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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases of Lessor Disclosure [Text Block] | 4. Leases The Company estimates the collectability of its accrued rent and accounts receivable balances related to lease revenue. When evaluating the collectability of these accrued rent and accounts receivable balances, management considers tenant creditworthiness, current economic trends and changes in tenants’ payment patterns, on a lease-by-lease basis. During the years ended December 31, 2021 and 2020, the Company wrote off approximately $1.3 million and $90.3 million, respectively, related to accrued rent, net balances and accounts receivable, net balances. The write-offs were for tenants, primarily in the retail and co-working sectors, that either terminated their leases or for which the Company determined their accrued rent and/or accounts receivable balances were no longer probable of collection. In April 2020, the FASB staff issued a question and answer document (“Lease Modification Q & A”) related to the application of lease accounting guidance for lease concessions, in accordance with ASC 842, as a result of COVID-19. The Company did not utilize the guidance provided in the Lease Modification Q & A and instead elected to continue to account for the COVID-19 lease concessions on a lease-by-lease basis in accordance with the existing lease modification accounting framework. During the year ended December 31, 2022, the Company determined it was probable of collecting substantially all of certain clients’ accrued rent and account receivable balances and, therefore, ceased recognizing revenue from such clients on a cash basis. As a result of returning these clients to accrual basis accounting, the Company reinstated approximately $1.5 million of accrued rent balances during the year ended December 31, 2022. Lessor Operating Leases The following table summarizes the components of lease revenue recognized during the years ended December 31, 2022, 2021 and 2020 included within the Company's Consolidated Statements of Operations (in thousands):
|  | Year ended December 31,
Lease Revenue |  | 2022 |  | 2021 |  | 2020
Fixed contractual payments |  | $ | 2,426,007 |  |  | $ | 2,319,362 |  |  | $ | 2,211,915 |
Variable lease payments |  | 492,361 |  |  | 433,652 |  |  | 434,346 |
|  | $ | 2,918,368 |  |  | $ | 2,753,014 |  |  | $ | 2,646,261 |
The future contractual lease payments to be received (excluding operating expense reimbursements and percentage rent) by the Company as of December 31, 2022, under non-cancelable operating leases which expire on various dates through 2049 (in thousands):
Years Ending December 31, |
2023 | $ | 2,338,610 |
2024 | 2,321,135 |
2025 | 2,279,700 |
2026 | 2,212,455 |
2027 | 2,094,014 |
Thereafter | 13,020,102 |
No single tenant represented more than 10.0% of the Company’s total lease revenue for the years ended December 31, 2022, 2021 and 2020. Sales-type Lease On July 29, 2020, the Company entered into a 99-year ground lease with a third-party hotel developer for land at its Reston Next property located in Reston, Virginia, which will support the development of a 267-room, approximately 241,000 square foot hotel property. The lease commenced on October 21, 2020 and upon commencement, the Company performed classification testing. The ground lease was subject to termination rights and as of the lease commencement date, the Company was not reasonably certain that those termination rights would not be exercised. As such, the Company accounted for the ground lease as an operating lease. On December 19, 2022, the Company amended the ground lease which included the elimination of the termination rights. As a result, this lease was reclassified as a sales-type lease. The Company recorded a sales-type lease receivable of approximately $13.0 million, which includes an unguaranteed residual asset of approximately $17,000. The sales-type lease receivable was measured as the present value of the fixed and determinable lease payments, including the unguaranteed residual value of the asset at the end of the lease, discounted at the rate implicit in the lease. In addition, the Company recorded a gain on sales-type lease of approximately $10.1 million associated with the derecognition of the asset. The Company did not recognize any interest income during the year ended December 31, 2022. The following table provides the future contractual payments to be received as of December 31, 2022 (in thousands):
| Sales-Type
2023 | $ | — |
2024 | 31 |
2025 | 124 |
2026 | 372 |
2027 | 756 |
Thereafter | 268,249 |
Total lease payments to be received | 269,532 |
Less: |
