0001042776-20-000204 | 10-Q | XBRL Viewer | Piedmont Office Realty Trust INC

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2020	Oct. 28, 2020
Cover [Abstract]
Document Type	10-Q
Document Transition Report	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Entity File Number	001-34626
Entity Registrant Name	Piedmont Office Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	58-2328421
Entity Address, Address Line One	5565 Glenridge Connector Ste. 450
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30342
City Area Code	770
Local Phone Number	418-8800
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	PDM
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		126,028,762
Document Fiscal Year Focus	2020
Amendment Flag	false
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001042776

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Real estate assets, at cost:
Land	$ 505,228	$ 485,560
Buildings and improvements, less accumulated depreciation of $803,160 and $730,750 as of September 30, 2020 and December 31, 2019, respectively	2,480,820	2,212,935
Intangible lease assets, less accumulated amortization of $63,353 and $50,766 as of September 30, 2020 and December 31, 2019, respectively	98,517	74,405
Construction in progress	56,393	29,920
Real estate assets held for sale, net	0	139,690
Total real estate assets	3,140,958	2,942,510
Cash and cash equivalents	23,958	13,545
Tenant receivables, net of allowance for doubtful accounts of $4,831 and $0 as of September 30, 2020 and December 31, 2019, respectively	11,301	8,226
Straight-line rent receivables	154,620	132,342
Restricted cash and escrows	1,781	1,841
Prepaid expenses and other assets	28,074	25,427
Goodwill	98,918	98,918
Deferred lease costs, less accumulated amortization of $169,975 and $147,324 as of September 30, 2020 and December 31, 2019, respectively	293,472	265,747
Other assets held for sale, net	0	28,201
Total assets	3,753,082	3,516,757
Liabilities:
Unsecured debt, net of discount and unamortized debt issuance costs of $11,589 and $7,626 as of September 30, 2020 and December 31, 2019, respectively	1,588,411	1,292,374
Secured debt, net of premiums and unamortized debt issuance costs of $448 and $343 as of September 30, 2020 and December 31, 2019, respectively	28,424	189,030
Accounts payable, accrued expenses and accrued capital expenditures	120,763	117,496
Dividends payable	0	26,427
Deferred income	36,613	34,609
Intangible lease liabilities, less accumulated amortization of $24,881 and $19,607 as of September 30, 2020 and December 31, 2019, respectively	38,324	25,069
Interest rate swaps	10,618	5,121
Other liabilities held for sale	0	7,657
Total liabilities	1,823,153	1,697,783
Commitments and Contingencies (Note 7)	0	0
Stockholders’ Equity:
Shares-in-trust, 150,000,000 shares authorized; none outstanding as of September 30, 2020 or December 31, 2019	0	0
Preferred stock, no par value, 100,000,000 shares authorized; none outstanding as of September 30, 2020 or December 31, 2019	0	0
Common stock, $0.01 par value, 750,000,000 shares authorized; 126,028,762 and 125,783,408 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	1,260	1,258
Additional paid-in capital	3,692,634	3,686,398
Cumulative distributions in excess of earnings	(1,740,670)	(1,871,375)
Other comprehensive income/(loss)	(24,993)	967
Piedmont stockholders’ equity	1,928,231	1,817,248
Noncontrolling interest	1,698	1,726
Total stockholders’ equity	1,929,929	1,818,974
Total liabilities and stockholders’ equity	$ 3,753,082	$ 3,516,757

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Intangible lease assets, accumulated amortization	$ 63,353	$ 50,766
Tenant receivables, allowance for doubtful accounts	4,831	0
Deferred lease costs, accumulated amortization	169,975	147,324
Liabilities:
Intangible lease liabilities, accumulated amortization	$ 24,881	$ 19,607
Stockholders’ Equity:
Shares-in-trust, shares authorized (in shares)	150,000,000	150,000,000
Shares-in-trust, shares outstanding (in shares)	0	0
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	126,028,762	125,783,408
Common stock, shares outstanding (in shares)	126,028,762	125,783,408
Unsecured Debt
Liabilities:
Discount (premiums) and unamortized debt issuance costs	$ 11,589	$ 7,626
Secured Debt
Liabilities:
Discount (premiums) and unamortized debt issuance costs	(448)	(343)
Building and improvements
Assets:
Buildings and improvements, accumulated depreciation	$ 803,160	$ 730,750

