Tier Reit (TIER) 10-Q 9 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	TIER REIT INC
Entity Central Index Key	1,176,373
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		47,742,671
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real estate
Land	$ 143,581	$ 179,989
Land held for development	45,059	45,059
Buildings and improvements, net	1,048,194	1,348,200
Real estate under development	11,657	0
Total real estate	1,248,491	1,573,248
Cash and cash equivalents	51,466	12,248
Restricted cash	8,586	10,712
Accounts receivable, net	67,100	76,228
Prepaid expenses and other assets	5,540	6,712
Investments in unconsolidated entities	76,954	88,998
Deferred financing fees, net	2,698	3,111
Lease intangibles, net	62,936	83,548
Other intangible assets, net	9,888	10,086
Assets associated with real estate held for sale	37,026	0
Total assets	1,570,685	1,864,891
Liabilities
Notes payable, net	837,920	1,071,571
Accounts payable and accrued liabilities	65,924	71,597
Payables to related parties	0	292
Acquired below-market leases, net	7,856	11,934
Distributions payable	8,602	8,596
Other liabilities	30,005	23,082
Obligations associated with real estate held for sale	1,394	0
Total liabilities	951,701	1,187,072
Commitments and contingencies
Series A Convertible Preferred Stock	0	2,700
Equity
Preferred stock, $.0001 par value per share; 17,500,000 and 17,490,000 shares authorized at September 30, 2016, and December 31, 2015, respectively, none outstanding	0	0
Convertible stock, $.0001 par value per share; 1,000 shares authorized, none outstanding	0	0
Common stock, $.0001 par value per share; 382,499,000 shares authorized, 47,412,705 and 47,362,372 shares issued and outstanding at September 30, 2016, and December 31, 2015, respectively	5	5
Additional paid-in capital	2,605,569	2,600,193
Cumulative distributions and net loss attributable to common stockholders	(1,971,588)	(1,922,721)
Accumulated other comprehensive loss	(16,662)	(3,860)
Stockholders’ equity	617,324	673,617
Noncontrolling interests	1,660	1,502
Total equity	618,984	675,119
Total liabilities and equity	$ 1,570,685	$ 1,864,891

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (shares)	17,500,000	17,490,000
Preferred stock, shares outstanding (shares)	0	0
Convertible stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible stock, shares authorized (shares)	1,000	1,000
Convertible stock, shares outstanding (shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (shares)	382,499,000	382,499,000
Common stock, shares issued (shares)	47,412,705	47,362,372
Common stock, shares outstanding (shares)	47,412,705	47,362,372

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Rental revenue	$ 55,998	$ 69,423	$ 188,743	$ 215,280
Expenses
Property operating expenses	16,315	21,290	56,605	67,346
Interest expense	9,005	12,765	34,692	44,747
Real estate taxes	8,350	9,670	28,843	31,512
Property management fees	210	342	720	4,779
Asset impairment losses	4,151	0	8,977	132
General and administrative	5,529	10,123	17,853	36,007
Depreciation and amortization	25,133	31,446	87,974	92,549
Total expenses	68,693	85,636	235,664	277,072
Interest and other income	248	267	866	553
Loss on early extinguishment of debt	0	(30)	0	(21,478)
Loss from continuing operations before income taxes, equity in operations of investments, and gain (loss) on sale of assets	(12,447)	(15,976)	(46,055)	(82,717)
Provision for income taxes	(4)	(36)	(467)	(1,298)
Equity in operations of investments	646	(159)	1,884	153
Loss from continuing operations before gain (loss) on sale of assets	(11,805)	(16,171)	(44,638)	(83,862)
Discontinued operations
Income from discontinued operations	0	21	0	1,390
Gain on sale of discontinued operations	0	403	0	15,086
Discontinued operations	0	424	0	16,476
Gain (loss) on sale of assets	10,777	(85)	21,526	44,479
Net loss	(1,028)	(15,832)	(23,112)	(22,907)
Net loss attributable to noncontrolling interests
Noncontrolling interests in continuing operations	3	58	28	118
Noncontrolling interests in discontinued operations	0	(1)	0	(29)
Dilution of Series A Convertible Preferred Stock	0	1,926	0	1,926
Net loss attributable to common stockholders	$ (1,025)	$ (13,849)	$ (23,084)	$ (20,892)
Basic and diluted weighted average common shares outstanding (in shares)	47,412,705	48,842,711	47,402,724	49,538,652
Basic and diluted earnings (loss) per common share:
Continuing operations (in dollars per share)	$ (0.02)	$ (0.29)	$ (0.49)	$ (0.75)
Discontinued operations (in dollars per share)	0	0.01	0	0.33
Basic and diluted loss per common share (in dollars per share)	(0.02)	(0.28)	(0.49)	(0.42)
Distributions declared per common share (in dollars per share)	$ 0.18	$ 0.18	$ 0.54	$ 0.36
Net income (loss) attributable to common stockholders:
Continuing operations	$ (1,025)	$ (14,272)	$ (23,084)	$ (37,339)
Discontinued operations	0	423	0	16,447
Net loss attributable to common stockholders	(1,025)	(13,849)	(23,084)	(20,892)
Comprehensive income (loss):
Net loss	(1,028)	(15,832)	(23,112)	(22,907)
Other comprehensive income (loss): unrealized income (loss) on interest rate derivatives	2,602	(10,966)	(12,810)	(9,376)
Comprehensive income (loss)	1,574	(26,798)	(35,922)	(32,283)
Comprehensive loss attributable to noncontrolling interests	1	76	36	105
Comprehensive income (loss) attributable to common stockholders	$ 1,575	$ (26,722)	$ (35,886)	$ (32,178)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Changes in Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Cumulative Distributions and Net Loss Attributable to Common Stockholders	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning balance at Dec. 31, 2014	$ 783,534	$ 5	$ 2,645,927	$ (1,862,555)	$ (788)	$ 945
Beginning balance (in shares) at Dec. 31, 2014		49,877
Increase (Decrease) in Equity
Net loss	(22,907)			(22,818)		(89)
Unrealized loss on interest rate derivatives	(9,376)				(9,360)	(16)
Share based compensation, net	1,332		1,321			11
Share-based compensation, net (in shares)		28
Redemption of common stock	(50,841)		(50,841)
Redemption of common stock (in shares)		(2,663)
Contributions by noncontrolling interests	1,325					1,325
Distributions declared, common stock ($0.36 and $0.54 per share for the nine months ended September 2016 and 2015, respectively)	(17,550)			(17,550)
Distributions declared, Series A Convertible Preferred Stock ($0.36 per share for the nine months ended September 2015)	(4)			(4)
Distributions declared, noncontrolling interests	(30)					(30)
Dilution of Series A Convertible Preferred Stock	1,926
Ending balance at Sep. 30, 2015	687,409	$ 5	2,598,333	(1,902,927)	(10,148)	2,146
Ending balance (in shares) at Sep. 30, 2015		47,242
Beginning balance at Dec. 31, 2014	783,534	$ 5	2,645,927	(1,862,555)	(788)	945
Beginning balance (in shares) at Dec. 31, 2014		49,877
Increase (Decrease) in Equity
Distributions declared, common stock ($0.36 and $0.54 per share for the nine months ended September 2016 and 2015, respectively)	(26,126)
Distributions declared, Series A Convertible Preferred Stock ($0.36 per share for the nine months ended September 2015)	(6)
Distributions declared, noncontrolling interests	(48)
Ending balance at Dec. 31, 2015	675,119	$ 5	2,600,193	(1,922,721)	(3,860)	1,502
Ending balance (in shares) at Dec. 31, 2015		47,362
Beginning balance at Sep. 30, 2015	687,409	$ 5	2,598,333	(1,902,927)	(10,148)	2,146
Beginning balance (in shares) at Sep. 30, 2015		47,242
Increase (Decrease) in Equity
Distributions declared, common stock ($0.36 and $0.54 per share for the nine months ended September 2016 and 2015, respectively)	(8,576)
Distributions declared, Series A Convertible Preferred Stock ($0.36 per share for the nine months ended September 2015)	(2)
Distributions declared, noncontrolling interests	(18)
Ending balance at Dec. 31, 2015	675,119	$ 5	2,600,193	(1,922,721)	(3,860)	1,502
Ending balance (in shares) at Dec. 31, 2015		47,362
Increase (Decrease) in Equity
Net loss	(23,112)			(23,084)		(28)
Unrealized loss on interest rate derivatives	(12,810)				(12,802)	(8)
Share based compensation, net	2,865		2,676			189
Share-based compensation, net (in shares)		51
Contributions by noncontrolling interests	25					25
Distributions declared, common stock ($0.36 and $0.54 per share for the nine months ended September 2016 and 2015, respectively)	(25,783)			(25,783)
Distributions declared, Series A Convertible Preferred Stock ($0.36 per share for the nine months ended September 2015)	0
Distributions declared, noncontrolling interests	(20)					(20)
Cancellation of Series A Convertible Preferred Stock	2,700		2,700
Dilution of Series A Convertible Preferred Stock	0
Ending balance at Sep. 30, 2016	$ 618,984	$ 5	$ 2,605,569	$ (1,971,588)	$ (16,662)	$ 1,660
Ending balance (in shares) at Sep. 30, 2016		47,413

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Equity (unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Stockholders' Equity [Abstract]
Distributions declared per common share (in dollars per share)	$ 0.54	$ 0.36
Distributions declared per preferred share (in dollars per share)	$ 0	$ 0.36

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net loss	$ (23,112)	$ (22,907)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Asset impairment losses	8,977	132
Gain on sale of assets	(21,526)	(44,479)
Gain on sale of discontinued operations	0	(15,086)
Loss on early extinguishment of debt	0	598
Loss on derivatives	407	0
Amortization of restricted shares and units	3,118	1,604
Depreciation and amortization	87,974	92,549
Amortization of lease intangibles	(1,806)	(963)
Amortization of above- and below-market rent	(3,399)	(4,586)
Amortization of deferred financing and mark-to-market costs	2,308	2,644
Equity in operations of investments	(1,884)	(153)
Ownership portion of management and construction management fees from unconsolidated companies	412	350
Distributions from investments	360	569
Change in accounts receivable	(4,188)	(6,647)
Change in prepaid expenses and other assets	248	1,275
Change in lease commissions	(8,337)	(14,571)
Change in other lease intangibles	(694)	(470)
Change in other intangible assets	(100)	0
Change in accounts payable and accrued liabilities	(1,309)	(9,679)
Change in other liabilities	(1,415)	2,113
Change in payables to related parties	0	(1,518)
Cash provided by (used in) operating activities	36,034	(19,225)
Cash flows from investing activities
Escrow deposits	0	(15,000)
Return of investments	16,925	631
Purchase of ground lease	0	(7,200)
Purchases of real estate	0	(163,184)
Investments in unconsolidated entities	(3,771)	(34,773)
Capital expenditures for real estate	(34,823)	(55,339)
Capital expenditures for real estate under development	(5,766)	(2,555)
Proceeds from sale of discontinued operations	0	59,706
Proceeds from sale of assets	290,012	414,628
Change in restricted cash	2,176	18,709
Cash provided by investing activities	264,753	215,623
Cash flows from financing activities
Financing costs	(876)	(5,678)
Proceeds from notes payable	107,000	715,905
Payments on notes payable	(341,668)	(870,471)
Payments on capital lease obligations	0	(12)
Redemptions of common stock	0	(50,842)
Transfer of common stock	(253)	(270)
Distributions paid to Series A Convertible Preferred and common stockholders	(25,766)	(9,013)
Distributions paid to noncontrolling interests	(31)	(15)
Contributions from noncontrolling interests	25	325
Cash used in financing activities	(261,569)	(220,071)
Net change in cash and cash equivalents	39,218	(23,673)
Cash and cash equivalents at beginning of period	12,248	31,442
Cash and cash equivalents at end of period	$ 51,466	$ 7,769

