Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Environmental Matters

Substantially all of the Company's properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”) obtained in contemplation of their acquisition by the Company or obtained by predecessor owners prior to the sale of the property or land to the Company. The Environmental Assessments did not reveal, nor is the Company aware of, any non-compliance with environmental laws, environmental liability or other environmental claim that the Company believes would likely have a material adverse effect on the Company.

Operating Ground Lease Agreements

Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of September 30, 2015, were as follows (in thousands):



Year	Amount
2015	$	250
2016	998
2017	998
2018	998
2019	998
2020 and thereafter	8,756
Total	$	12,998

Operating ground lease expense for the three and nine months ended September 30, 2015 was $224,000 and $536,000 as compared to $114,000 and $289,000 for the same periods in 2014, respectively.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. As of September 30, 2015 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company’s business or financial statements.

Other

As of September 30, 2015, the Company had letter of credit obligations of $5.4 million. The Company believes that the likelihood is remote that there will be a draw upon these letter of credit obligations.

As of September 30, 2015, the Company had 27 buildings under development. These buildings are expected to contain, when completed, a total of 6.6 million square feet of leasable space and represent an anticipated aggregate investment of $643.8 million. At September 30, 2015, development in progress totaled $338.7 million. In addition, as of September 30, 2015, the Company had invested $12.0 million in deferred leasing costs related to these development buildings. In addition, the Company had a signed commitment for a build-to-suit development not yet commenced for an anticipated investment of $44.9 million.

As of September 30, 2015, the Company was committed to $30.7 million in improvements on certain buildings and land parcels.

As of September 30, 2015, the Company was committed to $51.3 million in future land purchases.

As of September 30, 2015, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $36.2 million.

The Company maintains cash and cash equivalents at financial institutions. The combined account balances at each institution typically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes the risk is not significant.