Rent Expense

3 Months Ended

Mar. 31, 2017

The Company leases the rights to parking structures at three of its properties, the air space above one property, and the land upon which 59 of its properties are located from third party land owners pursuant to separate leases. In addition, the Company leases four individual office spaces. The leases require fixed rental payments and may also include escalation clauses and renewal options. These leases have terms of up to 99 years remaining, excluding extension options.

As of March 31, 2017, the future minimum lease obligations under non-cancelable parking, air, ground, and office leases were as follows (in thousands):



2017	$	1,877
2018	2,548
2019	2,513
2020	2,499
2021	2,556
Thereafter	68,381
Total	$	80,374

Rent expense for the parking, air, and ground leases of $0.6 million and $0.4 million for the three month periods ended March 31, 2017 and 2016, respectively, are reported in operating expenses in the consolidated statements of income. Rent expense for office leases was insignificant for the three month periods ended March 31, 2017 and 2016, and is reported within general and administrative expenses in the consolidated statements of operations.