Business

Business	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Business Organization TIER REIT, Inc. is a self-managed, Dallas-based real estate investment trust focused on delivering outsized stockholder return through stock price appreciation and dividend growth while offering unparalleled tenant service. As used herein, “TIER REIT,” the “Company,” “we,” “us,” or “our” refers to TIER REIT, Inc. and its subsidiaries unless the context otherwise requires. TIER REIT’s investment strategy is to acquire, develop, and operate a portfolio of best-in-class office properties in select U.S. markets that consistently lead the nation in both population and office-using employment growth. Within these markets, we target TIER 1 submarkets, which are primarily urban and amenity-rich locations. TIER REIT was incorporated in June 2002 as a Maryland corporation and has elected to be treated, and currently qualifies, as a real estate investment trust, or REIT, for federal income tax purposes. As of September 30, 2016 , we owned interests in 30 operating office properties, one non-operating property, and one development property, located in 13 markets throughout the United States. Substantially all of our business is conducted through Tier Operating Partnership LP (“Tier OP”), a Texas limited partnership. Our wholly-owned subsidiary, Tier GP, Inc., a Delaware corporation, is the sole general partner of Tier OP. Our direct and indirect wholly-owned subsidiaries, Tier Business Trust, a Maryland business trust, and Tier Partners, LLC, a Delaware limited liability company, are limited partners that together with Tier GP, Inc. own all of Tier OP.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Interim Unaudited Financial Information The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the Securities and Exchange Commission (“SEC”) on February 16, 2016. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this report on Form 10-Q pursuant to the rules and regulations of the SEC. The results for the interim periods shown in this report are not necessarily indicative of future financial results. The accompanying condensed consolidated balance sheets as of September 30, 2016 , and December 31, 2015 , and condensed consolidated statements of operations and comprehensive income (loss), changes in equity, and cash flows for the periods ended September 30, 2016 and 2015 , have not been audited by our independent registered public accounting firm. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary to present fairly our financial position as of September 30, 2016 , and December 31, 2015 , and our results of operations and our cash flows for the periods ended September 30, 2016 and 2015 . These adjustments are of a normal recurring nature. We have evaluated subsequent events for recognition or disclosure in our condensed consolidated financial statements. Reclassification Certain amounts previously reflected in the prior year condensed consolidated balance sheet and condensed consolidated statement of cash flows have been reclassified to conform to our 2016 presentation. The December 31, 2015 , condensed consolidated balance sheet reflects the single line “accounts payable and accrued liabilities” that was previously presented on two lines “accounts payable” (approximately $0.8 million ) and “accrued liabilities” (approximately $70.8 million ). In addition, the September 30, 2015 , condensed consolidated statement of cash flows reflects within the operating section the single line “change in accounts payable and accrued liabilities” that was previously presented on two lines “change in accounts payable” (approximately $0.9 million ) and “change in accrued liabilities” (approximately $8.8 million ). These reclassifications had no effect on the previously reported total liabilities or cash used in operating activities. Summary of Significant Accounting Policies Described below are certain of our significant accounting policies. The disclosures regarding several of the policies have been condensed or omitted in accordance with interim reporting regulations specified by Form 10-Q. Please see our consolidated financial statements and notes thereto included in Annual Report on Form 10-K for a complete listing of all of our significant accounting policies. Principles of Consolidation and Basis of Presentation Our condensed consolidated financial statements include our accounts, the accounts of variable interest entities (“VIEs”), if any, in which we are the primary beneficiary, and the accounts of other subsidiaries over which we have control. VIEs, as defined by GAAP, are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. Interests in entities acquired are evaluated based on applicable GAAP guidance which requires the consolidation of VIEs in which we are deemed to be the primary beneficiary. We adopted new accounting guidance on January 1, 2016, and certain of our entities were determined to be VIEs under the new guidance. While this determination under the new guidance did not impact the conclusions regarding consolidation of these entities, we have included additional disclosures relating to these entities. The determination of the primary beneficiary requires management to make significant estimates and judgments about our rights, obligations, and economic interests in such entities as well as the same of the other owners. For entities in which we have less than a controlling financial interest or entities with respect to which we are not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. If the interest is in an entity that is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control and/or substantive participating rights under the respective ownership agreement. All inter-company transactions, balances, and profits have been eliminated in consolidation. Real Estate As of September 30, 2016 , and December 31, 2015 , the cost basis and accumulated depreciation and amortization related to our consolidated depreciable real estate properties and related lease intangibles were as follows (in thousands): Lease Intangibles Assets Liabilities Acquired Above-Market Leases Acquired Below-Market Leases Buildings and Improvements Other Lease Intangibles as of September 30, 2016 Cost $ 1,564,994 $ 129,330 $ 5,005 $ (42,701 ) Less: accumulated depreciation and amortization (516,800 ) (67,411 ) (3,988 ) 34,845 Net $ 1,048,194 $ 61,919 $ 1,017 $ (7,856 ) Lease Intangibles Assets Liabilities Acquired Above-Market Leases Acquired Below-Market Leases Buildings and Improvements Other Lease Intangibles as of December 31, 2015 Cost $ 1,914,664 $ 164,636 $ 5,383 $ (52,744 ) Less: accumulated depreciation and amortization (566,464 ) (82,476 ) (3,995 ) 40,810 Net $ 1,348,200 $ 82,160 $ 1,388 $ (11,934 ) We amortize the value of in-place leases, in-place tenant improvements, and in-place leasing commissions to expense over the initial term of the respective leases. The tenant relationship values are amortized to expense over the tenants’ respective initial lease terms and any anticipated renewal periods, but in no event does the amortization period for intangible assets or liabilities exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the acquired lease intangibles related to that tenant would be charged to expense. The estimated remaining average useful lives for acquired lease intangibles range from an ending date of October 2016 to an ending date of March 2024. Anticipated amortization associated with acquired lease intangibles for each of the following five years is as follows (in thousands): October 2016 - December 2016 $ 751 2017 $ 1,813 2018 $ 995 2019 $ 1,002 2020 $ 1,092 Impairment of Real Estate-Related Assets For our consolidated real estate assets, we monitor events and changes in circumstances indicating that the carrying amounts of the real estate assets may not be recoverable. When such events or changes in circumstances are present, we assess potential impairment by comparing estimated future undiscounted cash flows expected to be generated over the life of the asset including its eventual disposition, to the carrying amount of the asset. In the event that the carrying amount exceeds the estimated future undiscounted cash flows and also exceeds the fair value of the asset, we recognize an impairment loss to adjust the carrying amount of the asset to its estimated fair value. Our process to estimate the fair value of an asset involves using bona fide purchase offers or the expected sales price of an executed sales agreement, which would be considered Level 1 or Level 2 assumptions within the fair value hierarchy. To the extent that this type of third-party information is unavailable, we estimate projected cash flows and a risk-adjusted rate of return that we believe would be used by a third party market participant in estimating the fair value of an asset. This is considered a Level 3 assumption within the fair value hierarchy. These projected cash flows are prepared internally by the Company’s asset management professionals and are updated quarterly to reflect in-place and projected leasing activity, market revenue and expense growth rates, market capitalization rates, discount rates, and changes in economic and other relevant conditions. The Company’s Chief Financial Officer, Chief Accounting Officer, and Managing Director - Asset Management review these projected cash flows to assure that the valuation is prepared using reasonable inputs and assumptions which are consistent with market data or with assumptions that would be used by a third party market participant and assume the highest and best use of the real estate investment. For the nine months ended September 30, 2016 and 2015 , we recorded non-cash impairment charges totaling approximately $9.0 million and $0.1 million , respectively, related to the impairment of consolidated real estate assets. The impairment losses recorded in 2016 primarily relate to assets assessed for impairment due to a change in management’s estimate of the intended hold periods. The impairment loss recorded in 2015 related to final estimated closing costs incurred in connection with the disposition of a property that was impaired in 2014. For our unconsolidated real estate assets, at each reporting date we compare the estimated fair value of our investment to the carrying amount. An impairment charge is recorded to the extent the fair value of our investment is less than the carrying amount and the decline in value is determined to be other than a temporary decline. We had no impairment charges related to our investments in unconsolidated entities for the nine months ended September 30, 2016 and 2015 . In evaluating our investments for impairment, management makes several estimates and assumptions, including, but not limited to, the projected date of disposition (the intended hold period) and sales price for each property, the estimated future cash flows of each property during our estimated ownership period, and for unconsolidated investments, the estimated future distributions from the investment. A change in these estimates and assumptions could result in understating or overstating the carrying amount of our investments which could be material to our financial statements. We undergo continuous evaluations of property level performance, credit market conditions, and financing options. If our assumptions regarding the cash flows expected to result from the use and eventual disposition of our properties decrease or our expected hold periods decrease, we may incur future impairment charges on our real estate-related assets. In addition, we may incur impairment charges on assets classified as held for sale in the future if the carrying amount of the asset upon classification as held for sale exceeds the estimated fair value, less costs to sell. Accounts Receivable, net The following is a summary of our accounts receivable as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, December 31, Straight-line rental revenue receivable $ 64,385 $ 73,420 Tenant receivables 5,130 5,972 Non-tenant receivables 581 1,549 Allowance for doubtful accounts (2,996 ) (4,713 ) Total $ 67,100 $ 76,228 Our allowance for doubtful accounts is an estimate based on management’s evaluation of accounts where it has determined that a tenant may not meet its financial obligations. In these situations, management uses its judgment, based on the facts and circumstances, and records a reserve for that tenant against amounts due to reduce the receivable to an amount it believes is collectible. These reserves are reevaluated and adjusted as additional information becomes available. Investments in Unconsolidated Entities Investments in unconsolidated entities consist of our noncontrolling interests in properties. We account for these investments using the equity method of accounting in accordance with GAAP. We use the equity method of accounting when we have significant influence, but not control, of the decision-making involved in the operating and financial decisions of these investments and thereby have some responsibility to create a return on our investment. The equity method of accounting requires these investments to be initially recorded at cost and subsequently increased (decreased) for our share of net income (loss), including eliminations for our share of inter-company transactions, and increased (decreased) for contributions (distributions). To the extent that we contribute assets to an unconsolidated entity, our investment in the unconsolidated entity is recorded at our cost basis in the assets that were contributed to the entity. To the extent that our cost basis is different than the basis reflected at the entity level, the basis difference is generally amortized over the life of the related asset and included in our share of equity in operations of investments. For unconsolidated investments that have properties under development, we capitalize interest expense to our investment basis using our weighted average interest rate of consolidated debt. Capitalization begins when we are engaged in the activities necessary to get the property ready for its intended use. We cease capitalization when the development is completed and ready for its intended use or if the intended use changes such that capitalization is no longer appropriate. For the nine months ended September 30, 2016 , we capitalized interest expense of approximately $0.5 million for an unconsolidated entity with property under development, which is included in our investments from unconsolidated entities on our condensed consolidated balance sheet. For the nine months ended September 30, 2015 , we had no capitalized interest expense associated with unconsolidated entities. Other Intangible Assets, net Other intangible assets consist of below-market ground leases on properties where a third party owns and has leased the underlying land to us. As of September 30, 2016 , and December 31, 2015 , the cost basis and accumulated amortization related to our consolidated other intangible assets were as follows (in thousands): September 30, December 31, Cost $ 11,277 $ 11,177 Less: accumulated amortization (1,389 ) (1,091 ) Net $ 9,888 $ 10,086 Revenue Recognition We recognize rental income generated from all leases of consolidated real estate assets on a straight-line basis over the terms of the respective leases, including the effect of rent holidays, if any. Each of the amounts presented below include rental revenue amounts recognized in discontinued operations. The total net increase to rental revenue due to straight-line rent adjustments for the three months ended September 30, 2016 and 2015 , was approximately $0.3 million and $2.1 million , respectively. The total net increase to rental revenue due to straight-line rent adjustments for the nine months ended September 30, 2016 and 2015 , was approximately $4.1 million and $9.1 million , respectively. When a tenant exceeds its tenant improvement allowance, this amount is reimbursed to us and recorded as a deferred rent liability, which is recognized as rental revenue over the life of the lease. The total net increase to rental revenue due to this deferred rent for the three months ended September 30, 2016 and 2015 , was approximately $0.6 million and $0.7 million , respectively. The total net increase to rental revenue due to this deferred rent for the nine months ended September 30, 2016 and 2015 , was approximately $2.5 million and $1.8 million , respectively. Our rental revenue also includes amortization of acquired above- and below-market leases. The total net increase to rental revenue due to the amortization of acquired above- and below-market leases for the three months ended September 30, 2016 and 2015 , was approximately $0.9 million and $2.1 million , respectively. The total net increase to rental revenue due to the amortization of acquired above- and below-market leases for the nine months ended September 30, 2016 and 2015 , was approximately $3.4 million and $4.6 million , respectively. Revenues relating to lease termination fees are recognized on a straight-line basis amortized from the time that a tenant’s right to occupy the leased space is modified through the end of the revised lease term. For the three months ended September 30, 2016 and 2015 , we recognized lease termination fees of approximately $0.3 million and $2.0 million , respectively. For the nine months ended September 30, 2016 and 2015 , we recognized lease termination fees of approximately $1.6 million and $2.7 million , respectively.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Newly Adopted Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (“FASB”) issued an update that clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. The compensation expense related to such awards will be delayed until it becomes probable that the performance target will be met. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted, and may be applied either prospectively or retrospectively. The adoption of this guidance on January 1, 2016, did not have a material impact on our financial statements. In January 2015, the FASB issued guidance simplifying income statement presentation by eliminating the concept of extraordinary items. An entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted and may be applied either prospectively or retrospectively. The adoption of this guidance on January 1, 2016, did not have a material impact on our financial statements. In February 2015, the FASB issued updated guidance related to accounting for consolidation of certain legal entities. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted. Under the updated guidance, companies are required to evaluate whether they should consolidate certain legal entities under a revised consolidation model. All legal entities are subject to reevaluation under the revised consolidation model that modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. A full or modified retrospective method of adoption is allowed. We adopted this guidance using the modified retrospective method on January 1, 2016, which did not have a material impact on our financial statements, but additional disclosures are required and have been included in these notes to condensed consolidated financial statements related to certain of our entities that were determined to be a VIE. In April 2015, the FASB issued guidance related to accounting for debt issuance costs. The guidance simplifies presentation by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts or premiums. In August 2015, the FASB further clarified this guidance to state that an entity may elect to continue to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not any outstanding borrowings exist on the line-of-credit. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. The adoption and retrospective application of this guidance on January 1, 2016, changed the classification of certain deferred financing fees on our balance sheet, but it did not otherwise have an impact on our financial statements. As of December 31, 2015, approximately $8.9 million in net deferred financing costs were reclassified from deferred financing fees and netted against our notes payable. As of December 31, 2015, approximately $3.1 million in net deferred financing fees associated with the revolving line of credit remained as an asset on the balance sheet. New Accounting Pronouncements to be Adopted In May 2014, the FASB issued guidance to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Lease contracts will be excluded from this revenue recognition criteria; however, the sale of real estate will be required to follow the new model. Expanded quantitative and qualitative disclosures regarding revenue recognition will be required for contracts that are subject to this guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. We are currently evaluating the impact this guidance will have on our financial statements when adopted. In August 2014, the FASB issued guidance regarding management’s responsibility in evaluating whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We do not believe the adoption of this guidance will have a material impact on our disclosures. In February 2016, the FASB issued updated guidance which sets out revised principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The guidance requires lessees to recognize assets and liabilities for operating leases with lease terms greater than twelve months on the balance sheet. The guidance further modifies lessors’ classification criteria for leases and the accounting for sales-type and direct financing leases. New disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases are also required. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted and is required to be adopted using the modified retrospective approach. Upon adoption, the Company will recognize a lease liability and a right-of-use asset for operating leases where it is the lessee, such as ground leases and office and equipment leases. We are currently evaluating the impact this guidance will have on our financial statements when adopted. In March 2016, the FASB issued guidance which will affect accounting for certain aspects of share-based payments for employees. The guidance requires income statement recognition of income tax effects of the awards when the awards vest or are settled. The guidance also changes the employers’ accounting for forfeitures as well as for an employee’s use of shares to satisfy their income tax withholding obligations. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact this guidance will have on our financial statements when adopted. In March 2016, the FASB issued amended guidance which simplifies the accounting for equity method investments by removing the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendment requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact this guidance will have on our financial statements when adopted. In June 2016, the FASB issued amended guidance which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This is different from the current guidance as this will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. Financial assets that are measured at amortized cost will be required to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. Generally, the pronouncement requires a modified retrospective method of adoption. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact this guidance will have on our financial statements when adopted. In August 2016, the FASB issued amended guidance on classification of certain cash receipts and payments in the statement of cash flows. Of the eight types of cash flows discussed in the new standard, we believe the classification of debt prepayment and debt extinguishment costs as financing outflows will impact the Company as these items are currently reflected as operating outflows. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted and is required to be applied retrospectively to all periods presented. We are currently evaluating the impact this guidance will have on our financial statements when adopted.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value, as defined by GAAP, is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the fair value hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the fair value hierarchy) has been established. Assets and Liabilities Measured at Fair Value on a Recurring Basis Derivative financial instruments We use derivative financial instruments, such as interest rate swaps, to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis of the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. We incorporate credit valuation adjustments (“CVAs”) to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the CVAs associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, we have assessed the significance of the impact of the CVAs on the overall valuation of our derivative positions and have determined that they are not significant. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Unrealized gains or losses on derivatives are recorded in accumulated other comprehensive income (loss) (“OCI”) within equity at each measurement date. Our derivative financial instruments are included in “other liabilities” on our condensed consolidated balance sheets. The following table sets forth our financial liabilities measured at fair value on a recurring basis, which equals book value, by level within the fair value hierarchy as of September 30, 2016 , and December 31, 2015 (in thousands). Basis of Fair Value Measurements Quoted Prices In Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Description September 30, 2016 Derivative financial instruments: Liabilities $ (17,082 ) $ — $ (17,082 ) $ — December 31, 2015 Derivative financial instruments: Liabilities $ (3,866 ) $ — $ (3,866 ) $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Impairment of Real Estate Related Assets We have recorded non-cash impairment charges related to a reduction in the fair value of certain of our assets. The inputs used to calculate the fair value of these assets included projected cash flows and a risk-adjusted rate of return that we estimated would be used by a market participant in valuing these assets or by obtaining third-party broker valuation estimates, bona fide purchase offers, or the expected sales price of an executed sales agreement. During the nine months ended September 30, 2016 , we recorded impairment losses of approximately $9.0 million for properties assessed for impairment due to changes in management’s estimate of the intended hold periods. During the year ended December 31, 2015 , we recorded impairment losses of approximately $0.1 million for final estimated closing costs incurred in connection with the disposition of a property which was impaired at December 31, 2014, and sold in 2015. The following table summarizes those assets which were measured at fair value and impaired during 2016 and 2015 (in thousands): Basis of Fair Value Measurements Description Fair Value of Assets at Impairment Quoted Prices In Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses for the nine months ended September 30, 2016 Real estate held for sale (1) $ 9,309 $ — $ 4,570 $ 4,739 $ (8,977 ) for the year ended December 31, 2015 Real estate $ 11,489 $ — $ 11,489 $ — $ (132 ) _______________ (1) Fair value of real estate held for sale includes selling costs. The following table sets forth quantitative information about the unobservable inputs (Level 3) of our real estate that was recorded at fair value as of the date of its impairment in 2016 (in thousands): Fair Value of Assets at Impairment Valuation Technique Unobservable Input Value Real estate on which impairment losses were recognized $ 4,739 Discounted Cash Flow Discount rate 12.0% Terminal capitalization rate 9.5% Financial Instruments not Reported at Fair Value Financial instruments held at September 30, 2016 , and December 31, 2015 , but not measured at fair value on a recurring basis include cash and cash equivalents, restricted cash, accounts receivable, notes payable, accounts payable, payables to related parties, accrued liabilities, distributions payable, and other liabilities. With the exception of notes payable, the financial statement carrying amounts of these items approximate their fair values due to their short-term nature. Estimated fair values for notes payable have been determined using recent trading activity and/or bid-ask spreads and are classified as Level 2 in the fair value hierarchy. Carrying amounts of our notes payable and the related estimated fair value as of September 30, 2016 , and December 31, 2015 , are as follows (in thousands): September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Notes payable $ 845,758 $ 849,796 $ 1,080,425 $ 1,084,625 Less: unamortized debt issuance costs (7,838 ) (8,854 ) Notes payable, net $ 837,920 $ 1,071,571

