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Future Minimum Base Rents and Lease Payments Future Minimum Rents | 3 Months Ended
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Mar. 31, 2017
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] |
Future Minimum Base Rents and Lease Payments Future Minimum Rents | Future Minimum Base Rents and Lease Payments Future Minimum Rents The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2017 to 2033. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties as of March 31, 2017:
Year | Noncancellable |  | Subject to Early Termination Options |  | Total (1)
Remaining 2017 | $ | 365,799 |  |  | $ | 380 |  |  | $ | 366,179 |
2018 | 457,963 |  |  | 23,024 |  |  | 480,987 |
2019 | 415,324 |  |  | 29,301 |  |  | 444,625 |
2020 | 340,628 |  |  | 20,368 |  |  | 360,996 |
2021 | 284,972 |  |  | 28,062 |  |  | 313,034 |
Thereafter | 884,701 |  |  | 138,486 |  |  | 1,023,187 |
Total | $ | 2,749,387 |  |  | $ | 239,621 |  |  | $ | 2,989,008 |
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(1) | Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less.
Future Minimum Lease Payments The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term noncancellable ground lease obligations:
Property |  | Expiration Date |  | Notes
11601 Wilshire |  | 10/31/2064 |  | Subject to a $50 thousand increase every 5 years. Commencing on August 1, 2026, minimum rent is adjusted to reflect changes in Consumer Price Index (“CPI”). On December 27, 2016, the Company entered into an agreement to purchase the land related to this ground lease for $50.0 million (before credits, prorations and closing costs). The transaction is expected to close in the third quarter of 2017, however there can be no guaranty that it will close as expected.
3400 Hillview |  | 10/31/2040 |  | The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in CPI from October 1989. Thereafter, minimum annual rent is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. Percentage annual rent is gross income multiplied by 24.125%. This lease has been prepaid through October 31, 2017.
9300 Wilshire |  | 8/14/2032 |  | The ground rent is the greater of minimum annual rent or percentage annual rent. Percentage annual rent is gross income multiplied by 6%.
Clocktower Square |  | 9/26/2056 |  | Minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”) less minimum annual rent.
Del Amo Office |  | 6/30/2049 |  | Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease.
Foothill Research Center |  | 6/30/2039 |  | The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is gross income multiplied by 24.125%.
Lockheed |  | 7/31/2040 |  | The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of consumer price index, or CPI, increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%.
Metro Center |  | 4/29/2054 |  | Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and rent also adjusts every 10 years to reflect the change in CPI from the preceding FMV adjustment date (since 2013).
Page Mill Center |  | 11/30/2041 |  | Minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of AGI, less minimum annual rent.
Page Mill Hill |  | 11/17/2049 |  | Minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years.
Palo Alto Square |  | 11/30/2045 |  | Minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent.
Sunset Gower Studios |  | 3/31/2060 |  | Every 7 years rent adjusts to 7.5% of FMV of the land.
Techmart Commerce Center |  | 5/31/2053 |  | Subject to a 10% increase every 5 years.
Contingent rental expense is recorded in the period in which the contingent event becomes probable. The Company recognized rent for ground leases and a corporate office lease as follows:
| Three Months Ended March 31,
| 2017 |  | 2016
Contingent rental expense | $ | 2,184 |  |  | $ | 2,337 |
Minimum rental expense | 3,196 |  |  | 3,497 |
The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2017:
Years | Ground Leases (1)(2)
Remaining 2017 | $ | 9,837 |
2018 | 14,613 |
2019 | 14,663 |
2020 | 14,663 |
2021 | 14,684 |
Thereafter | 429,386 |
Total | $ | 497,846 |
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(1) | In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments, and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of March 31, 2017.
(2) | Balance includes future minimum ground lease obligation for 11601 Wilshire. On December 27, 2016, the Company entered into an agreement to purchase the land related to the 11601 Wilshire ground lease. This transaction is expected to close in the third quarter of 2017, however, there can be no guaranty that the transaction will close.

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