Newmark has operating leases for real estate and equipment. These leases have remaining lease terms of up to 1 year to 13 years, some of which include options to extend the leases in 5 to 10 year increments for up to 10 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply the judgement to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if Newmark is reasonably certain not to exercise the termination option.

Operating lease costs were $11.7 million and $22.6 million for the three and six months ended June 30, 2019, respectively, and are included in “Operating, administrative and other” in the unaudited condensed consolidated statement of operations. Operating cash flows for the six months ended June 30, 2019 included payments of $21.8 million for operating lease liabilities. As of June 30, 2019, Newmark did not have any leases that have not yet commenced but that create significant rights and obligations. For the three and six months ended June 30, 2019, Newmark had short-term lease expense of $0.7 million and $1.3 million, respectively, and sublease income of $0.2 million and $0.4 million, respectively.

As of June 30, 2019, the weighted average discount rate was 7.49% and the remaining weighted average lease term was 9.1 years.

As of June 30, 2019, Newmark had operating lease ROU assets of $192.5 million recorded in “Other assets”, and operating lease ROU liabilities of $22.8 million recorded in “Current portion of accounts payable, accrued expenses and other liabilities” and $220.9 million recorded in “Other long-term liabilities” on its unaudited condensed consolidated balance sheets.

Rent expense, including the operating lease costs above, for the three months ended June 30, 2019 and 2018 was $12.0 million and $10.5 million, respectively, and $23.7 million and $20.7 million for the six months ended June 30, 2019 and 2018, respectively. Rent expense is reported in “Operating, administrative and other” in Newmark’s unaudited condensed consolidated statements of operations.

Newmark is obligated for minimum rental payments under various non-cancelable operating leases, principally for office space, expiring at various dates through 2032. Certain of these leases contain escalation clauses that require payment of additional rent to the extent of increases in certain operating or other costs.

As of June 30, 2019, minimum lease payments under these arrangements were as follows (in thousands):

2019	$	20,283
2020		41,815
2021		38,989
2022		36,327
2023		34,973
Thereafter		168,518
Total lease payments		340,905
Less: Interest		97,222
Present value of lease liability	$	243,683

Under ASC 840, Leases undiscounted minimum lease payments as of December 31, 2018 were as follows (in thousands):

2019	$	42,870
2020		41,497
2021		38,287
2022		35,738
2023		34,290
Thereafter		158,907
Total	$	351,589