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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies

15. 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.

Seven properties have leases granting the tenants options to purchase the property. Such options are exercisable at various times at appraised fair market value or at a fixed purchase price in excess of our depreciated cost of the asset. We have no notice of any exercise of any tenant purchase option.

At December 31, 2012, we had an outstanding letter of credit and performance bonds in the aggregate amount of $9,546.

At December 31, 2012, we have committed to the development of three industrial buildings totaling approximately 1.5 million square feet of GLA. The estimated total construction costs as of December 31, 2012, are approximately $107,723 (unaudited). Of this amount, approximately $45,793 (unaudited) remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated completion cost stated above.

Ground and Operating Lease Agreements

For the years ended December 31, 2012, 2011 and 2010, we recognized $1,565, $1,955 and $3,047, respectively, in operating and ground lease expense.

Future minimum rental payments under the terms of all non-cancelable ground and operating leases under which we are the lessee as of December 31, 2012 are as follows:

 

2013

    $ 2,090   

2014

      1,790   

2015

      1,673   

2016

      1,702   

2017

      1,732   

Thereafter

      26,938   
  

 

 

  

Total*

    $ 35,925   
  

 

 

  

 

* Minimum rental payments have not been reduced by minimum sublease rentals of $8,339 due in the future under non-cancelable subleases.