<SEC-DOCUMENT>0000950123-11-068260.txt : 20111103
<SEC-HEADER>0000950123-11-068260.hdr.sgml : 20111103
<ACCEPTANCE-DATETIME>20110726140819
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-11-068260
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110726

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BRANDYWINE REALTY TRUST
		CENTRAL INDEX KEY:			0000790816
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				232413352
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		555 EAST LANCASTER AVE.
		STREET 2:		SUITE 100
		CITY:			RADNOR
		STATE:			PA
		ZIP:			19087
		BUSINESS PHONE:		6103255600

	MAIL ADDRESS:	
		STREET 1:		555 EAST LANCASTER AVE.
		STREET 2:		SUITE 100
		CITY:			RADNOR
		STATE:			PA
		ZIP:			19087

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LINPRO SPECIFIED PROPERTIES
		DATE OF NAME CHANGE:	19920703

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BRANDYWINE OPERATING PARTNERSHIP, L.P.
		CENTRAL INDEX KEY:			0001060386
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				232862640
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRANDYWINE REALTY TRUST
		STREET 2:		555 E. LANCASTER AVENUE, SUITE 100
		CITY:			RADNOR
		STATE:			PA
		ZIP:			19087
		BUSINESS PHONE:		6103255600

	MAIL ADDRESS:	
		STREET 1:		C/O BRANDYWINE REALTY TRUST
		STREET 2:		555 E. LANCASTER AVENUE, SUITE 100
		CITY:			RADNOR
		STATE:			PA
		ZIP:			19087

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BRANDYWINE OPERATING PARTNERSHIP LP /PA
		DATE OF NAME CHANGE:	19980428
</SEC-HEADER>
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<P align="left" style="font-size: 10pt">July&nbsp;26, 2011


<P align="left" style="font-size: 10pt">VIA EDGAR AND FEDERAL EXPRESS


<P align="left" style="font-size: 10pt">Securities and Exchange Commission
<BR>
Division of Corporate Finance
<BR>
100 F Street N.E.
<BR>
Washington, D.C. 20549
<BR>
Attention: Cicely LaMothe
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Mark Rakip



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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RE:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brandywine Realty Trust<BR>
Form&nbsp;10-K for the year ended December&nbsp;31, 2010<BR>
Filed February&nbsp;25, 2011<BR>
File No.&nbsp;1-09106<BR><BR></TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brandywine Operating Partnership, L.P.<BR>
Form&nbsp;10-K for the year ended December&nbsp;31, 2010<BR>
Filed February&nbsp;25, 2011<BR>
File No.&nbsp;0-24407</TD>
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<P align="left" style="font-size: 10pt">Dear Ms.&nbsp;LaMothe and Mr.&nbsp;Rakip:


<P align="left" style="font-size: 10pt">We have received your July&nbsp;13, 2011 letter and appreciate your comments with respect to our response letter dated June
10, 2011. We understand that the purpose of your review of the above referenced filings is to assist us in our
compliance with applicable disclosure requirements and to enhance the overall disclosures in our filings. Listed below
are your comments and our responses.


<P align="left" style="font-size: 10pt"><U><B>Form&nbsp;10-K for the year ended December&nbsp;31, 2010</B></U>


<P align="left" style="font-size: 10pt"><U><B>Item&nbsp;2. Properties, page 16</B></U>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your response to comment 2 in our letter dated May&nbsp;26, 2011. To the extent reflecting the impact of
tenant concessions in your average rent disclosure would have a material impact on such disclosure, including with
respect to analyzing period to period trends in changes in average rents, please revise your disclosure in future
Exchange Act periodic reports to quantify the impact of concessions.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">We will revise our average rent disclosure in future Exchange Act reports to quantify the impact of
concessions to the extent including such information would have a material impact on our disclosures.