Real Estate Activities

Real Estate Activities	9 Months Ended
	Sep. 30, 2016
Real Estate Activities [Abstract]
Real Estate Activities	Real Estate Activities Sales of Real Estate Reported in Continuing Operations On March 1, 2016, we sold our Lawson Commons property for a contract sales price of approximately $68.4 million , resulting in proceeds from sale of approximately $60.9 million . Lawson Commons is located in St. Paul, Minnesota, and contains approximately 436,000 rentable square feet. On June 17, 2016, we sold our FOUR40 property for a contract sales price of approximately $191.0 million , resulting in proceeds from sale of approximately $189.0 million . FOUR40 is located in Chicago, Illinois, and contains approximately 1.0 million rentable square feet. We are entitled to an additional payment of up to $12.5 million subject to future performance of the property. On September 30, 2016, we sold our Hurstbourne Business Center properties for a combined contract sales price of approximately $41.0 million , resulting in proceeds from sale of approximately $39.8 million . Hurstbourne Business Center is an approximately 418,000 square feet mixed use development located in Louisville, Kentucky, and is comprised of Hurstbourne Park and Hurstbourne Place, both office buildings, and Hurstbourne Plaza, a retail center. Properties sold in 2016 and 2015 and included in continuing operations contributed income of approximately $0.2 million and a loss of approximately $2.3 million to our net loss for the three months ended September 30, 2016 and 2015 , respectively. Properties sold in 2016 and 2015 and included in continuing operations contributed a loss of approximately $0.7 million and $5.1 million to our net loss for the nine months ended September 30, 2016 and 2015 , respectively. Real Estate Held for Sale As of September 30, 2016, five of our properties (One Oxmoor Place, Steeplechase Place, Lakeview, Hunnington, and 801 Thompson) were each held for sale. On October 27, 2016, 801 Thompson was sold for a contract sales price of approximately $4.9 million . We had no properties held for sale as of December 31, 2015. The major classes of assets and obligations associated with real estate held for sale as of September 30, 2016, are as follows (in thousands): September 30, 2016 Land $ 6,893 Buildings and improvements, net 27,995 Accounts receivable and other assets, net 781 Lease intangibles, net 1,357 Assets associated with real estate held for sale $ 37,026 Acquired below-market leases, net $ 50 Accrued liabilities 794 Other liabilities 550 Obligations associated with real estate held for sale $ 1,394 Sales of Real Estate Reported in Discontinued Operations No properties sold in 2016 have been classified as discontinued operations. The table below summarizes the results of operations for properties that have been classified as discontinued operations in the accompanying condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 (in thousands). This includes two properties that were held for sale at December 31, 2014 and sold in 2015. Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Rental revenue $ 27 $ 4,593 Expenses Property operating expenses 6 1,729 Interest expense — 720 Real estate taxes — 633 Property management fees — 121 Total expenses 6 3,203 Income from discontinued operations 21 1,390 Gain on sale of discontinued operations 403 15,086 Discontinued operations $ 424 $ 16,476

Investments in Unconsolidated E

Investments in Unconsolidated Entities	9 Months Ended
	Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Entities	Investments in Unconsolidated Entities We participate in real estate ventures for the purpose of acquiring and developing office properties in which we may or may not have a controlling financial interest. Our investments in unconsolidated entities consist of our noncontrolling interests in certain properties that are accounted for using the equity method of accounting. The following is a summary of our investments in unconsolidated entities as of September 30, 2016 , and December 31, 2015 (dollar amounts in thousands): Ownership Interest Investment Balance Entity Name Property September 30, December 31, 2015 September 30, December 31, 1301 Chestnut Associates, L.P. (1) Wanamaker Building 60.00 % 60.00 % $ 44,229 $ 42,898 Domain Junction LLC (2) (3) Domain 2 & 7 49.84 % 49.84 % 10,163 26,588 Domain Junction 8 Venture LLC (2) (3) Domain 8 50.00 % 50.00 % 17,921 14,193 COLDC 54 Holdings, LLC (3) Colorado Building 10.00 % 10.00 % 770 949 GSTDC 72 Holdings, LLC (3) 1325 G Street 10.00 % 10.00 % 3,871 4,370 Total $ 76,954 $ 88,998 _________________ (1) All major decisions for this entity require a vote of 70% (and in some instances 75% ) of the ownership group. (2) All major decisions for this entity are made by the other owner. (3) We have evaluated our investments in unconsolidated entities in order to determine if they are VIEs. Based on our assessment, we have identified each of these entities as a VIE, but we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the economic performance of these entities. For these VIEs in which we are not deemed to be the primary beneficiary, we continue to account for them using the equity method. The maximum amount of exposure to loss with respect to these VIEs is the carrying amount of our investment. Additionally, we are required to fund up to $0.3 million in additional capital contributions to the Domain Junction 8 Venture LLC for the development of Domain 8. At September 30, 2016 , these VIEs have total assets of approximately $342.6 million and total liabilities of approximately $250.1 million , as outlined in the summarized balance sheets presented below. The summarized balance sheets of our unconsolidated entities as of as of September 30, 2016 , and December 31, 2015 , are as follows (in thousands): as of September 30, 2016 Total Wanamaker Other (50% or less owned entities) Real estate, net $ 407,132 $ 126,076 $ 281,056 Real estate intangibles, net 50,413 10,776 39,637 Cash, cash equivalents and restricted cash 22,728 12,551 10,177 Other assets 21,978 10,227 11,751 Total assets $ 502,251 $ 159,630 $ 342,621 Notes payable, net $ 298,974 $ 70,557 $ 228,417 Accounts payable 12,855 1,007 11,848 Other liabilities 15,087 5,266 9,821 Equity 175,335 82,800 92,535 Total liabilities and equity $ 502,251 $ 159,630 $ 342,621 Company’s share of equity $ 69,740 $ 49,680 $ 20,060 Basis differences (1) 7,214 (5,451 ) 12,665 Carrying value of the Company’s investment in unconsolidated entities $ 76,954 $ 44,229 $ 32,725 ____________________ (1) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differences occur from impairment of investments and upon the transfer of assets that were previously owned by us into a joint venture. In addition, certain acquisition, transaction and other costs, including capitalized interest, may not be reflected in the net assets at the joint venture level. as of December 31, 2015 Total Wanamaker Other (50% or less owned entities) Real estate, net $ 379,646 $ 128,358 $ 251,288 Real estate intangibles, net 54,470 12,087 42,383 Cash, cash equivalents and restricted cash 23,814 12,819 10,995 Other assets 16,796 8,851 7,945 Total assets $ 474,726 $ 162,115 $ 312,611 Notes payable, net $ 246,500 $ 75,124 $ 171,376 Accounts payable 8,187 21 8,166 Other liabilities 19,144 6,386 12,758 Equity 200,895 80,584 120,311 Total liabilities and equity $ 474,726 $ 162,115 $ 312,611 Company’s share of equity $ 81,982 $ 48,350 $ 33,632 Basis differences (1) 7,016 (5,452 ) 12,468 Carrying value of the Company’s investment in unconsolidated entities $ 88,998 $ 42,898 $ 46,100 ________________ (1) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differences occur from impairment of investments and upon the transfer of assets that were previously owned by us into a joint venture. In addition, certain acquisition, transaction and other costs, including capitalized interest, may not be reflected in the net assets at the joint venture level. Our equity in operations of investments represents our proportionate share of the combined earnings and losses of our investments for the period of our ownership. The summarized statements of operations of our unconsolidated entities for the three and nine months ended September 30, 2016 and 2015, are as follows (in thousands): Three months ended September 30, 2016 Total Wanamaker Other Revenue $ 15,010 $ 6,766 $ 8,244 Income (loss) from continuing operations $ 665 $ 837 $ (172 ) Gain on sale of real estate 1,000 — 1,000 Net income $ 1,665 $ 837 $ 828 Company’s share of income (loss) from continuing operations $ 587 $ 502 $ 85 Company’s share of gain on sale of real estate 60 — 60 Company’s share of net income $ 647 $ 502 $ 145 Basis differences and elimination of inter-entity fees (1 ) 128 (129 ) Equity in operations of investments $ 646 $ 630 $ 16 ________________ (1) Includes combined earnings and losses for Domain 2&7, Domain 8, Colorado Building, 1325 G Street, and recognition of a previously deferred gain on the sale of Paces West, a property we sold on November 30, 2015. Three months ended September 30, 2015 Total Wanamaker Other Revenue $ 16,558 $ 6,416 $ 10,142 Income (loss) from continuing operations $ (6,647 ) $ 526 $ (7,173 ) Net income (loss) $ (6,647 ) $ 526 $ (7,173 ) Company’s share of net income (loss) $ (298 ) $ 315 $ (613 ) Basis differences and elimination of inter-entity fees 139 124 15 Equity in operations of investments $ (159 ) $ 439 $ (598 ) _______________ (1) Includes combined earnings and losses for Domain 2 & 7, Domain 8, Colorado Building, 1325 G Street, and Paces West, a property in which we owned a 10% interest during the three months ended September 30, 2015 . Paces West was sold on November 30, 2015. Domain 2 & 7 and Domain 8 were included as unconsolidated entities beginning upon their acquisition on July 23, 2015. Nine months ended September 30, 2016 Total Wanamaker Other Revenue $ 43,469 $ 19,913 $ 23,556 Income (loss) from continuing operations $ 1,820 $ 2,716 $ (896 ) Gain on sale of real estate 1,000 — 1,000 Net income $ 2,820 $ 2,716 $ 104 Company’s share of income (loss) from continuing operations $ 1,831 $ 1,630 $ 201 Company’s share of gain on sale of real estate 60 — 60 Company’s share of net income $ 1,891 $ 1,630 $ 261 Basis differences and elimination of inter-entity fees (7 ) 383 (390 ) Equity in operations of investments $ 1,884 $ 2,013 $ (129 ) _____________________ (1) Includes combined earnings and losses for Domain 2&7, Domain 8, Colorado Building, and 1325 G Street, and recognition of a previously deferred gain on the sale of Paces West, a property we sold on November 30, 2015. Nine months ended September 30, 2015 Total Wanamaker Other Revenue $ 36,247 $ 19,370 $ 16,877 Income (loss) from continuing operations $ (10,522 ) $ 1,437 $ (11,959 ) Net income (loss) $ (10,522 ) $ 1,437 $ (11,959 ) Company’s share of net income (loss) $ (230 ) $ 862 $ (1,092 ) Basis differences and elimination of inter-entity fees 383 365 18 Equity in operations of investments $ 153 $ 1,227 $ (1,074 ) _______________ (1) Includes combined earnings and losses for Domain 2 & 7, Domain 8, Colorado Building, 1325 G Street, and Paces West, a property in which we owned a 10% interest during the nine months ended September 30, 2016 . Paces West was sold on November 30, 2015. Colorado Building and 1325 G Street were included as unconsolidated entities beginning on June 30, 2015. Domain 2 & 7 and Domain 8 were included as unconsolidated entities upon their acquisition on July 23, 2015.

