Rent Expense

9 Months Ended

Sep. 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 75 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 September 30, 2017, the future minimum lease obligations under non-cancelable parking, air, ground, and office leases were as follows (in thousands):



2017	$	580
2018	2,401
2019	2,328
2020	2,270
2021	2,283
Thereafter	106,531
Total	$	116,393

Rent expense for the parking, air, and ground leases of $0.6 million and $0.5 million for the three month periods ended September 30, 2017 and 2016, respectively, and $1.8 million and $1.3 million for the nine month periods ended September 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 nine month periods ended September 30, 2017 and 2016, and is reported within general and administrative expenses in the consolidated statements of operations.