Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In the normal course of business, we are involved in legal actions arising from the ownership of our industrial properties. In our opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on our consolidated financial position, operations or liquidity.

In conjunction with the development of industrial properties, we have entered into agreements with general contractors for the construction of industrial properties. At March 31, 2017, we had eight industrial properties totaling approximately 1.8 million square feet of GLA under construction. The estimated total investment as of March 31, 2017 is approximately $135,700. Of this amount, approximately $71,700 remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated total investment.

During the year ended December 31, 2016, a 0.03 million square foot industrial property in San Diego, California was significantly destroyed by a fire (the “2016 Fire”) and accordingly, during that same period we wrote off the unamortized net book value of the building improvements amounting to approximately $2,824. We recorded a receivable from our insurance company for the amount of the write off, less our $25 deductible. In a separate event, on April 3, 2017, a fire caused significant damage to a 0.08 million square foot industrial property located in Los Angeles, California (the “2017 Fire”) (see subsequent events). During the three months ended June 30, 2017, we will write off the net unamortized building improvements for the damaged portions of the industrial property. Similar to the accounting for the 2016 Fire, we will record a receivable from our insurance company for the amount of the write off, less our $25 deductible. While we believe that the damages incurred due to the 2016 Fire and 2017 Fire are fully insured and reimbursable in accordance with our insurance policies, subject to the deductibles discussed, there can be no assurance that the cost to repair the damages will be collected.