Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands):



	March 31, 2017			December 31, 2016
Leasing costs	$	143,245		$	140,325
Acquired in-place lease value and deferred leasing costs	252,441			253,113
Acquired above-market leases	74,623			74,770
	470,309			468,208
Less: accumulated amortization	(203,804		)	(195,617		)
Total deferred costs, net, excluding net deferred financing costs	$	266,505		$	272,591

At March 31, 2017, $4.0 million of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.

Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $6.2 million and $5.8 million for the three months ended March 31, 2017 and 2016, respectively. Amortization expense related to acquired lease intangibles was $4.4 million and $7.7 million for the three months ended March 31, 2017 and 2016, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands):



	March 31, 2017			December 31, 2016
Acquired below-market ground leases	$	396,916		$	396,916
Less: accumulated amortization	(22,814		)	(20,856		)
Acquired below-market ground leases, net	$	374,102		$	376,060



	March 31, 2017			December 31, 2016
Acquired below-market leases	$	(134,975	)	$	(135,026	)
Less: accumulated amortization	56,729			52,726
Acquired below-market leases, net	$	(78,246	)	$	(82,300	)

Rental revenue related to the amortization of below-market leases, net of above-market leases, was $1.4 million and $4.2 million for the three months ended March 31, 2017 and 2016, respectively.

As of March 31, 2017, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate segment.