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 March 31, 2017, were as follows (in thousands):



Year	Amount
2017 (remaining)	$	1,290
2018	1,604
2019	1,604
2020	1,604
2021	1,604
2022 and thereafter	34,613
Total	$	42,319

Operating ground lease expense for the three months ended March 31, 2017 was $311,000 as compared to $256,000 for the same period in 2016.

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 March 31, 2017 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 March 31, 2017, the Company had letter of credit obligations of $6.9 million.

As of March 31, 2017, the Company had 28 buildings under development. These buildings are expected to contain, when completed, a total of 6.2 million square feet of leasable space and represent an anticipated aggregate investment of $601.4 million. At March 31, 2017, development in progress totaled $321.3 million. In addition, as of March 31, 2017, the Company had invested $11.1 million in deferred leasing costs related to these development buildings.

As of March 31, 2017, the Company was committed to $12.5 million in improvements on certain buildings and land parcels.

As of March 31, 2017, the Company was committed to $17.4 million in future land acquisitions and $19.1 million in future building acquisitions. The Company expects to complete these purchases during the year ended December 31, 2017.

As of March 31, 2017, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $19.3 million.

As of March 31, 2017, the Company was committed to fund up to $4.0 million for tenant improvements and leasing commissions under a loan to the buyer of certain of the Company's properties.

Unconsolidated joint ventures in which the Company holds an interest, and in another case an unrelated third party, have engaged the Company as the developer of its development properties pursuant to development agreements. The Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the properties and to guarantee the timely lien-free completion of construction of the properties and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the properties.

The Company is currently developing three buildings for its unconsolidated joint ventures which represent an anticipated aggregate investment by the joint ventures of $966.7 million.

As of March 31, 2017, the Company was also committed to approximately $169.4 million in costs related to its agreement to develop, on a fee basis, an office building and infrastructure improvements for American Water Works in Camden, New Jersey. As of March 31, 2017, $32.9 million of these costs had been incurred.

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.