Interest portion | 256,504 |
Sales-type lease receivable | 13,028 |
Unguaranteed residual asset | 17 |
Current expected credit loss adjustment | (234) |
Sales-type lease receivable, net | $ | 12,811 |
Lessee, Operating Leases | Lessee The Company has four non-cancelable ground lease obligations, as lessee, which were classified as operating leases, with various initial term expiration dates through 2114 for the years ended December 31, 2022, 2021 and 2020. The Company recognizes ground rent expense on a straight-line basis over the term of the respective ground lease agreements. As of December 31, 2022, none of the amounts disclosed below for these ground leases contain variable payments, extension options or residual value guarantees. The Company has four finance lease obligations with various initial term expiration dates through 2094 for the years ended December 31, 2022, 2021 and 2020. The following table provides lease cost information for the Company’s operating and finance leases for the years ended December 31, 2022, 2021 and 2020 (in thousands):
|  | Year ended December 31,
Lease costs |  | 2022 |  | 2021 |  | 2020
Operating lease costs |  | $ | 12,700 |  |  | $ | 13,151 |  |  | $ | 13,948 |
Finance lease costs |  |  |  |  |  |
Amortization of right of use asset (1) |  | $ | 697 |  |  | $ | 547 |  |  | $ | 56 |
Interest on lease liabilities (2) |  | $ | 3,236 |  |  | $ | 2,471 |  |  | $ | 583 |
_______________ (1)The finance leases relate to either land, buildings or assets that remain in development. For land leases classified as finance leases because of a purchase option that the Company views as an economic incentive, the Company follows its existing policy and does not depreciate land because it is assumed to have an indefinite life. For all other finance leases, the Company would amortize the right of use asset over the shorter of the useful life of the asset or the lease term. If the finance lease relates to a property under development, the amortization of the right of use asset may be eligible for capitalization. For assets under development, depreciation may commence once the asset is placed in-service and depreciation would be recognized in accordance with the Company’s policy. (2)One, two and three of the finance leases relate to assets under development for all or a portion of the years ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively, and as such, a portion of the interest amount was capitalized. The following table provides other quantitative information for the Company’s operating and finance leases as of December 31, 2022 and December 31, 2021:
| December 31, 2022 |  | December 31, 2021
Other information |  |  |
Weighted-average remaining lease term (in years) |  |  |
Operating leases | 49 |  | 50
Finance leases | 68 |  | 69
Weighted-average discount rate |  |  |
Operating leases | 5.7 | % |  | 5.7 | %
Finance leases | 6.2 | % |  | 6.2 | %
The following table provides a maturity analysis for the Company’s lease liabilities related to its operating and finance leases as of December 31, 2022 (in thousands):
| Operating |  | Finance
2023 | $ | 22,415 |  |  | $ | 9,306 |
2024 (1) | 22,274 |  |  | 49,343 |
2025 | 10,308 |  |  | 9,971 |
2026 | 10,100 |  |  | 10,166 |
2027 | 9,885 |  |  | 10,364 |
Thereafter | 528,915 |  |  | 1,352,647 |
Total lease payments | 603,897 |  |  | 1,441,797 |
Less: |  |  |
Interest portion | 399,211 |  |  | 1,192,462 |
Present value of lease payments | $ | 204,686 |  |  | $ | 249,335 |
_______________ (1)Finance lease payments in 2024 include approximately $38.7 million related to a purchase option that the Company is reasonably certain it will exercise. The following table provides a maturity analysis for the Company’s lease liabilities related to its operating and finance leases as of December 31, 2021 (in thousands):
| Operating |  | Finance
2022 | $ | 19,623 |  |  | $ | 8,762 |
2023 | 25,333 |  |  | 10,826 |
2024 (1) | 10,085 |  |  | 48,605 |
2025 | 10,307 |  |  | 9,971 |
2026 | 10,100 |  |  | 10,166 |
Thereafter | 538,801 |  |  | 1,363,011 |
Total lease payments | 614,249 |  |  | 1,451,341 |
Less: |  |  |
Interest portion | 409,688 |  |  | 1,206,920 |
Present value of lease payments | $ | 204,561 |  |  | $ | 244,421 |
_______________ (1)Finance lease payments in 2024 include approximately $38.7 million related to a purchase option that the Company is reasonably certain it will exercise.

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- Definition The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI https://asc.fasb.org/topic&trid=2208923 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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