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Rental and tenant reimbursement revenue	$ 128,280	$ 130,579	$ 391,681	$ 382,213
Total revenues	131,693	135,421	403,495	399,025
Expenses:
Property operating costs	53,293	54,613	159,631	158,798
Depreciation	28,255	27,131	83,339	80,004
Amortization	22,990	19,505	70,970	55,666
Impairment loss on real estate assets	0	1,953	0	1,953
General and administrative	5,469	7,950	20,049	29,736
Expenses	110,007	111,152	333,989	326,157
Other income (expense):
Interest expense	(12,725)	(16,145)	(41,942)	(46,750)
Other income	319	263	817	1,292
Loss on early extinguishment of debt	0	0	(9,336)	0
Gain/(loss) on sale of real estate assets	(340)	32	191,032	39,370
Nonoperating income (expense)	(12,746)	(15,850)	140,571	(6,088)
Net income	8,940	8,419	210,077	66,780
Net loss applicable to noncontrolling interest	3	3	2	3
Net income applicable to Piedmont	$ 8,943	$ 8,422	$ 210,079	$ 66,783
Per share information – basic:
Net income applicable to common stockholders (in dollars per share)	$ 0.07	$ 0.07	$ 1.67	$ 0.53
Per share information – diluted:
Net income applicable to common stockholders (in dollars per share)	$ 0.07	$ 0.07	$ 1.66	$ 0.53
Weighted-average common shares outstanding – basic (in shares)	126,028,762	125,783,408	125,955,097	125,684,202
Weighted-average common shares outstanding – diluted (in shares)	126,385,035	126,239,744	126,302,051	126,189,851
Property management fee revenue
Revenues:
Property management and other property related revenue	$ 751	$ 405	$ 2,146	$ 2,819
Other property related income
Revenues:
Property management and other property related revenue	$ 2,662	$ 4,437	$ 9,668	$ 13,993

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income applicable to Piedmont	$ 8,943	$ 8,422	$ 210,079	$ 66,783
Other comprehensive loss:
Effective portion of loss on derivative instruments that are designated and qualify as cash flow hedges (See Note 5)	(2,443)	(1,386)	(26,949)	(6,874)
Plus/(less): Reclassification of net (gain)/loss included in net income (See Note 5)	810	(427)	989	(1,871)
Other comprehensive loss	(1,633)	(1,813)	(25,960)	(8,745)
Comprehensive income applicable to Piedmont	$ 7,310	$ 6,609	$ 184,119	$ 58,038

