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Leases

9 Months Ended

Sep. 30, 2021

14.

Leases

We lease office, retail and storage space to tenants, primarily under non-cancellable operating leases, which generally have terms ranging from five to fifteen years. Most of our leases provide tenants with extension options at either fixed or market rates and few of our leases provide tenants with options to early terminate, but such options generally impose an economic penalty on the tenant upon exercising. Rental revenue is recognized in accordance with ASC Topic 842, Leases, and includes (i) fixed payments of cash rents, which represents revenue each tenant pays in accordance with the terms of its respective lease and that is recognized on a straight-line basis over the non-cancellable term of the lease, and includes the effects of rent steps and rent abatements under the leases, (ii) variable payments of tenant reimbursements, which are recoveries of all or a portion of the operating expenses and real estate taxes of the property and is recognized in the same period as the expenses are incurred, (iii) amortization of acquired above and below-market leases, net and (iv) lease termination income.

The following table sets forth the details of our rental revenue.

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
(Amounts in thousands)	2021		2020			2021			2020
Rental revenue:
Fixed	$	158,400	$	153,065	⁽¹⁾	$	478,670		$	467,609	⁽¹⁾
Variable		12,451		12,355			39,955	⁽²⁾		37,225
Total rental revenue	$	170,851	$	165,420		$	518,625		$	504,834

⁽¹⁾

Includes (i) $14,863 and $26,172 of non-cash write-offs, primarily for straight-line rent receivables in the three and nine months ended September 30, 2020, respectively, and (ii) $2,051 of reserves for uncollectible accounts receivable in the nine months ended September 30, 2020.

⁽²⁾	Includes $5,051 of income in connection with a tenant’s lease termination at 300 Mission Street.

The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of September 30, 2021, for the three-month period from October 1, 2021 through December 31, 2021, and each of the five succeeding years and thereafter commencing January 1, 2022.

(Amounts in thousands)
2021	$	161,526
2022		634,446
2023		620,383
2024		596,696
2025		541,026
2026		445,087
Thereafter		2,168,408
Total	$	5,167,572