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<P align="left" style="font-size: 10pt">Securities and Exchange Commission
<BR>
July&nbsp;26, 2011
<BR>
Page 2


<P align="left" style="font-size: 10pt"><U><B>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</B></U>


<P align="left" style="font-size: 10pt"><U><B>Comparison of twelve-months ended December&nbsp;31, 2010 to the twelve months-ended December&nbsp;31, 2009, page 50</B></U>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We have considered your response to comment 8 in our letter dated May&nbsp;26, 2011. We continue to believe that
disclosure regarding your leasing activities for the period, including the volume of new and renewed leases, the
related leasing and tenant-improvement costs, the relationship between new and renewal rent rates to prior leases,
and the net absorption rate, would be useful to investors analyzing your other disclosure regarding your business,
properties and results of operations. Please provide leasing disclosure in your future periodic reports.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">We confirm that in our future filings, we will modify the disclosure to include the additional information
requested.


<P align="left" style="font-size: 10pt"><U><B>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, page 42</B></U>


<P align="left" style="font-size: 10pt"><U><B>Critical Accounting Policies and Estimates, page 44</B></U>


<P align="left" style="font-size: 10pt"><U><B>Revenue Recognition</B></U>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your response to prior comment 5 and reissue the comment in part. ASC 840-10-25-7 indicates for a
lessor, minimum lease payments comprise the payments described in paragraphs 840-10-25-5 through 25-6. It is not
clear how the conditions in the bullet points outlined in your response conform to the accounting literature
describing what comprises a minimum lease payment. Please tell us the accounting literature relied upon to record
deferred revenue and amortize such amounts to revenue over the lease term for certain improvement funded by
tenants that are considered to be landlord assets. Please also tell us what you consider to be capital
expenditures and what amounts paid by the lessee are similar to repairs and maintenance.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">We appreciate the opportunity to supplement our previous response pertaining to the accounting literature
relied upon to record deferred revenue and amortize such amounts to revenue over the lease term for certain
improvements funded by tenants that are considered to be landlord assets. As noted in our response dated June
10, 2011 the primary GAAP basis for this treatment is ASC 840-10-25-5. This guidance defines minimum lease
payments as &#147;the payments that the lessee is obligated to make or can be required to make in connection with
the leased property.&#148; We evaluate the payments by tenants for certain improvements to determine whether they
are lessor or lessee assets. If a tenant is obligated to make a payment for improvements that are deemed to
be landlord assets then such a payment falls within the criteria of ASC 840-10-25-5. It is the obligation by
the lessee to make the payment for landlord assets that causes such payments to be a form of minimum lease
payment.

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<P align="left" style="font-size: 10pt">Securities and Exchange Commission
<BR>
July&nbsp;26, 2011
<BR>
Page 3



<P align="left" style="margin-left:4%; font-size: 10pt">We also considered the SEC letter to the Center for Public Company Audit Firms dated February&nbsp;7, 2005, in
particular Item&nbsp;3 in the staff&#146;s views on lease accounting:



<P align="left" style="margin-left:4%; font-size: 10pt"><I>&#147;The staff believes that: (a)&nbsp;leasehold improvements made by a lessee that are funded by landlord incentives
or allowances under an operating lease should be recorded by the lessee as leasehold improvement assets and
amortized over a term consistent with the guidance in item 1 above; (b)&nbsp;the incentives should be recorded as
deferred rent and amortized as reductions to lease expense over the lease term in accordance with paragraph 15
of SFAS 13 and the response to Question 2 of FASB Technical Bulletin 88-1 (&#147;FTB 88-1&#148;), Issues Relating to
Accounting for Leases, and therefore, the staff believes it is inappropriate to net the deferred rent against
the leasehold improvements; and (c)&nbsp;a registrant&#146;s statement of cash flows should reflect cash received from
the lessor that is accounted for as a lease incentive within operating activities and the acquisition of
leasehold improvements for cash within investing activities. The staff recognizes that evaluating when
improvements should be recorded as assets of the lessor or assets of the lessee may require significant
judgment and factors in making that evaluation are not the subject of this letter.&#148;</I>



<P align="left" style="margin-left:4%; font-size: 10pt">Therefore, in addition to the ASC 840-10-25-5 guidance that indicates that minimum lease payments are those
that the tenant is obligated to make, we analogized to the SEC&#146;s conclusion pertaining to accounting for
leases by lessees.



<P align="left" style="margin-left:4%; font-size: 10pt">From a lessor perspective, improvements that are made and funded by the lessee under an operating lease for
which such improvements are considered lessor assets should be recorded by the lessor as an improvement and
depreciated over the appropriate estimated useful life; payments made by the lessee should be recorded as
deferred rent over the lease term and amortized as increases to lease income over the lease term.