Real Estate Under Development

Real Estate Under Development	9 Months Ended
	Sep. 30, 2016
Real Estate Under Development [Abstract]
Real Estate Under Development	Real Estate Under Development When we are engaged in activities to get a potential development ready for its intended use, we capitalize interest, property taxes, insurance, ground lease payments, and direct construction costs. For the nine months ended September 30, 2016 , we capitalized a total of approximately $7.8 million , including approximately $0.2 million in interest. For the nine months ended September 30, 2015 , we capitalized a total of approximately $6.3 million , including approximately $0.9 million in interest. These costs are classified as real estate under development on our condensed consolidated balance sheets until such time that the development is complete.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities We may be exposed to the risk associated with variability of interest rates that might impact our cash flows and the results of our operations. Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we have used interest rate swaps as part of our interest rate risk management strategy. Our interest rate swaps involve the receipt of variable-rate amounts from counterparties in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our hedging strategy of entering into interest rate swaps, therefore, is to eliminate or reduce, to the extent possible, the volatility of cash flows. The following table summarizes the notional values of our derivative financial instruments (in thousands) as of September 30, 2016 . The notional values provide an indication of the extent of our involvement in these instruments at September 30, 2016 , but do not represent exposure to credit, interest rate, or market risks. Type/Description Notional Value Index Strike Rate Effective Date Maturity Date Interest rate swap - cash flow hedge $ 125,000 one-month LIBOR 1.6775 % 12/31/14 10/31/19 Interest rate swap - cash flow hedge $ 125,000 one-month LIBOR 1.6935 % 04/30/15 10/31/19 Interest rate swap - cash flow hedge $ 125,000 one-month LIBOR 1.7615 % 06/30/15 05/31/22 Interest rate swap - cash flow hedge $ 150,000 one-month LIBOR 1.7695 % 06/30/15 05/31/22 The table below presents the fair value of our derivative financial instruments, included in “other liabilities” on our condensed consolidated balance sheets, as of September 30, 2016 , and December 31, 2015 (in thousands): Derivatives designated as hedging instruments: Derivative Liabilities September 30, December 31, Interest rate swaps $ (17,082 ) $ (3,866 ) The tables below present the effect of the change in fair value of derivative financial instruments in our condensed consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 (in thousands): Derivatives in Cash Flow Hedging Relationship Gain (loss) recognized in OCI on derivatives (effective portion) Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Interest rate swaps $ 2,602 $ (10,966 ) $ (12,810 ) $ (9,376 ) Amount reclassified from OCI into income (effective portion) Three Months Ended Nine Months Ended Location September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Interest expense (1) $ 1,654 $ 2,061 $ 5,083 $ 3,341 ______________ (1) Increases in fair value as a result of accrued interest associated with our swap transactions are recorded in accumulated OCI and subsequently reclassified into income. Such amounts are shown net in the statements of changes in equity and offset dollar for dollar. Amount recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Three Months Ended Nine Months Ended Location September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Interest expense (1) $ (1,534 ) $ — $ 407 $ — _____________ (1) Represents the portion of the change in fair value of our interest rate swaps attributable to the mismatch between an interest rate floor on our hedged debt and no floor on the index rate in our interest rate swaps which causes hedge ineffectiveness. Amounts reported in accumulated OCI related to derivatives will be reclassified to interest expense as interest payments and accruals are made on our variable-rate debt. During the next twelve months, we estimate that approximately $5.5 million will be reclassified as an increase to interest expense. As of September 30, 2016 , the fair value of our derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was approximately $17.8 million . As of September 30, 2016 , we have not posted any collateral related to these agreements. If we had breached any of these provisions at September 30, 2016 , we could have been required to settle our obligations under the agreements at the termination value of approximately $17.8 million . We have agreements with our derivative counterparties that contain provisions where if we default on any of our indebtedness for at least 30 days, during which time such default has not been remedied, and in all cases provided that the aggregate amount of all such default is not less than $10.0 million for recourse debt or $75.0 million for non-recourse debt, then we could also be declared in default on our derivative obligations.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	Notes Payable Our notes payable, net were approximately $837.9 million as of September 30, 2016 . Approximately $269.9 million of these notes payable, net were secured by real estate assets with a carrying value of approximately $262.2 million as of September 30, 2016 . As of September 30, 2016 , all of our outstanding debt was fixed rate debt (or effectively fixed rate debt, through the use of interest rate swaps), with the exception of approximately $50.0 million from certain borrowings under our credit facility. As of September 30, 2016 , the stated annual interest rates on our outstanding debt, excluding mezzanine financing, ranged from approximately 2.02% to 6.09% . We had mezzanine financing on one property with a stated annual interest rate of 9.80% . As of September 30, 2016 , the effective weighted average interest rate for our consolidated debt is approximately 4.17% . For our loan that is in default and detailed below, we incur a default interest rate that is 500 basis points higher than the stated interest rate, which resulted in an overall effective weighted average interest rate of approximately 4.46% as of September 30, 2016 , for our consolidated debt and an increase in interest expense for the nine months ended September 30, 2016 , of approximately $1.9 million . We anticipate, although we can provide no assurance, that when the property to which such loan relates is sold, or if ownership of this property is conveyed to the lender, the default interest will be forgiven. Our loan agreements generally require us to comply with certain reporting and financial covenants. As of September 30, 2016 , we were in default on a non-recourse property loan with an outstanding balance of approximately $48.3 million secured by our Fifth Third Center property located in Columbus, Ohio, which has a carrying value of approximately $34.0 million as of September 30, 2016 . A receiver was appointed for this property in March 2016. The loan had an original maturity date of July 2016, and we are currently working with the lender to dispose of this property on their behalf. As of September 30, 2016 , other than the default discussed above, we believe we were in compliance with the covenants under each of our loan agreements, including our credit facility. Excluding debt already matured as detailed above, our consolidated debt has maturity dates that range from January 2017 to June 2022. The following table provides information regarding the timing of principal payments of our notes payable, net as of September 30, 2016 (in thousands): Principal payments due in: October 2016 - December 2016 $ 49,104 2017 130,021 2018 1,622 2019 301,723 2020 1,814 Thereafter 361,474 Less: unamortized debt issuance costs (1) (7,838 ) Notes payable, net $ 837,920 ________________ (1) Excludes approximately $2.7 million of unamortized debt issuance costs associated with the revolving line of credit because these costs are presented as an asset on our condensed consolidated balance sheets. Subsequent to September 30, 2016 , we repaid (without penalty) approximately $70.0 million of secured debt that was due in January 2017. As discussed in Note 3, on January 1, 2016, we adopted the new accounting standard on deferred debt issuance costs. As of September 30, 2016 , and December 31, 2015, approximately $7.8 million and $8.9 million , respectively, of unamortized deferred debt issuance costs associated with our debt are presented on the condensed consolidated balance sheets netted against the notes payable. As of September 30, 2016 , and December 31, 2015, unamortized deferred debt issuance costs of approximately $2.7 million and $3.1 million , respectively, associated with the revolving line of credit under our credit facility, discussed below, continue to be presented as an asset on the condensed consolidated balance sheets. Deferred debt issuance costs are recorded at cost and amortized to interest expense using a straight-line method that approximates the effective interest method over the anticipated life of the related debt. Credit Facility We have a credit agreement through our operating partnership, Tier OP. In March 2016, the available borrowings under the credit facility were increased, and as a result of meeting certain financial covenants, the credit facility was converted from secured to unsecured and now provides for total borrowings of up to $860.0 million , subject to our compliance with certain financial covenants. The facility consists of a $300.0 million term loan, a $275.0 million term loan, and a $285.0 million revolving line of credit. The first term loan matures on December 18, 2019. The second term loan matures on June 30, 2022. The revolving line of credit matures on December 18, 2018, and can be extended one additional year subject to certain conditions and payment of an extension fee. The annual interest rate on the credit facility is equal to either, at our election, (1) the “base rate” (calculated as the greatest of (i) the agent’s “prime rate”; (ii) 0.5% above the Federal Funds Effective Rate; or (iii) the LIBOR Market Index Rate plus 1.0% ) plus the applicable margin or (2) LIBOR for an interest period of one , three , or six months plus the applicable margin. The applicable margin will be determined based on the ratio of total indebtedness to total asset value and ranges from 35 basis points to 250 basis points. We have entered into interest rate swap agreements to hedge interest rates on $525.0 million of these borrowings to manage our exposure to future interest rate movements. All amounts owed are guaranteed by us and certain subsidiaries of Tier OP. As of September 30, 2016 , we had approximately $575.0 million in borrowings outstanding under the term loans, and no borrowings outstanding under the revolving line of credit with the ability, subject to our most restrictive financial covenants, to borrow an additional approximately $137.3 million under the facility as a whole. As of September 30, 2016 , the weighted average effective interest rate for borrowings under the credit facility as a whole, inclusive of our interest rate swaps, was approximately 3.34% .

Equity

Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Equity	Equity Series A Convertible Preferred Stock As of December 31, 2015, we had 10,000 shares of Series A participating, voting, convertible preferred stock (the “Series A Convertible Preferred Stock”) outstanding. In connection with the listing of our common stock on the NYSE on July 23, 2015, an automatic conversion of the Series A Convertible Preferred Stock was triggered with the number of shares to be issued not determinable until March 2, 2016, based on the Conversion Company Value, as defined in the Articles Supplementary. As of September 30, 2015 , the value of the Series A Convertible Preferred Stock was reduced from approximately $4.6 million to approximately $2.7 million , based on a lower estimated Conversion Company Value. On March 2, 2016, based on the Conversion Company Value, no shares of common stock were issued, and the shares of Series A Convertible Preferred Stock were canceled. Stock Plans Our 2015 Equity Incentive Plan allows for and our 2005 Incentive Award Plan allowed for equity-based incentive awards to be granted to our employees, non-employee directors, and key persons as detailed below: Stock options. As of September 30, 2016 , we had outstanding options held by our independent directors to purchase 8,330 shares of our common stock at a weighted average exercise price of approximately $40.13 per share. These options are all fully vested and have expiration dates that range from July 2018 to June 2022. The options were anti-dilutive to earnings per share for each period presented. Restricted stock units. We have outstanding restricted stock units (“RSUs”) held by our independent directors. These units vest 13 months after the grant date. Subsequent to vesting, the restricted stock units will be converted to an equivalent number of shares of common stock upon the earlier to occur of the following events or dates: (i) separation from service for any reason other than cause; (ii) a change in control of the Company; (iii) death; or (iv) specific dates chosen by the independent directors that range from January 2017 to December 2020. Expense is measured at the grant date based on the estimated fair value of the award and is recognized over the vesting period. The following is a summary of the number of outstanding RSUs held by our independent directors as of September 30, 2016 and 2015 : September 30, 2016 September 30, 2015 Units Weighted Average Price per unit Units Weighted Average Price per unit Outstanding at the beginning of the year 28,705 $ 18.29 13,841 $ 24.69 Issued 18,275 $ 15.05 — $ — Forfeited — $ — (2 ) $ 24.82 Converted (7,725 ) $ 19.96 (3,731 ) $ 24.57 Outstanding at the end of the period (1) 39,255 $ 16.45 10,108 $ 24.73 _____________ (1) As of September 30, 2016 , 6,046 RSUs held by our independent directors are vested. On January 26, 2016, 111,063 RSUs were issued to employees with a grant price of $15.26 per unit. These units vest on December 31, 2018, at which time they will be converted into a number of shares of common stock, which could range from zero shares to 222,126 shares, based on our annualized total stockholder return (“TSR”) percentage as compared to three metrics: our TSR on a predetermined absolute basis, the TSR of the constituent companies of the NAREIT Office Index (unweighted), and the TSR of a select group of peer companies. Expense is measured at the grant date, based on the estimated fair value of the award ( $19.18 per unit) as determined by a Monte Carlo simulation based model using the following assumptions: Assumption Value Expected volatility 24% Risk-free interest rate 1.15% Expected term 35 months Expected dividend yield 4.5% RSUs were anti-dilutive to earnings per share for each period presented. Restricted stock. We have outstanding restricted stock held by employees. For restricted stock issued in 2016, restrictions lapse one-third on each of December 30, 2016, 2017, and 2018. For restricted stock issued in December 2015, restrictions lapse one-third on the grant date, one-third one year after the grant date, and one-third two years after the grant date. For restricted stock issued prior to December 2015, restrictions lapse in 25% increments annually over the four -year period following the grant date. Compensation cost is measured at the grant date, based on the estimated fair value of the award and is recognized as expense over the service period based on a tiered lapse schedule and estimated forfeiture rates. The restricted stock was anti-dilutive to earnings per share for each period presented. The following is a summary of the number of shares of restricted stock outstanding as of September 30, 2016 and 2015 : September 30, 2016 September 30, 2015 Shares Weighted Average Price per share Shares Weighted Average Price per share Outstanding at the beginning of the year 281,905 $ 22.46 118,563 $ 24.73 Issued 119,523 $ 15.19 106,811 $ 26.88 Forfeiture (8,406 ) $ 19.98 (2,203 ) $ 25.64 Restrictions lapsed (59,673 ) $ 25.64 (33,726 ) $ 24.65 Outstanding at the end of the period 333,349 $ 19.34 189,445 $ 25.95 For the three months ended September 30, 2016 and 2015 , we recognized a total of approximately $1.1 million and $0.5 million , respectively, for compensation expense related to the amortization of all of the equity-based incentive awards outlined above. For the nine months ended September 30, 2016 and 2015 , we recognized a total of approximately $3.1 million and $1.6 million , respectively, for compensation expense related to the amortization of all of the equity-based incentive awards outlined above. As of September 30, 2016 , the total remaining compensation cost on unvested awards was approximately $4.8 million , with a weighted average remaining contractual life of approximately 1.7 years. Distributions Our board of directors reinstated quarterly cash distributions in the second quarter of 2015 at $0.18 per share of common stock and has authorized cash distributions in the same amount for each quarter since that time. Distributions declared for each quarter were paid in the subsequent quarter. The following table reflects the distributions declared for our common stock, Series A Convertible Preferred Stock, and noncontrolling interests (OP units and vested restricted stock units) during the nine months ended September 30, 2016 and for the year ended December 31, 2015 (in thousands). Common Stockholders Preferred Stockholders Noncontrolling Interests Total 2016 1st Quarter $ 8,600 $ 8,594 $ — $ 6 2nd Quarter 8,601 8,594 — 7 3rd Quarter 8,602 8,595 — 7 Total $ 25,803 $ 25,783 $ — $ 20 2015 1st Quarter $ — $ — $ — $ — 2nd Quarter 9,028 9,011 2 15 3rd Quarter 8,556 8,539 2 15 4th Quarter 8,596 8,576 2 18 Total $ 26,180 $ 26,126 $ 6 $ 48

