Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Environmental Matters

Substantially all of the Properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (together, the “Environmental Assessments”) obtained in contemplation of their acquisition by 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, 2013, were as follows (in thousands):

Year	Amount
2014	$	203
2015	203
2016	203
2017	203
2018	203
2019 though 2034	2,981
Total	$	3,996

Operating ground lease expense incurred by the Company during the years December 31, 2013, 2012 and 2011 totaled $210,000, $162,000 and $219,000, 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, 2013 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, 2013, the Company had letter of credit obligations of $4.3 million related to 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, 2013, the Company had 16 buildings under development. These buildings are expected to contain a total of 5.0 million square feet of leaseable space and represent an anticipated aggregate investment of $380.8 million. At December 31, 2013, Development in Progress totaled $209.2 million. In addition, as of December 31, 2013, the Company had invested $11.1 million in deferred leasing costs related to these development buildings. Also, the Company had a signed commitment for an inventory development not yet commenced for an anticipated investment of $13.1 million.

As of December 31, 2013, the Company was committed to $16.2 million in improvements on certain land parcels.

As of December 31, 2013, the Company was obligated to pay tenants for allowances for tenant improvements not yet completed for a maximum of $38.1 million.

As of December 31, 2013, the Company was committed to $52.8 million in future land purchases.

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.