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Real Estate
 12 Months Ended
Dec. 31, 2023
Real Estate [Abstract]  
Real Estate Real Estate
The following table summarizes the Company’s gross investment in real estate as of:
December 31, 2023December 31, 2022
Land$231,175 $327,408 
Building and improvements1,968,314 2,631,965 
Tenant origination and absorption cost402,251 535,889 
Construction in progress8,371 1,994 
Total real estate$2,610,111 $3,497,256 
Depreciation expense for buildings and improvements for the years ended December 31, 2023, 2022, and 2021 was $72.3 million, $113.2 million, and $125.4 million, respectively. Amortization expense for intangibles, including but not limited to, tenant origination and absorption costs for the years ended December 31, 2023, 2022, and 2021 was $39.9 million, $77.6 million, and $84.2 million respectively.
Acquisitions of Real Estate
The Company had no acquisitions of real estate during the years ended December 31, 2023 and December 31, 2022, respectively.
Dispositions of Real Estate
For the year ended December 31, 2023, the Company sold eleven properties for gross disposition proceeds of approximately $335.9 million. The Company recognized a net gain of approximately $29.2 million, detailed in the table below:
Sale DateSegmentLocationGross ProceedsGain (Loss)
Three Months Ended March 31, 2023
January 6, 2023IndustrialIrvine, CA$40,000 $18,690 
February 16, 2023IndustrialClinton, SC19,300 7,109 
March 2, 2023OfficeHerndon, VA110,300 4,811 
Total169,600 30,610 
April 13, 2023Listing Date
Three Months Ended June 30, 2023
May 9, 2023OtherLone Tree, CO5,600 (275)
May 15, 2023OfficeHouston, TX62,300 (5,024)
June 8, 2023OtherGreenwood Village, CO5,000 (5,228)
June 30, 2023OfficeAndover, MA23,700 122 
June 30, 2023OfficeAndover, MA34,200 704 
Total 130,800 (9,701)
Three Months Ended September 30, 2023
August 16, 2023OtherRancho Cordova, CA8,300 3,748 
Total8,300 3,748 
Three Months Ended December 31, 2023
December 15, 2023OtherHouston, TX5,825 2,014 
December 20, 2023OfficeTyler, TX21,400 12,493 
Total27,225 4,507 
Total for the Year Ended December 31, 2023$335,925 $29,164 
(1)    The gross proceeds amount of $21.4 million is inclusive of a lease termination fee received in conjunction with the sale.
Real Estate Impairments
During the year ended December 31, 2023, in connection with the preparation and review of the financial statements, the Company recorded a real estate impairment provision of approximately $409.5 million on seventeen properties, consisting of nine Office segment properties for $208.3 million and eight Other segment properties for $201.2 million. The impaired properties are located in the Southwest, Northeast, Midwest, West, and Southeast regions of the United States. This impairment resulted from changes during the year related to anticipated hold periods, estimated selling prices and potential vacancies that impacted the recoverability of these assets. In determining the fair value of the properties, the Company considered Level 3 inputs. See Note 8, Fair Value Measurements, for details.
Real Estate and Acquired Lease Intangibles
The following table summarizes the Company’s allocation of acquired and contributed real estate asset value to in-place lease valuation, tenant origination and absorption cost, and other intangibles, net of the write-off of intangibles for the years ended December 31, 2023 and 2022:
December 31,
20232022
In-place lease valuation (above market) $22,759 $28,619 
In-place lease valuation (above market) - accumulated amortization(16,616)(19,799)
In-place lease valuation (above market), net6,143 8,820 
Intangibles - other32,028 32,028 
Intangibles - other - accumulated amortization(8,481)(6,987)
Intangibles - other, net23,547 25,041 
Intangible assets, net$29,690 $33,861 
In-place lease valuation (below market)$(42,534)$(48,686)
Land leasehold interest (above market)(3,072)(3,072)
In-place lease valuation & land leasehold interest - accumulated amortization29,770 31,358 
Intangibles - other (above market)(187)(258)
Intangible liabilities, net$(16,023)$(20,658)
Tenant origination and absorption cost $402,251 $535,889 
Tenant origination and absorption cost - accumulated amortization(221,786)(282,383)
Tenant origination and absorption cost, net$180,465 $253,506 
The intangible assets are amortized over the remaining lease term of each property, which on a weighted-average basis, was approximately 6.5 years and 7.1 years as of December 31, 2023 and 2022, respectively. The amortization of the intangible assets and other leasing costs for the respective periods is as follows:
 Amortization (income) expense for the Year Ended December 31,
 202320222021
Above and below market leases, net$(1,239)$(2,205)$(1,323)
Tenant origination and absorption cost$38,305 $73,172 $78,389 
Ground leasehold amortization (below market)$(388)$(372)$(349)
Other leasing costs amortization$2,013 $4,754 $6,209 
The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, net, tenant origination and absorption costs, ground leasehold interest, and other leasing costs as of December 31, 2023 for the next five years:
YearIn-place lease valuation, netTenant origination and absorption costsGround leasehold interestOther leasing costs
2024$(1,169)$29,107 $(318)$2,230 
2025$(1,165)$26,012 $(317)$2,491 
2026$(1,073)$24,872 $(317)$2,442 
2027$(829)$23,199 $(317)$2,261 
2028$(644)$19,657 $(318)$2,126 
Real Estate Held for Sale
As of December 31, 2023, two properties met the criteria for classification as held for sale as follows: (i) in our Other segment, one property located in Jefferson City, Missouri, where the tenant exercised its fixed-price purchase option to acquire the property; and (ii) in our Office segment, one property located in Johnston, Iowa, where an affiliate of the existing tenant agreed to purchase the asset (note that this sale closed subsequent to year-end, see Note 16, Subsequent Events, for further details).
The following summary presents the major components of assets and liabilities related to the real estate properties held for sale as of December 31, 2023:
ASSETSAs of December 31, 2023
Land$10,091 
Building and improvements42,678 
Tenant origination and absorption cost11,519 
Total real estate64,288 
Less: accumulated depreciation(14,636)
Total real estate, net49,652 
Intangible assets, net144 
Deferred rent407 
Other assets, net8 
Total real estate and other assets held for sale$50,211 
LIABILITIES
Intangible liabilities, net$21 
Accrued expenses and other liabilities518 
Liabilities of real estate assets held for sale$539