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of September 30, 2016 , we had commitments of approximately $27.2 million for future tenant improvements and leasing commissions. We have employment agreements with five of our executive officers. The term of each employment agreement ends on July 15, 2018, provided that the term will automatically continue for an additional one -year period unless either party provides 60 days written notice of non-renewal prior to the expiration of the initial term. The agreements provide for lump sum payments and an immediate lapse of restrictions on compensation received under the long-term incentive plan upon termination of employment without cause. As a result, in the event we terminated all of these agreements without cause as of September 30, 2016 , we would have recognized approximately $12.2 million in related compensation expense.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Supplemental cash flow information is summarized below for the nine months ended September 30, 2016 and 2015 (in thousands): Nine Months Ended September 30, 2016 September 30, 2015 Interest paid, net of amounts capitalized $ 29,904 $ 42,764 Income taxes paid $ 2,001 $ 977 Non-cash investing activities: Property and equipment additions in accounts payable and accrued liabilities $ 10,698 $ 11,382 Amortization of deferred financing fees in building and improvements, net $ — $ 240 Contribution of land to non wholly-owned entity $ — $ 14,002 Liabilities assumed through the purchase of real estate $ — $ 1,800 Non-cash financing activities: Cancellation of Series A Convertible Preferred Stock $ 2,700 $ — Mortgage notes assumed by purchaser $ — $ 47,074 Dilution of Series A Convertible Preferred Stock $ — $ 1,926 Financing costs in accounts payable and accrued liabilities $ — $ 33 Unrealized loss on interest rate derivatives $ 12,810 $ 9,376 Accrual for distributions declared $ 8,602 $ 8,556 Contributions from noncontrolling interests $ — $ 1,000

Basis of Presentation and Sig20

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Reclassification	Reclassification Certain amounts previously reflected in the prior year condensed consolidated balance sheet and condensed consolidated statement of cash flows have been reclassified to conform to our 2016 presentation.
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation Our condensed consolidated financial statements include our accounts, the accounts of variable interest entities (“VIEs”), if any, in which we are the primary beneficiary, and the accounts of other subsidiaries over which we have control. VIEs, as defined by GAAP, are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. Interests in entities acquired are evaluated based on applicable GAAP guidance which requires the consolidation of VIEs in which we are deemed to be the primary beneficiary. We adopted new accounting guidance on January 1, 2016, and certain of our entities were determined to be VIEs under the new guidance. While this determination under the new guidance did not impact the conclusions regarding consolidation of these entities, we have included additional disclosures relating to these entities. The determination of the primary beneficiary requires management to make significant estimates and judgments about our rights, obligations, and economic interests in such entities as well as the same of the other owners. For entities in which we have less than a controlling financial interest or entities with respect to which we are not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. If the interest is in an entity that is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control and/or substantive participating rights under the respective ownership agreement. All inter-company transactions, balances, and profits have been eliminated in consolidation.
Real Estate	We amortize the value of in-place leases, in-place tenant improvements, and in-place leasing commissions to expense over the initial term of the respective leases. The tenant relationship values are amortized to expense over the tenants’ respective initial lease terms and any anticipated renewal periods, but in no event does the amortization period for intangible assets or liabilities exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the acquired lease intangibles related to that tenant would be charged to expense. The estimated remaining average useful lives for acquired lease intangibles range from an ending date of October 2016 to an ending date of March 2024.
Impairment of Real Estate Related Assets	Impairment of Real Estate-Related Assets For our consolidated real estate assets, we monitor events and changes in circumstances indicating that the carrying amounts of the real estate assets may not be recoverable. When such events or changes in circumstances are present, we assess potential impairment by comparing estimated future undiscounted cash flows expected to be generated over the life of the asset including its eventual disposition, to the carrying amount of the asset. In the event that the carrying amount exceeds the estimated future undiscounted cash flows and also exceeds the fair value of the asset, we recognize an impairment loss to adjust the carrying amount of the asset to its estimated fair value. Our process to estimate the fair value of an asset involves using bona fide purchase offers or the expected sales price of an executed sales agreement, which would be considered Level 1 or Level 2 assumptions within the fair value hierarchy. To the extent that this type of third-party information is unavailable, we estimate projected cash flows and a risk-adjusted rate of return that we believe would be used by a third party market participant in estimating the fair value of an asset. This is considered a Level 3 assumption within the fair value hierarchy. These projected cash flows are prepared internally by the Company’s asset management professionals and are updated quarterly to reflect in-place and projected leasing activity, market revenue and expense growth rates, market capitalization rates, discount rates, and changes in economic and other relevant conditions. The Company’s Chief Financial Officer, Chief Accounting Officer, and Managing Director - Asset Management review these projected cash flows to assure that the valuation is prepared using reasonable inputs and assumptions which are consistent with market data or with assumptions that would be used by a third party market participant and assume the highest and best use of the real estate investment. For the nine months ended September 30, 2016 and 2015 , we recorded non-cash impairment charges totaling approximately $9.0 million and $0.1 million , respectively, related to the impairment of consolidated real estate assets. The impairment losses recorded in 2016 primarily relate to assets assessed for impairment due to a change in management’s estimate of the intended hold periods. The impairment loss recorded in 2015 related to final estimated closing costs incurred in connection with the disposition of a property that was impaired in 2014. For our unconsolidated real estate assets, at each reporting date we compare the estimated fair value of our investment to the carrying amount. An impairment charge is recorded to the extent the fair value of our investment is less than the carrying amount and the decline in value is determined to be other than a temporary decline. We had no impairment charges related to our investments in unconsolidated entities for the nine months ended September 30, 2016 and 2015 . In evaluating our investments for impairment, management makes several estimates and assumptions, including, but not limited to, the projected date of disposition (the intended hold period) and sales price for each property, the estimated future cash flows of each property during our estimated ownership period, and for unconsolidated investments, the estimated future distributions from the investment. A change in these estimates and assumptions could result in understating or overstating the carrying amount of our investments which could be material to our financial statements. We undergo continuous evaluations of property level performance, credit market conditions, and financing options. If our assumptions regarding the cash flows expected to result from the use and eventual disposition of our properties decrease or our expected hold periods decrease, we may incur future impairment charges on our real estate-related assets. In addition, we may incur impairment charges on assets classified as held for sale in the future if the carrying amount of the asset upon classification as held for sale exceeds the estimated fair value, less costs to sell.
Accounts Receivable, net	Our allowance for doubtful accounts is an estimate based on management’s evaluation of accounts where it has determined that a tenant may not meet its financial obligations. In these situations, management uses its judgment, based on the facts and circumstances, and records a reserve for that tenant against amounts due to reduce the receivable to an amount it believes is collectible. These reserves are reevaluated and adjusted as additional information becomes available.
Investments in Unconsolidated Entities	Investments in Unconsolidated Entities Investments in unconsolidated entities consist of our noncontrolling interests in properties. We account for these investments using the equity method of accounting in accordance with GAAP. We use the equity method of accounting when we have significant influence, but not control, of the decision-making involved in the operating and financial decisions of these investments and thereby have some responsibility to create a return on our investment. The equity method of accounting requires these investments to be initially recorded at cost and subsequently increased (decreased) for our share of net income (loss), including eliminations for our share of inter-company transactions, and increased (decreased) for contributions (distributions). To the extent that we contribute assets to an unconsolidated entity, our investment in the unconsolidated entity is recorded at our cost basis in the assets that were contributed to the entity. To the extent that our cost basis is different than the basis reflected at the entity level, the basis difference is generally amortized over the life of the related asset and included in our share of equity in operations of investments. For unconsolidated investments that have properties under development, we capitalize interest expense to our investment basis using our weighted average interest rate of consolidated debt. Capitalization begins when we are engaged in the activities necessary to get the property ready for its intended use. We cease capitalization when the development is completed and ready for its intended use or if the intended use changes such that capitalization is no longer appropriate.
Other Intangible Assets, net	Other Intangible Assets, net Other intangible assets consist of below-market ground leases on properties where a third party owns and has leased the underlying land to us.
Revenue Recognition	Revenue Recognition We recognize rental income generated from all leases of consolidated real estate assets on a straight-line basis over the terms of the respective leases, including the effect of rent holidays, if any. Each of the amounts presented below include rental revenue amounts recognized in discontinued operations. The total net increase to rental revenue due to straight-line rent adjustments for the three months ended September 30, 2016 and 2015 , was approximately $0.3 million and $2.1 million , respectively. The total net increase to rental revenue due to straight-line rent adjustments for the nine months ended September 30, 2016 and 2015 , was approximately $4.1 million and $9.1 million , respectively. When a tenant exceeds its tenant improvement allowance, this amount is reimbursed to us and recorded as a deferred rent liability, which is recognized as rental revenue over the life of the lease. The total net increase to rental revenue due to this deferred rent for the three months ended September 30, 2016 and 2015 , was approximately $0.6 million and $0.7 million , respectively. The total net increase to rental revenue due to this deferred rent for the nine months ended September 30, 2016 and 2015 , was approximately $2.5 million and $1.8 million , respectively. Our rental revenue also includes amortization of acquired above- and below-market leases. The total net increase to rental revenue due to the amortization of acquired above- and below-market leases for the three months ended September 30, 2016 and 2015 , was approximately $0.9 million and $2.1 million , respectively. The total net increase to rental revenue due to the amortization of acquired above- and below-market leases for the nine months ended September 30, 2016 and 2015 , was approximately $3.4 million and $4.6 million , respectively. Revenues relating to lease termination fees are recognized on a straight-line basis amortized from the time that a tenant’s right to occupy the leased space is modified through the end of the revised lease term.

Basis of Presentation and Sig21

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Real Estate [Abstract]
Schedule of cost basis, accumulated depreciation and amortization related to entity's consolidated real estate properties and related lease intangibles	As of September 30, 2016 , and December 31, 2015 , the cost basis and accumulated depreciation and amortization related to our consolidated depreciable real estate properties and related lease intangibles were as follows (in thousands): Lease Intangibles Assets Liabilities Acquired Above-Market Leases Acquired Below-Market Leases Buildings and Improvements Other Lease Intangibles as of September 30, 2016 Cost $ 1,564,994 $ 129,330 $ 5,005 $ (42,701 ) Less: accumulated depreciation and amortization (516,800 ) (67,411 ) (3,988 ) 34,845 Net $ 1,048,194 $ 61,919 $ 1,017 $ (7,856 ) Lease Intangibles Assets Liabilities Acquired Above-Market Leases Acquired Below-Market Leases Buildings and Improvements Other Lease Intangibles as of December 31, 2015 Cost $ 1,914,664 $ 164,636 $ 5,383 $ (52,744 ) Less: accumulated depreciation and amortization (566,464 ) (82,476 ) (3,995 ) 40,810 Net $ 1,348,200 $ 82,160 $ 1,388 $ (11,934 )
Anticipated amortization associated with the acquired lease intangibles for each of the five years	Anticipated amortization associated with acquired lease intangibles for each of the following five years is as follows (in thousands): October 2016 - December 2016 $ 751 2017 $ 1,813 2018 $ 995 2019 $ 1,002 2020 $ 1,092
Accounts Receivable [Abstract]
Summary of net accounts receivable	The following is a summary of our accounts receivable as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, December 31, Straight-line rental revenue receivable $ 64,385 $ 73,420 Tenant receivables 5,130 5,972 Non-tenant receivables 581 1,549 Allowance for doubtful accounts (2,996 ) (4,713 ) Total $ 67,100 $ 76,228
Other Intangible Assets, Net [Abstract]
Schedule of other intangible assets	As of September 30, 2016 , and December 31, 2015 , the cost basis and accumulated amortization related to our consolidated other intangible assets were as follows (in thousands): September 30, December 31, Cost $ 11,277 $ 11,177 Less: accumulated amortization (1,389 ) (1,091 ) Net $ 9,888 $ 10,086

