REAL ESTATE

The Company owns and operates industrial and office properties. The carrying value of these operating properties by type as of December 31, 2018 and 2017 is as follows (in thousands):



	Land		Building
	and Land		and				Accumulated
	Improvements		Improvements		Total		Depreciation
2018
Industrial properties	$	1,233,655	$	4,353,225	$	5,586,880	$	926,703
Office properties	23,051		302,559		325,610		48,269

2018 Total	$	1,256,706	$	4,655,784	$	5,912,490	$	974,972

2017
Industrial properties	$	1,000,810	$	3,867,834	$	4,868,644	$	810,044
Office properties	22,743		245,329		268,072		41,580

2017 Total	$	1,023,553	$	4,113,163	$	5,136,716	$	851,624

Depreciation expense was $143.4 million, $148.9 million and $166.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Information on the operating properties the Company sold during the years ended December 31, 2018, 2017 and 2016 is as follows:

2018 Sales



Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Gross Proceeds (in thousands)
Carolinas/Richmond	1	1.5	80,000	$	7,094
Chicago/Minneapolis	—	8.3	—	2,714
Lehigh/Central PA	—	66.2	—	9,700
Philadelphia	1	3.1	207,779	130,818
Southeastern PA	32	—	2,325,039	402,708
United Kingdom	—	—	—	65,334		⁽¹⁾
Other	5	—	805,746	255,000
Total	39	79.1	3,418,564	$	873,368


(1)	The Company sold development rights in Horsham, UK.

2017 Sales



Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Gross Proceeds (in thousands)
Chicago/Minneapolis	3	—	136,110	$	8,917
Florida	—	16.4	—	13,256
Houston	1	42.2	206,808	36,145
Lehigh/Central PA	2	44.3	1,683,876	249,045
Southeastern PA	4	3.0	313,410	56,156
Other	—	7.2	—	3,739
Total	10	113.1	2,340,204	$	367,258

2016 Sales



Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Gross Proceeds (in thousands)
Chicago/Minneapolis	24	5.3	2,037,275	$	199,825
Florida	51	12.1	3,509,641	505,828
Lehigh/Central PA	1	—	120,777	11,200
Philadelphia	—	1.0	—	2,640
Southeastern PA	31	—	2,165,002	266,821
Other	18	18.0	1,631,295	224,241
Total	125	36.4	9,463,990	$	1,210,555

During the year ended December 31, 2015, the Company completed a portfolio sale consisting of 41 properties and 20 acres of land in the Southeastern PA segment. As of December 31, 2016, the Company had deferred gain recognition related to this sale in the amount of $14.3 million. During the year ended December 31, 2017, the contingency related to the portfolio sale was settled and the Company recognized the deferred gain in the accompanying consolidated statements of comprehensive income.

Information on the operating properties and land parcels the Company acquired during the years ended December 31, 2018, 2017 and 2016 is as follows:

2018 Acquisitions



Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Purchase Price
				(in thousands)
Florida	—	30.8	—	$	15,478
Lehigh/Central PA	—	170.2	—	34,092
Southern California	5	36.0	1,450,041	291,916
United Kingdom	7	8.7	1,116,421	149,582
Other	4	29.2	1,484,612	141,502
Total	16	274.9	4,051,074	$	632,570

2017 Acquisitions



Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Purchase Price
				(in thousands)
Carolinas/Richmond	—	10.7	—	$	1,242
Lehigh/Central PA	—	94.6	—	17,798
Southern California	3	—	1,163,233	176,310
United Kingdom	—	34.6	—	12,550
Other	5	113.6	698,646	88,498
Total	8	253.5	1,861,879	$	296,398

2016 Acquisitions



Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Purchase Price
				(in thousands)
Carolinas/Richmond	—	12.7	—	$	2,251
Chicago/Minneapolis	1	5.6	73,160	11,064
Lehigh/Central PA	—	76.0	—	15,395
Philadelphia	—	6.2	—	13,943
Southeastern PA	—	8.3	—	3,344
Southern California	—	8.1	—	4,041
Other	—	99.5	—	10,854
Total	1	216.4	73,160	$	60,892