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Cumulative Distributions in Excess of Earnings	Other Comprehensive Income/(Loss)	Non- controlling Interest
Beginning balance (in shares) at Dec. 31, 2018		126,219,000
Balance at Dec. 31, 2018	$ 1,712,140	$ 1,262	$ 3,683,186	$ (1,982,542)	$ 8,462	$ 1,772
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Offering costs	(700)		(700)
Share repurchases as part of announced plan (in shares)		(728,000)
Share repurchases as part of an announced plan	(12,482)	$ (7)		(12,475)
Dividends to common stockholders, stockholders of subsidiaries, and dividends reinvested	(79,447)		(216)	(79,204)		(27)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares)		292,000
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	3,237	$ 3	3,234
Net loss applicable to noncontrolling interest	(3)					(3)
Net income applicable to Piedmont	66,783			66,783
Other comprehensive loss	(8,745)				(8,745)
Ending balance (in shares) at Sep. 30, 2019		125,783,000
Balance at Sep. 30, 2019	1,680,783	$ 1,258	3,685,504	(2,007,438)	(283)	1,742
Beginning balance (in shares) at Jun. 30, 2019		125,783,000
Balance at Jun. 30, 2019	1,702,975	$ 1,258	3,687,881	(1,989,446)	1,530	1,752
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Offering costs	(700)		(700)
Dividends to common stockholders, stockholders of subsidiaries, and dividends reinvested	(26,495)		(74)	(26,414)		(7)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares)		0
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	(1,603)	$ 0	(1,603)
Net loss applicable to noncontrolling interest	(3)					(3)
Net income applicable to Piedmont	8,422			8,422
Other comprehensive loss	(1,813)				(1,813)
Ending balance (in shares) at Sep. 30, 2019		125,783,000
Balance at Sep. 30, 2019	$ 1,680,783	$ 1,258	3,685,504	(2,007,438)	(283)	1,742
Beginning balance (in shares) at Dec. 31, 2019	125,783,408	125,783,000
Balance at Dec. 31, 2019	$ 1,818,974	$ 1,258	3,686,398	(1,871,375)	967	1,726
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends to common stockholders, stockholders of subsidiaries, and dividends reinvested	(79,405)		(5)	(79,374)		(26)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares)		246,000
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	6,243	$ 2	6,241
Net loss applicable to noncontrolling interest	(2)					(2)
Net income applicable to Piedmont	210,079			210,079
Other comprehensive loss	$ (25,960)				(25,960)
Ending balance (in shares) at Sep. 30, 2020	126,028,762	126,029,000
Balance at Sep. 30, 2020	$ 1,929,929	$ 1,260	3,692,634	(1,740,670)	(24,993)	1,698
Beginning balance (in shares) at Jun. 30, 2020		126,025,000
Balance at Jun. 30, 2020	1,947,837	$ 1,260	3,691,377	(1,723,147)	(23,360)	1,707
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends to common stockholders, stockholders of subsidiaries, and dividends reinvested	(26,472)			(26,466)		(6)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares)		4,000
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	1,257	$ 0	1,257
Net loss applicable to noncontrolling interest	(3)					(3)
Net income applicable to Piedmont	8,943			8,943
Other comprehensive loss	$ (1,633)				(1,633)
Ending balance (in shares) at Sep. 30, 2020	126,028,762	126,029,000
Balance at Sep. 30, 2020	$ 1,929,929	$ 1,260	$ 3,692,634	$ (1,740,670)	$ (24,993)	$ 1,698

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividends to common stockholders per share (in dollars per share)	$ 0.21	$ 0.21	$ 0.63	$ 0.63

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net income	$ 210,077	$ 66,780
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	83,339	80,004
Amortization of debt issuance costs net of favorable settlement of interest rate swaps	1,319	419
Other amortization	64,076	52,057
Impairment loss on real estate assets	0	1,953
Loss on early extinguishment of debt	349	0
General reserve for uncollectible accounts	4,831	0
Stock compensation expense	6,980	12,365
Gain on sale of real estate assets	(191,032)	(39,370)
Changes in assets and liabilities:
Increase in tenant and straight-line rent receivables	(30,898)	(10,660)
Increase in prepaid expenses and other assets	(3,745)	(1,958)
Cash paid upon settlement of interest rate swaps	(19,930)	0
Increase/(decrease) in accounts payable and accrued expenses	12,834	(2,496)
Increase in deferred income	610	1,149
Net cash provided by operating activities	138,810	160,243
Cash Flows from Investing Activities:
Acquisition of real estate assets and intangibles	(396,745)	(326,144)
Capitalized expenditures	(80,007)	(57,368)
Net sales proceeds from wholly-owned properties	350,807	180,975
Deferred lease costs paid	(27,011)	(16,632)
Net cash used in investing activities	(152,956)	(219,169)
Cash Flows from Financing Activities:
Debt issuance and other costs paid	(1,116)	(91)
Proceeds from debt	1,136,383	550,000
Repayments of debt	(1,001,711)	(358,041)
Discount paid due to loan modification	(525)	0
Costs of issuance of common stock	0	(259)
Value of shares withheld for payment of taxes related to employee stock compensation	(2,700)	(3,295)
Repurchases of common stock as part of announced plan	0	(16,899)
Dividends paid and discount on dividend reinvestments	(105,832)	(106,419)
Net cash provided by financing activities	24,499	64,996
Net increase in cash, cash equivalents, and restricted cash and escrows	10,353	6,070
Cash, cash equivalents, and restricted cash and escrows, beginning of period	15,386	6,034
Cash, cash equivalents, and restricted cash and escrows, end of period	$ 25,739	$ 12,104

