Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

5. Leases

As the lessee, we currently lease real estate space under noncancelable operating lease agreements for our turn-key data centers at NY1, LA1, LA4, DC1, DC2, DE1, and DE2, and our corporate headquarters located in Denver, Colorado. Our leases have remaining lease terms ranging from less than 1 year to 15 years, some of the leases include options to extend the leases for up to an additional 20 years. We do not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these renewal options at this time. The weighted-average remaining non-cancelable lease term for our operating leases was nine years at June 30, 2020, and December 31, 2019. The weighted-average discount rate was 4.9% at each date.

During the six months ended June 30, 2020, we extended the term of approximately 25,000 NRSF at our existing DC2 data center from July 2028 to July 2035. As a result of this extension, we remeasured the lease liability and adjusted the ROU asset by approximately $7.0 million.

The components of lease expense were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Lease expense:
Operating lease expense	$	6,944	$	6,397	$	13,806	$	12,793
Variable lease expense		2,051		1,336		3,588		2,628
Rent expense	$	8,995	$	7,733	$	17,394	$	15,421