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities measured at fair value on a recurring basis	The following table sets forth our financial liabilities measured at fair value on a recurring basis, which equals book value, by level within the fair value hierarchy as of September 30, 2016 , and December 31, 2015 (in thousands). Basis of Fair Value Measurements Quoted Prices In Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Description September 30, 2016 Derivative financial instruments: Liabilities $ (17,082 ) $ — $ (17,082 ) $ — December 31, 2015 Derivative financial instruments: Liabilities $ (3,866 ) $ — $ (3,866 ) $ —
Schedule of assets measured at fair value and impaired during the periods presented	The following table summarizes those assets which were measured at fair value and impaired during 2016 and 2015 (in thousands): Basis of Fair Value Measurements Description Fair Value of Assets at Impairment Quoted Prices In Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses for the nine months ended September 30, 2016 Real estate held for sale (1) $ 9,309 $ — $ 4,570 $ 4,739 $ (8,977 ) for the year ended December 31, 2015 Real estate $ 11,489 $ — $ 11,489 $ — $ (132 ) _______________ (1) Fair value of real estate held for sale includes selling costs.
Summary of quantitative information about the unobservable inputs of Level 3 real estate recorded at fair value	The following table sets forth quantitative information about the unobservable inputs (Level 3) of our real estate that was recorded at fair value as of the date of its impairment in 2016 (in thousands): Fair Value of Assets at Impairment Valuation Technique Unobservable Input Value Real estate on which impairment losses were recognized $ 4,739 Discounted Cash Flow Discount rate 12.0% Terminal capitalization rate 9.5%
Schedule of carrying amounts and related estimated fair value of notes payable	Carrying amounts of our notes payable and the related estimated fair value as of September 30, 2016 , and December 31, 2015 , are as follows (in thousands): September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Notes payable $ 845,758 $ 849,796 $ 1,080,425 $ 1,084,625 Less: unamortized debt issuance costs (7,838 ) (8,854 ) Notes payable, net $ 837,920 $ 1,071,571

Real Estate Activities (Tables)

Real Estate Activities (Tables)	9 Months Ended
	Sep. 30, 2016
Real Estate Activities [Abstract]
Schedule of assets and liabilities associated with real estate held for sale	The major classes of assets and obligations associated with real estate held for sale as of September 30, 2016, are as follows (in thousands): September 30, 2016 Land $ 6,893 Buildings and improvements, net 27,995 Accounts receivable and other assets, net 781 Lease intangibles, net 1,357 Assets associated with real estate held for sale $ 37,026 Acquired below-market leases, net $ 50 Accrued liabilities 794 Other liabilities 550 Obligations associated with real estate held for sale $ 1,394
Summary of results of operations for properties that have been classified as discontinued operations	The table below summarizes the results of operations for properties that have been classified as discontinued operations in the accompanying condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 (in thousands). This includes two properties that were held for sale at December 31, 2014 and sold in 2015. Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Rental revenue $ 27 $ 4,593 Expenses Property operating expenses 6 1,729 Interest expense — 720 Real estate taxes — 633 Property management fees — 121 Total expenses 6 3,203 Income from discontinued operations 21 1,390 Gain on sale of discontinued operations 403 15,086 Discontinued operations $ 424 $ 16,476

Investments in Unconsolidated24

Investments in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Summary of the entity's investments in unconsolidated entities	The following is a summary of our investments in unconsolidated entities as of September 30, 2016 , and December 31, 2015 (dollar amounts in thousands): Ownership Interest Investment Balance Entity Name Property September 30, December 31, 2015 September 30, December 31, 1301 Chestnut Associates, L.P. (1) Wanamaker Building 60.00 % 60.00 % $ 44,229 $ 42,898 Domain Junction LLC (2) (3) Domain 2 & 7 49.84 % 49.84 % 10,163 26,588 Domain Junction 8 Venture LLC (2) (3) Domain 8 50.00 % 50.00 % 17,921 14,193 COLDC 54 Holdings, LLC (3) Colorado Building 10.00 % 10.00 % 770 949 GSTDC 72 Holdings, LLC (3) 1325 G Street 10.00 % 10.00 % 3,871 4,370 Total $ 76,954 $ 88,998 _________________ (1) All major decisions for this entity require a vote of 70% (and in some instances 75% ) of the ownership group. (2) All major decisions for this entity are made by the other owner. (3) We have evaluated our investments in unconsolidated entities in order to determine if they are VIEs. Based on our assessment, we have identified each of these entities as a VIE, but we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the economic performance of these entities. For these VIEs in which we are not deemed to be the primary beneficiary, we continue to account for them using the equity method. The maximum amount of exposure to loss with respect to these VIEs is the carrying amount of our investment. Additionally, we are required to fund up to $0.3 million in additional capital contributions to the Domain Junction 8 Venture LLC for the development of Domain 8. At September 30, 2016 , these VIEs have total assets of approximately $342.6 million and total liabilities of approximately $250.1 million , as outlined in the summarized balance sheets presented below. The summarized balance sheets of our unconsolidated entities as of as of September 30, 2016 , and December 31, 2015 , are as follows (in thousands): as of September 30, 2016 Total Wanamaker Other (50% or less owned entities) Real estate, net $ 407,132 $ 126,076 $ 281,056 Real estate intangibles, net 50,413 10,776 39,637 Cash, cash equivalents and restricted cash 22,728 12,551 10,177 Other assets 21,978 10,227 11,751 Total assets $ 502,251 $ 159,630 $ 342,621 Notes payable, net $ 298,974 $ 70,557 $ 228,417 Accounts payable 12,855 1,007 11,848 Other liabilities 15,087 5,266 9,821 Equity 175,335 82,800 92,535 Total liabilities and equity $ 502,251 $ 159,630 $ 342,621 Company’s share of equity $ 69,740 $ 49,680 $ 20,060 Basis differences (1) 7,214 (5,451 ) 12,665 Carrying value of the Company’s investment in unconsolidated entities $ 76,954 $ 44,229 $ 32,725 ____________________ (1) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differences occur from impairment of investments and upon the transfer of assets that were previously owned by us into a joint venture. In addition, certain acquisition, transaction and other costs, including capitalized interest, may not be reflected in the net assets at the joint venture level. as of December 31, 2015 Total Wanamaker Other (50% or less owned entities) Real estate, net $ 379,646 $ 128,358 $ 251,288 Real estate intangibles, net 54,470 12,087 42,383 Cash, cash equivalents and restricted cash 23,814 12,819 10,995 Other assets 16,796 8,851 7,945 Total assets $ 474,726 $ 162,115 $ 312,611 Notes payable, net $ 246,500 $ 75,124 $ 171,376 Accounts payable 8,187 21 8,166 Other liabilities 19,144 6,386 12,758 Equity 200,895 80,584 120,311 Total liabilities and equity $ 474,726 $ 162,115 $ 312,611 Company’s share of equity $ 81,982 $ 48,350 $ 33,632 Basis differences (1) 7,016 (5,452 ) 12,468 Carrying value of the Company’s investment in unconsolidated entities $ 88,998 $ 42,898 $ 46,100 ________________ (1) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differences occur from impairment of investments and upon the transfer of assets that were previously owned by us into a joint venture. In addition, certain acquisition, transaction and other costs, including capitalized interest, may not be reflected in the net assets at the joint venture level. Our equity in operations of investments represents our proportionate share of the combined earnings and losses of our investments for the period of our ownership. The summarized statements of operations of our unconsolidated entities for the three and nine months ended September 30, 2016 and 2015, are as follows (in thousands): Three months ended September 30, 2016 Total Wanamaker Other Revenue $ 15,010 $ 6,766 $ 8,244 Income (loss) from continuing operations $ 665 $ 837 $ (172 ) Gain on sale of real estate 1,000 — 1,000 Net income $ 1,665 $ 837 $ 828 Company’s share of income (loss) from continuing operations $ 587 $ 502 $ 85 Company’s share of gain on sale of real estate 60 — 60 Company’s share of net income $ 647 $ 502 $ 145 Basis differences and elimination of inter-entity fees (1 ) 128 (129 ) Equity in operations of investments $ 646 $ 630 $ 16 ________________ (1) Includes combined earnings and losses for Domain 2&7, Domain 8, Colorado Building, 1325 G Street, and recognition of a previously deferred gain on the sale of Paces West, a property we sold on November 30, 2015. Three months ended September 30, 2015 Total Wanamaker Other Revenue $ 16,558 $ 6,416 $ 10,142 Income (loss) from continuing operations $ (6,647 ) $ 526 $ (7,173 ) Net income (loss) $ (6,647 ) $ 526 $ (7,173 ) Company’s share of net income (loss) $ (298 ) $ 315 $ (613 ) Basis differences and elimination of inter-entity fees 139 124 15 Equity in operations of investments $ (159 ) $ 439 $ (598 ) _______________ (1) Includes combined earnings and losses for Domain 2 & 7, Domain 8, Colorado Building, 1325 G Street, and Paces West, a property in which we owned a 10% interest during the three months ended September 30, 2015 . Paces West was sold on November 30, 2015. Domain 2 & 7 and Domain 8 were included as unconsolidated entities beginning upon their acquisition on July 23, 2015. Nine months ended September 30, 2016 Total Wanamaker Other Revenue $ 43,469 $ 19,913 $ 23,556 Income (loss) from continuing operations $ 1,820 $ 2,716 $ (896 ) Gain on sale of real estate 1,000 — 1,000 Net income $ 2,820 $ 2,716 $ 104 Company’s share of income (loss) from continuing operations $ 1,831 $ 1,630 $ 201 Company’s share of gain on sale of real estate 60 — 60 Company’s share of net income $ 1,891 $ 1,630 $ 261 Basis differences and elimination of inter-entity fees (7 ) 383 (390 ) Equity in operations of investments $ 1,884 $ 2,013 $ (129 ) _____________________ (1) Includes combined earnings and losses for Domain 2&7, Domain 8, Colorado Building, and 1325 G Street, and recognition of a previously deferred gain on the sale of Paces West, a property we sold on November 30, 2015. Nine months ended September 30, 2015 Total Wanamaker Other Revenue $ 36,247 $ 19,370 $ 16,877 Income (loss) from continuing operations $ (10,522 ) $ 1,437 $ (11,959 ) Net income (loss) $ (10,522 ) $ 1,437 $ (11,959 ) Company’s share of net income (loss) $ (230 ) $ 862 $ (1,092 ) Basis differences and elimination of inter-entity fees 383 365 18 Equity in operations of investments $ 153 $ 1,227 $ (1,074 ) _______________ (1) Includes combined earnings and losses for Domain 2 & 7, Domain 8, Colorado Building, 1325 G Street, and Paces West, a property in which we owned a 10% interest during the nine months ended September 30, 2016 . Paces West was sold on November 30, 2015. Colorado Building and 1325 G Street were included as unconsolidated entities beginning on June 30, 2015. Domain 2 & 7 and Domain 8 were included as unconsolidated entities upon their acquisition on July 23, 2015.

Derivative Instruments and He25

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following table summarizes the notional values of our derivative financial instruments (in thousands) as of September 30, 2016 . The notional values provide an indication of the extent of our involvement in these instruments at September 30, 2016 , but do not represent exposure to credit, interest rate, or market risks. Type/Description Notional Value Index Strike Rate Effective Date Maturity Date Interest rate swap - cash flow hedge $ 125,000 one-month LIBOR 1.6775 % 12/31/14 10/31/19 Interest rate swap - cash flow hedge $ 125,000 one-month LIBOR 1.6935 % 04/30/15 10/31/19 Interest rate swap - cash flow hedge $ 125,000 one-month LIBOR 1.7615 % 06/30/15 05/31/22 Interest rate swap - cash flow hedge $ 150,000 one-month LIBOR 1.7695 % 06/30/15 05/31/22
Schedule of fair value of derivative financial instruments included in other liabilities	The table below presents the fair value of our derivative financial instruments, included in “other liabilities” on our condensed consolidated balance sheets, as of September 30, 2016 , and December 31, 2015 (in thousands): Derivatives designated as hedging instruments: Derivative Liabilities September 30, December 31, Interest rate swaps $ (17,082 ) $ (3,866 )
Schedule of effect of the change in fair value of derivative financial instruments in statement of operations and comprehensive income (loss)	The tables below present the effect of the change in fair value of derivative financial instruments in our condensed consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 (in thousands): Derivatives in Cash Flow Hedging Relationship Gain (loss) recognized in OCI on derivatives (effective portion) Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Interest rate swaps $ 2,602 $ (10,966 ) $ (12,810 ) $ (9,376 ) Amount reclassified from OCI into income (effective portion) Three Months Ended Nine Months Ended Location September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Interest expense (1) $ 1,654 $ 2,061 $ 5,083 $ 3,341 ______________ (1) Increases in fair value as a result of accrued interest associated with our swap transactions are recorded in accumulated OCI and subsequently reclassified into income. Such amounts are shown net in the statements of changes in equity and offset dollar for dollar. Amount recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Three Months Ended Nine Months Ended Location September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Interest expense (1) $ (1,534 ) $ — $ 407 $ — _____________ (1) Represents the portion of the change in fair value of our interest rate swaps attributable to the mismatch between an interest rate floor on our hedged debt and no floor on the index rate in our interest rate swaps which causes hedge ineffectiveness.

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt maturities	The following table provides information regarding the timing of principal payments of our notes payable, net as of September 30, 2016 (in thousands): Principal payments due in: October 2016 - December 2016 $ 49,104 2017 130,021 2018 1,622 2019 301,723 2020 1,814 Thereafter 361,474 Less: unamortized debt issuance costs (1) (7,838 ) Notes payable, net $ 837,920 ________________ (1) Excludes approximately $2.7 million of unamortized debt issuance costs associated with the revolving line of credit because these costs are presented as an asset on our condensed consolidated balance sheets.