Organization	9 Months Ended
Organization	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Piedmont Office Realty Trust, Inc. (“Piedmont”) (NYSE: PDM) is a Maryland corporation that operates in a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes and engages in the acquisition, development, redevelopment, management, and ownership of commercial real estate properties located primarily in select sub-markets within seven major Eastern U.S. office markets, including properties that are under construction, are newly constructed, or have operating histories. Piedmont was incorporated in 1997 and commenced operations in 1998. Piedmont conducts business primarily through Piedmont Operating Partnership, L.P. (“Piedmont OP”), a Delaware limited partnership, as well as performing the management of its buildings through two wholly-owned subsidiaries, Piedmont Government Services, LLC and Piedmont Office Management, LLC. Piedmont owns 99.9% of, and is the sole general partner of, Piedmont OP and as such, possesses full legal control and authority over the operations of Piedmont OP. The remaining 0.1% ownership interest of Piedmont OP is held indirectly by Piedmont through its wholly-owned, taxable REIT subsidiary, Piedmont Office Holdings, Inc. ("POH"), the sole limited partner of Piedmont OP. Piedmont OP owns properties directly, through wholly-owned subsidiaries, and through various joint ventures which it controls. References to Piedmont herein shall include Piedmont and all of its subsidiaries, including Piedmont OP and its subsidiaries and joint ventures. As of September 30, 2020, Piedmont owned 57 in-service office properties in select sub-markets located within seven major U.S. office markets: Atlanta, Boston, Dallas, Minneapolis, New York, Orlando, and Washington, D.C. As of September 30, 2020, Piedmont's 57 in-service office properties comprised approximately 17.2 million square feet of primarily Class A commercial office space and were 86.9% leased. Piedmont internally evaluates all of its real estate assets as one operating segment, and accordingly does not report segment information.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The consolidated financial statements of Piedmont have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results.

Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") for which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2019.

All intercompany balances and transactions have been eliminated upon consolidation.

Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgements regarding the recoverability of goodwill, and the assessment of the collectibility of receivables. Future impacts of the COVID-19 pandemic on Piedmont and its tenants may affect these and other estimates used in the preparation of these financial statements. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could materially differ from those estimates.

Income Taxes

Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of properties in certain locations, as well as operations conducted by its taxable REIT subsidiary, POH, which have been provided for in the financial statements.

Operating Leases

Piedmont recognized the following fixed and variable lease payments, which together comprised rental and tenant reimbursement revenue in the accompanying consolidated statements of income for the three and nine months ended September 30, 2020 and 2019, respectively, as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Fixed payments	$	108,071	$	105,207	$	329,281	$	311,503
Variable payments	20,209		25,372		62,400		70,710
Total Rental and Tenant Reimbursement Revenue	$	128,280	$	130,579	$	391,681	$	382,213

Operating leases where Piedmont is the lessee relate primarily to office space in buildings owned by third parties. For both the three and nine months ended September 30, 2020 and 2019, Piedmont recognized approximately $20,000 and $60,000, respectively, of operating lease costs related to these office space leases. As of September 30, 2020, the weighted-average lease term of Piedmont's right of use assets is approximately three years, and the weighted-average discount rate is 3.35%.

Intangible Assets and Liabilities Resulting from Purchasing Real Estate Assets

Upon the acquisition of real properties, Piedmont allocates the purchase price of the properties to tangible assets, consisting of land, building, site improvements, and identified intangible assets and liabilities, including the value of in-place leases, based in each case on Piedmont's estimate of their fair values in accordance with Accounting Standards Codification ("ASC") 820 Fair Value Measurements.

Gross intangible lease assets and liabilities arising from in-place leases, inclusive of amounts classified as real estate assets held for sale, recorded at acquisition as of September 30, 2020 and December 31, 2019, respectively, are as follows (in thousands):


	September 30, 2020		December 31, 2019
Intangible Lease Assets:
Above-Market In-Place Lease Assets	$	2,227	$	2,082
In-Place Lease Valuation	$	159,643	$	157,101
Intangible Lease Origination Costs (included as component of Deferred Lease Costs)	$	254,856	$	256,627
Intangible Lease Liabilities (Below-Market In-Place Leases)	$	63,205	$	84,292

For the three and nine months ended September 30, 2020 and 2019, respectively, Piedmont recognized amortization of intangible lease costs as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Amortization of Intangible Lease Origination Costs and In-Place Lease Valuation included in amortization expense	$	18,522	$	15,881	$	58,674	$	45,057
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues	$	3,147	$	1,923	$	9,423	$	6,009

Net intangible assets and liabilities as of September 30, 2020 will be amortized as follows (in thousands):


