Rent Expense

6 Months Ended

Jun. 30, 2017

The Company leases the rights to parking structures at two of its properties, the air space above one property, and the land upon which 70 of its properties are located from third party land owners pursuant to separate leases. In addition, the Company leases four individual office spaces.

The Company’s leases require fixed rental payments and may also include escalation clauses and renewal options. These leases have terms of up to 98 years remaining, excluding extension options.

As of June 30, 2017, the future minimum lease obligations under non-cancelable parking, air, ground, and office leases were as follows (in thousands):



2017	$	1,134
2018	2,261
2019	2,184
2020	2,126
2021	2,139
Thereafter	98,307
Total	$	108,151

Rent expense for the parking, air, and ground leases of $0.6 million and $0.4 million for the three month periods ended June 30, 2017 and 2016, respectively, and $1.2 million and $0.8 million for the six month periods ended June 30, 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 and six month periods ended June 30, 2017 and 2016, and is reported within general and administrative expenses in the consolidated statements of operations.