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Restricted Stock Units	The following is a summary of the number of outstanding RSUs held by our independent directors as of September 30, 2016 and 2015 : September 30, 2016 September 30, 2015 Units Weighted Average Price per unit Units Weighted Average Price per unit Outstanding at the beginning of the year 28,705 $ 18.29 13,841 $ 24.69 Issued 18,275 $ 15.05 — $ — Forfeited — $ — (2 ) $ 24.82 Converted (7,725 ) $ 19.96 (3,731 ) $ 24.57 Outstanding at the end of the period (1) 39,255 $ 16.45 10,108 $ 24.73 _____________ (1) As of September 30, 2016 , 6,046 RSUs held by our independent directors are vested.
Summary of Restricted Stock Valuation Assumptions	Expense is measured at the grant date, based on the estimated fair value of the award ( $19.18 per unit) as determined by a Monte Carlo simulation based model using the following assumptions: Assumption Value Expected volatility 24% Risk-free interest rate 1.15% Expected term 35 months Expected dividend yield 4.5%
Summary of the Number of Shares of Restricted Stock Outstanding	The following is a summary of the number of shares of restricted stock outstanding as of September 30, 2016 and 2015 : September 30, 2016 September 30, 2015 Shares Weighted Average Price per share Shares Weighted Average Price per share Outstanding at the beginning of the year 281,905 $ 22.46 118,563 $ 24.73 Issued 119,523 $ 15.19 106,811 $ 26.88 Forfeiture (8,406 ) $ 19.98 (2,203 ) $ 25.64 Restrictions lapsed (59,673 ) $ 25.64 (33,726 ) $ 24.65 Outstanding at the end of the period 333,349 $ 19.34 189,445 $ 25.95
Schedule of Distributions Declared	The following table reflects the distributions declared for our common stock, Series A Convertible Preferred Stock, and noncontrolling interests (OP units and vested restricted stock units) during the nine months ended September 30, 2016 and for the year ended December 31, 2015 (in thousands). Common Stockholders Preferred Stockholders Noncontrolling Interests Total 2016 1st Quarter $ 8,600 $ 8,594 $ — $ 6 2nd Quarter 8,601 8,594 — 7 3rd Quarter 8,602 8,595 — 7 Total $ 25,803 $ 25,783 $ — $ 20 2015 1st Quarter $ — $ — $ — $ — 2nd Quarter 9,028 9,011 2 15 3rd Quarter 8,556 8,539 2 15 4th Quarter 8,596 8,576 2 18 Total $ 26,180 $ 26,126 $ 6 $ 48

Supplemental Cash Flow Inform28

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Schedule of supplemental cash flow information	Supplemental cash flow information is summarized below for the nine months ended September 30, 2016 and 2015 (in thousands): Nine Months Ended September 30, 2016 September 30, 2015 Interest paid, net of amounts capitalized $ 29,904 $ 42,764 Income taxes paid $ 2,001 $ 977 Non-cash investing activities: Property and equipment additions in accounts payable and accrued liabilities $ 10,698 $ 11,382 Amortization of deferred financing fees in building and improvements, net $ — $ 240 Contribution of land to non wholly-owned entity $ — $ 14,002 Liabilities assumed through the purchase of real estate $ — $ 1,800 Non-cash financing activities: Cancellation of Series A Convertible Preferred Stock $ 2,700 $ — Mortgage notes assumed by purchaser $ — $ 47,074 Dilution of Series A Convertible Preferred Stock $ — $ 1,926 Financing costs in accounts payable and accrued liabilities $ — $ 33 Unrealized loss on interest rate derivatives $ 12,810 $ 9,376 Accrual for distributions declared $ 8,602 $ 8,556 Contributions from noncontrolling interests $ — $ 1,000

Business (Details)

Business (Details)	Sep. 30, 2016propertymarket
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating office properties	30
Number of non-operating properties	1
Number of development properties	1
Number of markets in which the entity owns interests in properties | market	13

Basis of Presentation and Sig30

Basis of Presentation and Significant Accounting Policies (Reclassification) (Details) - Scenario, previously reported - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts payable		$ 0.8
Accrued liabilities		$ 70.8
Change in accounts payable	$ (0.9)
Change in accrued liabilities	$ (8.8)

Basis of Presentation and Sig31

Basis of Presentation and Significant Accounting Policies (Real Estate) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real estate properties
Net	$ 1,048,194	$ 1,348,200
Intangible assets
Net	62,936	83,548
Intangible liabilities
Net	(7,856)	(11,934)
Other Lease Intangibles
Intangible assets
Cost	129,330	164,636
Less: accumulated depreciation and amortization	(67,411)	(82,476)
Net	61,919	82,160
Acquired Above-Market Leases
Intangible assets
Cost	5,005	5,383
Less: accumulated depreciation and amortization	(3,988)	(3,995)
Net	1,017	1,388
Acquired Below-Market Leases
Intangible liabilities
Cost	(42,701)	(52,744)
Less: accumulated depreciation and amortization	34,845	40,810
Net	(7,856)	(11,934)
Anticipated amortization associated with acquired lease intangibles
Anticipated Amortization Associated with the Acquired Lease Intangibles for Each of the Following Five Years
October 2016 - December 2016	751
2,017	1,813
2,018	995
2,019	1,002
2,020	1,092
Buildings and Improvements
Real estate properties
Cost	1,564,994	1,914,664
Less: accumulated depreciation and amortization	(516,800)	(566,464)
Net	$ 1,048,194	$ 1,348,200

Basis of Presentation and Sig32

Basis of Presentation and Significant Accounting Policies (Impairment of Real Estate Related Assets) (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Impaired Long-Lived Assets Held and Used [Line Items]
Non-cash impairment charges	$ 8,977,000	$ 132,000	$ 100,000
Unconsolidated entities
Impaired Long-Lived Assets Held and Used [Line Items]
Non-cash impairment charges	$ 0	$ 0

Basis of Presentation and Sig33

Basis of Presentation and Significant Accounting Policies (Accounts Receivable, net) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts Receivable, Net [Abstract]
Straight-line rental revenue receivable	$ 64,385	$ 73,420
Tenant receivables	5,130	5,972
Non-tenant receivables	581	1,549
Allowance for doubtful accounts	(2,996)	(4,713)
Total	$ 67,100	$ 76,228

Basis of Presentation and Sig34

Basis of Presentation and Significant Accounts Policies (Investments in Unconsolidated Entities) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Investments in Unconsolidated Entities [Line Items]
Interest costs capitalized	$ 200,000	$ 900,000
Unconsolidated Entity
Investments in Unconsolidated Entities [Line Items]
Interest costs capitalized	$ 500,000	$ 0

Basis of Presentation and Sig35

Basis of Presentation and Significant Accounting Policies (Other Intangible Assets, net) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Intangible Assets, Net [Abstract]
Cost	$ 11,277	$ 11,177
Less: accumulated amortization	(1,389)	(1,091)
Net	$ 9,888	$ 10,086

Basis of Presentation and Sig36

Basis of Presentation and Significant Accounting Policies (Revenue Recognition) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue Recognition [Abstract]
Net increase in rental revenues due to straight-line rent adjustments	$ 300	$ 2,100	$ 4,100	$ 9,100
Deferred Revenue, Revenue Recognized	600	700	2,500	1,800
Net increase in rental revenue due to amortization of above- and below-market leases	900	2,100	3,399	4,586
Lease termination fee revenue	$ 300	$ 2,000	$ 1,600	$ 2,700

New Accounting Pronouncements (

New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Deferred financing fees, net	$ 2,698	$ 3,111
Revolving credit facility
Debt Instrument [Line Items]
Deferred financing fees, net		3,100
Deferred financing fees, net | Accounting Standard Update 2015-03
Debt Instrument [Line Items]
Net deferred financing fees		8,900
Notes payable | Accounting Standard Update 2015-03
Debt Instrument [Line Items]
Net deferred financing fees		$ (8,900)

Fair Value Measurements (Financ

Fair Value Measurements (Financial Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Quoted Prices In Active Markets for Identical Items (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	$ 0	$ 0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	(17,082)	(3,866)
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	0	0
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	$ (17,082)	$ (3,866)

Fair Value Measurements (Assets

Fair Value Measurements (Assets Measured at Fair Value and Impaired) (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value Measurements
Asset impairment gains (losses)	$ (8,977)	$ (132)	$ (100)
Real estate
Fair Value Measurements
Impairment of Real Estate	(8,977)		(132)
Real estate | Fair Value
Fair Value Measurements
Assets, fair value disclosure, nonrecurring	9,309		11,489
Real estate | Quoted Prices In Active Markets for Identical Items (Level 1) | Fair Value
Fair Value Measurements
Assets, fair value disclosure, nonrecurring	0		0
Real estate | Significant Other Observable Inputs (Level 2) | Fair Value
Fair Value Measurements
Assets, fair value disclosure, nonrecurring	4,570		11,489
Real estate | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring
Fair Value Measurements
Fair Value of Assets at Impairment	4,739
Real estate | Significant Unobservable Inputs (Level 3) | Fair Value
Fair Value Measurements
Assets, fair value disclosure, nonrecurring	$ 4,739		$ 0
Discounted cash flow technique | Real estate | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring
Fair Value Measurements
Discount rate	12.00%
Terminal capitalization rate	9.50%

Fair Value Measurement (Financi

Fair Value Measurement (Financial Instruments not Reported at Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable, net	$ 837,920	$ 1,071,571
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	845,758	1,080,425
Less: unamortized debt issuance costs	(7,838)	(8,854)
Notes payable, net	837,920	1,071,571
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 849,796	$ 1,084,625

Real Estate Activities (Sales o

Real Estate Activities (Sales of Real Estate Reported in Continuing Operations) (Details) ft² in Thousands	Sep. 30, 2016USD ($)ft²	Jun. 17, 2016USD ($)ft²	Mar. 01, 2016USD ($)ft²	Sep. 30, 2016USD ($)ft²	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)ft²	Sep. 30, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale						$ 290,012,000	$ 414,628,000
Not discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contribution to net income (loss)				$ 200,000	$ (2,300,000)	(700,000)	$ (5,100,000)
Not discontinued operations | Lawson Commons
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract sale price			$ 68,400,000
Proceeds from sale			$ 60,900,000
Rentable square feet | ft²			436
Not discontinued operations | FOUR40
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract sale price		$ 191,000,000
Proceeds from sale		$ 189,000,000
Rentable square feet | ft²		1,000
Not discontinued operations | Hurstbourne Business Center
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract sale price	$ 41,000,000			$ 41,000,000		$ 41,000,000
Proceeds from sale	$ 39,800,000
Rentable square feet | ft²	418			418		418
Maximum | Not discontinued operations | FOUR40
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent consideration based upon future performance of the property		$ 12,500,000

Real Estate Activities Real Est

Real Estate Activities Real Estate Activities (Real Estate Held for Sale) (Details) $ in Thousands	Sep. 30, 2016USD ($)property	Dec. 31, 2015USD ($)property
Real Estate Properties [Line Items]
Number of operating office properties | property	30
Long lived assets held for sale [Abstract]
Land	$ 143,581	$ 179,989
Buildings and improvements, net	1,048,194	1,348,200
Lease intangibles, net	62,936	83,548
Assets associated with real estate held for sale	37,026	0
Acquired below-market leases, net	7,856	11,934
Obligations associated with real estate held for sale	$ 1,394	$ 0
Assets held-for-sale
Real Estate Properties [Line Items]
Number of operating office properties | property	5	0
Long lived assets held for sale [Abstract]
Land	$ 6,893
Buildings and improvements, net	27,995
Accounts receivable and other assets, net	781
Lease intangibles, net	1,357
Assets associated with real estate held for sale	37,026
Acquired below-market leases, net	50
Accrued liabilities	794
Other liabilities	550
Obligations associated with real estate held for sale	1,394
801 Thompson Rockville Md | Assets held-for-sale
Real Estate Properties [Line Items]
Contract sale price	$ 4,900

Real Estate Activities (Sales43

Real Estate Activities (Sales of Real Estate Reported in Discontinued Operations (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)property	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)property	Sep. 30, 2015USD ($)	Dec. 31, 2015property	Dec. 31, 2014property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties | property	30		30
Income from discontinued operations	$ 0	$ 21	$ 0	$ 1,390
Gain on sale of discontinued operations	0	403	0	15,086
Discontinued operations	$ 0	424	$ 0	16,476
Discontinued operations, disposed of by sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold and classified as discontinued operations | property			0		2
Discontinued operations, held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties | property						2
Discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rental revenue		27		4,593
Property operating expenses		6		1,729
Interest expense		0		720
Real estate taxes		0		633
Property management fees		0		121
Total expenses		6		3,203
Income from discontinued operations		21		1,390
Gain on sale of discontinued operations		403		15,086
Discontinued operations		$ 424		$ 16,476

Investments in Unconsolidated44

Investments in Unconsolidated Entities (Summary of Investments) (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Investments in Unconsolidated Entities [Line Items]
Investment Balance	$ 76,954,000	$ 88,998,000
Total assets	$ 502,251,000	$ 474,726,000
Wanamaker Building
Investments in Unconsolidated Entities [Line Items]
Ownership Interest	60.00%	60.00%
Investment Balance	$ 44,229,000	$ 42,898,000
Total assets	$ 159,630,000	$ 162,115,000
Domain 2 & 7
Investments in Unconsolidated Entities [Line Items]
Ownership Interest	49.84%	49.84%
Investment Balance	$ 10,163,000	$ 26,588,000
Domain 8
Investments in Unconsolidated Entities [Line Items]
Ownership Interest	50.00%	50.00%
Investment Balance	$ 17,921,000	$ 14,193,000
Colorado Building
Investments in Unconsolidated Entities [Line Items]
Ownership Interest	10.00%	10.00%
Investment Balance	$ 770,000	$ 949,000
1325 G Street
Investments in Unconsolidated Entities [Line Items]
Ownership Interest	10.00%	10.00%
Investment Balance	$ 3,871,000	$ 4,370,000
Minimum
Investments in Unconsolidated Entities [Line Items]
Percentage of ownership vote needed for major decision	70.00%
Maximum
Investments in Unconsolidated Entities [Line Items]
Percentage of ownership vote needed for major decision	75.00%
Variable Interest Entity, not primary beneficiary
Investments in Unconsolidated Entities [Line Items]
Maximum amount due for development of Domain 8	$ 300,000
Total assets	342,600,000
Total liabilities	$ 250,100,000

Investments in Unconsolidated45

Investments in Unconsolidated Entities (Summarized Balance Sheet) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Real estate, net	$ 407,132	$ 379,646
Real estate intangibles, net	50,413	54,470
Cash, cash equivalents and restricted cash	22,728	23,814
Other assets	21,978	16,796
Total assets	502,251	474,726
Liabilities and Equity
Notes payable, net	298,974	246,500
Accounts payable	12,855	8,187
Other liabilities	15,087	19,144
Equity	175,335	200,895
Total liabilities and equity	502,251	474,726
Company’s share of equity	69,740	81,982
Basis differences	7,214	7,016
Carrying value of the Company’s investment in unconsolidated entities	76,954	88,998
Wanamaker Building
Assets
Real estate, net	126,076	128,358
Real estate intangibles, net	10,776	12,087
Cash, cash equivalents and restricted cash	12,551	12,819
Other assets	10,227	8,851
Total assets	159,630	162,115
Liabilities and Equity
Notes payable, net	70,557	75,124
Accounts payable	1,007	21
Other liabilities	5,266	6,386
Equity	82,800	80,584
Total liabilities and equity	159,630	162,115
Company’s share of equity	49,680	48,350
Basis differences	(5,451)	(5,452)
Carrying value of the Company’s investment in unconsolidated entities	44,229	42,898
Other (50% or less owned entities)
Assets
Real estate, net	281,056	251,288
Real estate intangibles, net	39,637	42,383
Cash, cash equivalents and restricted cash	10,177	10,995
Other assets	11,751	7,945
Total assets	342,621	312,611
Liabilities and Equity
Notes payable, net	228,417	171,376
Accounts payable	11,848	8,166
Other liabilities	9,821	12,758
Equity	92,535	120,311
Total liabilities and equity	342,621	312,611
Company’s share of equity	20,060	33,632
Basis differences	12,665	12,468
Carrying value of the Company’s investment in unconsolidated entities	$ 32,725	$ 46,100

