Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

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 December 31, 2015, were as follows (in thousands):



Year	Amount
2016	$	1,038
2017	1,038
2018	1,038
2019	1,038
2020	1,038
2021 though 2034	6,754
Total	$	11,944

Operating ground lease expense incurred by the Company during the years December 31, 2015, 2014 and 2013 totaled $815,000, $454,000 and $210,000, 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. The Company believes that as of December 31, 2015 there were no legal proceedings, claims or assessments expected to have a material adverse effect on the Company’s business or financial statements.

Other

As of December 31, 2015, the Company had letter of credit obligations of $5.9 million related to mortgages and development requirements. The Company believes that it is remote that there will be a draw upon these letter of credit obligations.

As of December 31, 2015, the Company had 27 buildings under development. These buildings are expected to contain a total of 6.8 million square feet of leaseable space and represent an anticipated aggregate investment of $672.0 million. At December 31, 2015, Development in Progress totaled $360.9 million. In addition, as of December 31, 2015, the Company had invested $16.1 million in deferred leasing costs related to these development buildings.

As of December 31, 2015, the Company was committed to $42.0 million in improvements on certain buildings and land parcels.

As of December 31, 2015, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $53.5 million.

As of December 31, 2015, the Company was committed to $31.9 million in future land purchases. The Company expects to complete these purchases during the year ended December 31, 2016.

As of December 31, 2015, the Company was committed to fund up to $4 million for tenant improvements and leasing commissions under a loan to the buyer of properties in the Company's Southeastern PA reportable segment.

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.