<P align="left" style="margin-left:4%; font-size: 10pt">The conditions in the bullet points outlined in our previous response are included here for reference:


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The lease contains a requirement that the lessee fund capital expenditures</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The lessee has little or no discretion to avoid the capital expenditure</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The unavoidable capital expenditure is probable and reasonably estimable</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of the capital improvements will accrue to the lessor at the end of the lease, meaning
that the asset is not specific to just the tenant funding the improvement but can reasonably be
expected to benefit future tenants.</TD>
</TR>



</TABLE>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">






<P align="left" style="font-size: 10pt">Securities and Exchange Commission
<BR>
July&nbsp;26, 2011
<BR>
Page 4



<P align="left" style="margin-left:4%; font-size: 10pt">The reason for including these bullet points in our previous response was to outline the conditions deemed
necessary for the tenant payments made for lessor assets to be considered a part of the minimum lease
payments.



<P align="left" style="margin-left:4%; font-size: 10pt">We believe that these interpretations are appropriate as they closely follow the economics of the leasing
transaction:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where the lease does not explicitly require the lessee to make the improvement, the
improvement should be considered an asset of the lessee. When we do record deferred revenue, we first
determine that the lease obligates the tenant to pay for improvements.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In all situations not covered by (1)&nbsp;above, the uniqueness of the improvement to the lessee&#146;s
intended use needs to be considered. Improvements that are fairly generic and for which it is probable
that another tenant could utilize the improvements at the end of the lease term or if a tenant were to
vacate a space prior to expiration (e.g., such as if the lease is if discharged in bankruptcy of the
tenant) would likely be considered to be assets of the lessor.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where factor (2)&nbsp;is not determinative, other factors include:</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the improvements increase the fair value of the property from the
standpoint of the lessor, and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the useful life of the improvements relative to the lease term.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">When a lease obligates a tenant to pay for improvements that are deemed to be landlord assets, it is
reasonable that such a payment would fall under ASC 840-10-25-5 since the tenant is obligated to pay for
something that adds value to the property owned by the landlord.



<P align="left" style="margin-left:4%; font-size: 10pt">We have a limited number of leases where the tenant was obligated to pay for deemed landlord assets. These
situations typically occur more frequently during a significant redevelopment or ground up development of a
property (i.e., &#147;Revenue creating&#148; space). We consider tenant payments for capital improvements separately
from tenant reimbursement for repairs and maintenance. For example, if a tenant is obligated through the
lease agreement to pay for half of the installation of components of an HVAC system or perimeter drywall and
column enclosures, then such improvements would be fairly generic capital improvements and it is probable that
another tenant would utilize these at the end of the lease term. We evaluate the leases and the ongoing
construction invoices and billings for tenant payments of such amounts.



<P align="left" style="margin-left:4%; font-size: 10pt">Amounts paid by the lessee for repairs and maintenance are also covered in the lease agreement and such
amounts are billed in accordance with the terms of the lease typically on a monthly basis over the lease term.
Such amounts are separate and distinct from the requirement to fund capital improvements. Repairs and
maintenance costs are reimbursed through the recovery of operating expenses and such expenses generally relate
to cleaning the building exterior and interior, trash removal and recycling, removing debris and maintaining
landscaping, generally any expense which would typically be considered an expense of maintaining, operating or
repairing a building or tenant space under generally accepted accounting principles.

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">4
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<P align="left" style="font-size: 10pt">Securities and Exchange Commission
<BR>
July&nbsp;26, 2011
<BR>
Page 5


<P align="left" style="font-size: 10pt">As requested, these responses to your comments have been submitted within ten business days of your associated letter.
In closing, we acknowledge that:


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company is responsible for the adequacy and accuracy of the disclosure in the filing;</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission
from taking any action with respect to the filing; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission
or any person under the federal securities laws of the United States.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">If you have any questions with respect to our responses or require any additional information, please feel free to call
me at 610-832-4907.


<P align="left" style="font-size: 10pt">Very truly yours,


<P align="left" style="font-size: 10pt"><U>/s/ Howard M. Sipzner</U><BR>
Howard M. Sipzner<BR>
Executive Vice President and Chief Financial Officer<BR>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">5




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