Investments in Unconsolidated46

Investments in Unconsolidated Entities (Summarized Income Statement) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenue	$ 15,010	$ 16,558	$ 43,469	$ 36,247
Income (loss) from continuing operations	665	(6,647)	1,820	(10,522)
Gain on sale of real estate	1,000		1,000
Net income	1,665	(6,647)	2,820	(10,522)
Company’s share of income (loss) from continuing operations	587		1,831
Company’s share of gain on sale of real estate	60		60
Company’s share of net income (loss)	647	(298)	1,891	(230)
Basis differences and elimination of inter-entity fees	(1)	139	(7)	383
Equity in operations of investments	646	(159)	1,884	153
Wanamaker Building
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenue	6,766	6,416	19,913	19,370
Income (loss) from continuing operations	837	526	2,716	1,437
Gain on sale of real estate	0		0
Net income	837	526	2,716	1,437
Company’s share of income (loss) from continuing operations	502		1,630
Company’s share of gain on sale of real estate	0		0
Company’s share of net income (loss)	502	315	1,630	862
Basis differences and elimination of inter-entity fees	128	124	383	365
Equity in operations of investments	$ 630	439	$ 2,013	1,227
Ownership Interest	60.00%		60.00%		60.00%
Other (50% or less owned entities)
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenue	$ 8,244	10,142	$ 23,556	16,877
Income (loss) from continuing operations	(172)	(7,173)	(896)	(11,959)
Gain on sale of real estate	1,000		1,000
Net income	828	(7,173)	104	(11,959)
Company’s share of income (loss) from continuing operations	85		201
Company’s share of gain on sale of real estate	60		60
Company’s share of net income (loss)	145	(613)	261	(1,092)
Basis differences and elimination of inter-entity fees	(129)	15	(390)	18
Equity in operations of investments	$ 16	$ (598)	$ (129)	$ (1,074)
Paces West Atlanta Ga
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Ownership Interest		10.00%		10.00%

Real Estate Under Development (

Real Estate Under Development (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Real Estate Under Development [Abstract]
Development costs capitalized	$ 7.8	$ 6.3
Interest costs capitalized	$ 0.2	$ 0.9

Derivative Instruments and He48

Derivative Instruments and Hedging Activities (Notional Values of Derivative Financial Instruments) (Details)	Sep. 30, 2016USD ($)
Derivative [Line Items]
Notional Value	$ 525,000,000
Swap Number One
Derivative [Line Items]
Notional Value	$ 125,000,000
Strike Rate	1.6775%
Swap Number Two
Derivative [Line Items]
Notional Value	$ 125,000,000
Strike Rate	1.6935%
Swap Number Three
Derivative [Line Items]
Notional Value	$ 125,000,000
Strike Rate	1.7615%
Swap Number Four
Derivative [Line Items]
Notional Value	$ 150,000,000
Strike Rate	1.7695%

Derivative Instruments and He49

Derivative Instruments and Hedging Activities (Fair Value of Derivative Financial Instruments Included in Other Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Designated as hedging instrument | Interest rate swaps
Derivative [Line Items]
Derivative Liabilities	$ (17,082)	$ (3,866)

Derivative Instruments and He50

Derivative Instruments and Hedging Activities (Derivatives in Cash Flow Hedging Relationship) (Details) - Cash flow hedging - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Loss recognized in OCI on derivative (effective portion)	$ 2,602	$ (10,966)	$ (12,810)	$ (9,376)
Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from OCI into income (effective portion)	1,654	2,061	5,083	3,341
Amount recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	$ (1,534)	$ 0	$ 407	$ 0

Derivative Instruments and He51

Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Debt Instrument, by Type [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net	$ 5.5
Derivative, net liability position, aggregate fair value	17.8
Derivative, termination value	$ 17.8
Period over which default must be remedied	30 days
Recourse debt
Debt Instrument, by Type [Line Items]
Minimum amount of debt default that could cause derivative obligations to also be in default	$ 10
Non-recourse debt
Debt Instrument, by Type [Line Items]
Minimum amount of debt default that could cause derivative obligations to also be in default	$ 75

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details)	1 Months Ended	9 Months Ended
	Oct. 30, 2016USD ($)	Sep. 30, 2016USD ($)property	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Notes payable, net		$ 837,920,000		$ 1,071,571,000
Notes payable, net secured by real estate assets		269,900,000
Carrying value of real estate securing notes payable		$ 262,200,000
Number of properties with mezzanine financing | property		1
Default interest rate		5.00%
Increase in interest expense for loans that are in default		$ 1,900,000
Deferred financing fees, net		2,698,000		3,111,000
Repayments of notes payable		341,668,000	$ 870,471,000
Line of credit, maximum borrowing capacity		$ 860,000,000
Revolving loan extension period		1 year
LIBOR interest index period one		1 month
LIBOR interest index period two		3 months
LIBOR Interest Index period three		6 months
Amount of borrowings with risk managed by hedged interest rates		$ 525,000,000
Available additional borrowings		$ 137,300,000
Weighted average interest rate for borrowings under the credit facility		3.34%
Revolving credit facility
Line of Credit Facility [Line Items]
Deferred financing fees, net		$ 2,700,000		3,100,000
Minimum
Line of Credit Facility [Line Items]
Line of credit, applicable margin		0.35%
Maximum
Line of Credit Facility [Line Items]
Line of credit, applicable margin		2.50%
Mezzanine Loan
Line of Credit Facility [Line Items]
Stated annual interest rate		9.80%
Notes payable
Line of Credit Facility [Line Items]
Notes payable, net		$ 837,920,000
Debt bearing interest at variable rates		$ 50,000,000
Weighted average interest rate for consolidated debt		4.17%
Effective average interest rate overall after effect of default interest		4.46%
Net deferred financing fees		$ 7,838,000		$ 8,900,000
Notes payable | Minimum
Line of Credit Facility [Line Items]
Stated annual interest rate		2.02%
Notes payable | Maximum
Line of Credit Facility [Line Items]
Stated annual interest rate		6.09%
Fifth Third Center - Columbus OH
Line of Credit Facility [Line Items]
Carrying value of real estate securing notes payable		$ 34,000,000
Outstanding balance of non-recourse property loan in default		48,300,000
Term loan facility
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		300,000,000
Second term loan facility
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		275,000,000
Term loan facility and second term loan facility
Line of Credit Facility [Line Items]
Borrowings outstanding		575,000,000
Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		285,000,000
Borrowings outstanding		$ 0
Federal Funds Effective Rate | Line of credit
Line of Credit Facility [Line Items]
Applicable margin		0.50%
Debt Instrument Variable Rate Base Libor | Line of credit
Line of Credit Facility [Line Items]
Applicable margin		1.00%
Subsequent event | Notes payable
Line of Credit Facility [Line Items]
Repayments of notes payable	$ 70,000,000

Notes Payable (Schedule of Long

Notes Payable (Schedule of Long-Term Debt Maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Principal payments due in:
Notes payable, net	$ 837,920	$ 1,071,571
Deferred financing fees, net	2,698	3,111
Notes payable
Principal payments due in:
October 2016 - December 2016	49,104
2,017	130,021
2,018	1,622
2,019	301,723
2,020	1,814
Thereafter	361,474
Less: unamortized debt issuance costs	(7,838)	(8,900)
Notes payable, net	837,920
Revolving credit facility
Principal payments due in:
Deferred financing fees, net	$ 2,700	$ 3,100

Equity (Series A Convertible Pr

Equity (Series A Convertible Preferred Stock) (Details) - USD ($) $ in Millions	Mar. 02, 2016	Dec. 31, 2015	Sep. 30, 2015	Sep. 29, 2015
Subsidiary or Equity Method Investee [Line Items]
Common stock issued (in shares)	0
Behringer Harvard Reit I Services Holdings Llc
Subsidiary or Equity Method Investee [Line Items]
Series A participating, voting, and convertible preferred stock outstanding shares (in shares)		10,000
Convertible preferred stock, value, outstanding			$ 2.7	$ 4.6

Equity (Stock Options) (Detail

Equity (Stock Options) (Details) - Independent Directors - Equity Option	Sep. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options (in shares) | shares	8,330
Weighted average exercise price (in dollars per share) | $ / shares	$ 40.13

Equity (Restricted Stock Units)

Equity (Restricted Stock Units) (Details)	Jan. 26, 2016Metric$ / sharesshares	Sep. 30, 2016$ / sharesshares	Sep. 30, 2015$ / sharesshares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted stock units held by independent directors, vested (in units)		6,046
Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Units, vesting period		13 months
Directors | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at the beginning of the year (in units)		28,705	13,841
Issued (in units)		18,275	0
Forfeited (in units)		0	(2)
Converted (in units)		(7,725)	(3,731)
Outstanding at the end of the year (in units)		39,255	10,108
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average price per unit, outstanding at the beginning of the year (in dollars per unit) | $ / shares		$ 18.29	$ 24.69
Weighted average price per unit, issued (in dollars per unit) | $ / shares		15.05	0
Weighted average price per unit, forfeited (in dollars per unit) | $ / shares		0	24.82
Weighted average price per unit, converted (in dollars per unit) | $ / shares		19.96	24.57
Weighted average price per unit, outstanding at the end of the year (in dollars per unit) | $ / shares		$ 16.45	$ 24.73
Employee | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Issued (in units)	111,063
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average price per unit, issued (in dollars per unit) | $ / shares	$ 15.26
Number of metrics used to compare annualized total stockholder return to | Metric	3
Estimated fair value of award determined by Monte Carlo model (in dollars per unit) | $ / shares	$ 19.18
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility	24.00%
Risk-free interest rate	1.15%
Expected term	35 months
Expected dividend yield	4.50%
Minimum | Employee | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of common stock shares that restricted stock units can be converted to (in shares)		0
Maximum | Employee | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of common stock shares that restricted stock units can be converted to (in shares)		222,126

Equity (Restricted Stock) (Deta

Equity (Restricted Stock) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Compensation expense related to the amortization of all equity-based incentive awards	$ 1.1	$ 0.5	$ 3.1	$ 1.6
Total remaining compensation cost on unvested awards	$ 4.8		$ 4.8
Compensation cost not yet recognized, unvested awards, period for recognition			1 year 8 months
Restricted Stock issued prior to December 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of restrictions that lapse			25.00%
Number of years over which restrictions lapse			4 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at the beginning of the year (in units)			281,905	118,563
Issued (in units)			119,523	106,811
Forfeiture (in shares)			(8,406)	(2,203)
Restrictions lapsed (in units)			(59,673)	(33,726)
Outstanding at the end of the year (in units)	333,349	189,445	333,349	189,445
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average price per unit, outstanding at the beginning of the year (in dollars per unit)			$ 22.46	$ 24.73
Weighted average price per unit, issues (in dollars per unit)			15.19	26.88
Weighted average price per unit, forfeited (in dollars per unit)			19.98	25.64
Weighted average price per unit, restrictions lapsed (in dollars per unit)			25.64	24.65
Weighted average price per unit, outstanding at the end of the year (in dollars per unit)	$ 19.34	$ 25.95	$ 19.34	$ 25.95
Tranche One | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage, restricted stock			33.33%
Tranche Two | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage, restricted stock			33.33%
Tranche Three | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage, restricted stock			33.33%

Equity (Distributions) (Details

Equity (Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended							9 Months Ended		12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Equity [Abstract]
Distributions declared per common share (in dollars per share)	$ 0.18				$ 0.18	$ 0.18		$ 0.54	$ 0.36
Total	$ 8,602	$ 8,601	$ 8,600	$ 8,596	$ 8,556	$ 9,028	$ 0	$ 25,803		$ 26,180
Distributions declared, common stockholders	8,595	8,594	8,594	8,576	8,539	9,011	0	25,783	$ 17,550	26,126
Distributions declared, preferred stockholders	0	0	0	2	2	2	0	0	4	6
Distributions declared, noncontrolling interests	$ 7	$ 7	$ 6	$ 18	$ 15	$ 15	$ 0	$ 20	$ 30	$ 48

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)executive
Commitments and contingencies
Number of executives | executive	5
Period of automatic continuation of term of employment	1 year
Notice period for non-renewal of term prior to the expiration of the initial term	60 days
Commitments for future tenant improvements and leasing commissions
Commitments and contingencies
Future tenant improvements and leasing commissions	$ 27.2
Employment agreements
Commitments and contingencies
Compensation expense if termination of employment without cause	$ 12.2

Supplemental Cash Flow Inform60

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Interest paid, net of amounts capitalized			$ 29,904	$ 42,764
Income taxes paid			2,001	977
Non-cash investing activities:
Property and equipment additions in accounts payable and accrued liabilities			10,698	11,382
Amortization of deferred financing fees in building and improvements, net			0	240
Contribution of land to non wholly-owned entity			0	14,002
Liabilities assumed through the purchase of real estate			0	1,800
Non-cash financing activities:
Cancellation of Series A Convertible Preferred Stock			2,700	0
Mortgage notes assumed by purchaser			0	47,074
Dilution of Series A Convertible Preferred Stock	$ 0	$ 1,926	0	1,926
Financing costs in accounts payable and accrued liabilities			0	33
Unrealized loss on interest rate derivatives			12,810	9,376
Accrual for distributions declared			8,602	8,556
Contributions from noncontrolling interests			$ 0	$ 1,000