Newmark has operating leases for real estate and equipment. These leases have remaining lease terms of up to 1 year to 13 years, some of which include options to extend the leases in 5 to 10 year increments for up to 10 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply the judgment to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if Newmark is reasonably certain not to exercise the termination option.

Operating lease costs were $12.1 million and $34.7 million for the three and nine months ended September 30, 2019, respectively, and are included in “Operating, administrative and other” on the accompanying unaudited condensed consolidated statement of operations. Operating cash flows for the nine months ended September 30, 2019 included payments of $32.9 million for operating lease liabilities. As of September 30, 2019, Newmark did not have any leases that have not yet commenced but that create significant rights and obligations. For the three and nine months ended September 30, 2019, Newmark had short-term lease expense of $0.7 million and $2.0 million, respectively, and sublease income of $0.2 million and $0.6 million, respectively.

As of September 30, 2019, the weighted-average discount rate was 7.47% and the remaining weighted-average lease term was 9.0 years.

As of September 30, 2019, Newmark had operating lease ROU assets of $202.0 million recorded in “Other assets,” and operating lease ROU liabilities of $25.4 million recorded in “Current portion of accounts payable, accrued expenses and other liabilities” and $228.6 million recorded in “Other long-term liabilities” on the accompanying unaudited condensed consolidated balance sheets.

Rent expense, including the operating lease costs above, for the three months ended September 30, 2019 and 2018 was $13.0 million and $10.9 million, respectively, and $36.7 million and $31.6 million for the nine months ended September 30, 2019 and 2018, respectively. Rent expense is reported in “Operating, administrative and other” on the accompanying unaudited condensed consolidated statements of operations.

Newmark is obligated for minimum rental payments under various non-cancelable operating leases, principally for office space, expiring at various dates through 2032. Certain of these leases contain escalation clauses that require payment of additional rent to the extent of increases in certain operating or other costs.

As of September 30, 2019, minimum lease payments under these arrangements were as follows (in thousands):

2019	$	10,481
2020		43,904
2021		41,473
2022		38,705
2023		37,184
Thereafter		180,548
Total lease payments		352,295
Less: Interest		98,234
Present value of lease liability	$	254,061

Under ASC 840, Leases undiscounted minimum lease payments as of December 31, 2018 were as follows (in thousands):

2019	$	42,870
2020		41,497
2021		38,287
2022		35,738
2023		34,290
Thereafter		158,907
Total	$	351,589