events or changes in circumstances indicate that the carrying values of certain deferred lease intangibles may be impaired, a recovery analysis is performed based on undiscounted future cash flows expected to be generated from the tenant over the remaining lease term. If the recovery analysis indicates the carrying value of the tested lease intangibles are not recoverable from estimated future cash flows, it is written down to its estimated fair value and an impairment loss is recognized. The fair value is determined based on the contractual lease rental payments over the remaining term discounted back to the current reporting period. On June 11, 2012, the Company received notice from a tenant that the tenant was exercising an option in its lease to downsize its space from approximately 190,000 to 60,000 rentable square feet effective March 31, 2013. After determining the undiscounted future cash flows were not recoverable, the Company calculated the fair value of the lease intangibles. Using the remaining contractual lease payments for the reduced space and discounting the cash flows at a risk adjusted return for a market participant of 11.4%, it was determined that the fair value of the lease intangibles was $0.4 million, resulting in a noncash impairment loss of $0.6 million during the three and nine months ended September 30, 2012, which is reflected in the accompanying Consolidated Statements of Operations. The fair value calculation of the lease intangibles of $0.4 million was performed using Level 3 inputs, and this is a nonrecurring fair value measurement. There was no impairment of lease intangibles during the three or nine months ended September 30, 2013.