	Intangible Lease Assets
	Above-Market In-place Lease Assets		In-Place Lease Valuation		Intangible Lease Origination Costs (1)		Below-Market In-place Lease Liabilities
For the remainder of 2020	$	117	$	7,576	$	10,368	$	2,884
For the years ending December 31:
2021	420		27,635		38,743		10,899
2022	300		20,773		30,527		8,422
2023	103		13,923		21,019		5,139
2024	70		9,141		14,462		3,238
2025	6		5,658		10,069		2,072
Thereafter	18		12,777		24,881		5,670
	$	1,034	$	97,483	$	150,069	$	38,324

Weighted-Average Amortization Period (in years)	3		5		6		5

(1)Included as a component of Deferred Lease Costs in the accompanying consolidated balance sheets.

Accounting Pronouncements and Amendments Adopted during the Nine Months Ended September 30, 2020

Reference Rate Reform Relief

Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"), was issued in March 2020. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the nine months ended September 30, 2020, Piedmont elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. Piedmont continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Financial Instruments- Credit Loss Amendments

On January 1, 2020, Piedmont adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as well as ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU No. 2019-05, Financial Instruments- Credit Losses: Targeted Transition Relief (collectively the "Credit Loss Amendments"). The provisions of the Credit Loss Amendments replace the "incurred loss" approach with an "expected loss" model for impairing trade and other receivables, held-to-maturity debt securities, net investment in leases, and off-balance-sheet credit exposures, which will generally result in earlier recognition of allowances for credit losses. However, the Financial Accounting Standards Board (the "FASB") also issued ASU No. 2018-19 Codification Improvements to Topic 326, Financial Instruments - Credit

Losses, which is effective concurrent with the Credit Loss Amendments, and excludes receivables arising from operating leases from the scope of the Credit Loss Amendments and affirms that such receivables should be evaluated for collectibility as prescribed by ASC 842 Leases. As substantially all of Piedmont's receivables are operating lease receivables there was no material impact to Piedmont's accompanying consolidated financial statements or disclosures as a result of adoption of the Credit Loss Amendments.

During the nine months ended September 30, 2020, the FASB issued a Staff Q&A on Topic 842 and Topic 840 (lease accounting guidance): Accounting for lease concessions related to the effects of the COVID-19 pandemic. Generally, changes to payment terms not contemplated by the lease contract should be accounted for under Topic 842 as a lease modification. The FASB staff has provided relief from this modification guidance through an accounting policy election, provided that changes to the payment terms do not result in a substantial increase in the rights of either the lessee or the lessor under the lease. Piedmont has elected not to apply the relief provided by the FASB Staff, and has instead accounted for all rent relief agreements as result of COVID-19 as lease modifications. See further details concerning rent relief agreements with Piedmont's tenants in Note 7 below.

Reclassifications

Certain prior period amounts presented in the accompanying consolidated balance sheets have been reclassified as of December 31, 2019 to conform to the current period financial statement presentation related to the 1901 Market Street building, which was classified as held for sale as of March 31, 2020, and sold on June 25, 2020. (see Note 8).

Acquisitions

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Acquisitions

During the nine months ended September 30, 2020, Piedmont acquired three properties and adjacent developable land (collectively the "Dallas Galleria Office Towers") using cash on hand and available funds from the $500 Million Unsecured 2018 Line of Credit, as noted below:

Property

Metropolitan Statistical Area

Date of Acquisition

Ownership Percentage Acquired

Rentable Square Feet

Percentage Leased as of Acquisition

Net Contractual Purchase Price(1)(in millions)

Dallas Galleria Office Towers

Dallas, Texas

February 12, 2020

100%

1,435,466

95%

$396.2

(1)Price includes the purchase of an adjacent parcel of approximately 1.9 acres of developable land.

The purchase price of the Dallas Galleria Office Towers and undeveloped land, inclusive of approximately $0.6 million of closing costs, was allocated as follows:


	Dallas Galleria Office Towers and Undeveloped Land
Land	$	19,674
Building and improvements	293,760
Intangible lease assets (1)	49,177
Lease acquisition costs, net of tenant credits received from seller (1)	1,344
Intangible lease origination costs (1)	55,060
Intangible lease liabilities (1)	(22,169)
Total purchase price	$	396,846

(1)Amortization of in-place lease intangibles and lease acquisition costs are recognized using the straight-line method over approximately 5.2 years, the average remaining life of in-place leases.

Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

During the three months ended September 30, 2020, Piedmont issued, through its wholly owned operating partnership, Piedmont OP, $300 million in aggregate principal amount of 3.15% Senior Notes due 2030 (the “$300 Million Unsecured Senior Notes”), which mature on August 15, 2030. Upon issuance of the $300 Million Unsecured Senior Notes, Piedmont OP received proceeds of approximately $297.7 million, reflecting a discount of approximately $2.3 million which will be amortized as interest expense under the effective interest method over the ten-year term of the $300 Million Unsecured Senior Notes. In addition, in conjunction with the issuance, Piedmont settled four forward starting rate swaps, consisting of notional amounts of $200 million. These swaps were settled at a loss of approximately $19.9 million that was recorded as accumulated other comprehensive income and is being amortized as an increase in interest expense over the ten-year term of the $300 Million Unsecured Senior Notes. See Note 5 for further detail. The proceeds from the $300 Million Unsecured Senior Notes were used to fully repay the $300 Million Unsecured 2020 Term Loan that was obtained for the purchase of the Dallas Galleria Office Towers.

Additionally, during the nine months ended September 30, 2020, Piedmont amended the $250 Million Unsecured 2018 Term Loan to reduce the applicable interest rate spread from LIBOR plus 160 basis points to LIBOR plus 95 basis points, based on Piedmont's current credit rating.

Interest on the $300 Million Unsecured Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2021. The $300 Million Unsecured Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by Piedmont. Piedmont OP may, at its option, redeem the $300 Million Unsecured Senior Notes, in whole or in part, prior to May 15, 2030, at a redemption price equal to the greater of (i) 100% of the principal amount of the $300 Million Unsecured Senior Notes to be redeemed and (ii) a “make-whole” amount, plus any unpaid accrued interest. In addition, at any time on or after May 15, 2030, Piedmont OP may, at its option, redeem the $300 Million Unsecured Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the $300 Million Unsecured Senior Notes to be redeemed plus unpaid accrued interest. The $300 Million Unsecured Senior Notes are subject to certain typical covenants that, subject to certain exceptions: (a) limit the ability of Piedmont and Piedmont OP to, among other things, incur additional secured and unsecured indebtedness; (b) limit the ability of Piedmont and Piedmont OP to merge, consolidate, sell, lease or otherwise dispose of their properties and assets substantially as an entirety; and (c) require Piedmont to maintain a pool of unencumbered assets. The $300 Million Unsecured Senior Notes are also subject to customary events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the $300 Million Unsecured Senior Notes to become or to be declared due and payable.

Finally, during the nine months ended September 30, 2020, Piedmont sold the 1901 Market Street building (see Note 8 for further details) and used the majority of the net sale proceeds to repay the $160 Million Fixed-Rate Loan that was secured by the property and all remaining outstanding borrowings under the $500 Million Unsecured 2018 Line of Credit. As a result of repaying the $160 Million Fixed-Rate Loan in advance of its stated maturity, Piedmont recognized a $9.3 million loss on early extinguishment of debt comprised of a prepayment penalty and unamortized deferred financing costs.

The following table summarizes the terms of Piedmont’s indebtedness outstanding as of September 30, 2020 and December 31, 2019 (in thousands):


Facility (1)	Stated Rate		Effective Rate (2)			Maturity		Amount Outstanding as of
								September 30, 2020		December 31, 2019
Secured (Fixed)







$35 Million Fixed-Rate Loan (3)	5.55	%	3.75	%		9/1/2021		$	27,976	$	28,687
$160 Million Fixed-Rate Loan (4)	3.48	%	3.58	%		7/5/2022		—		160,000
Net premium and unamortized debt issuance costs								448		343
Subtotal/Weighted Average (5)	5.55	%						28,424		189,030
Unsecured (Variable and Fixed)





Amended and Restated $300 Million Unsecured 2011 Term Loan (6)	LIBOR + 1.00%		1.16	%		11/30/2021		300,000		300,000
$500 Million Unsecured 2018 Line of Credit (6)	LIBOR + 0.90%		—	%		9/30/2022	(7)	—		—
$350 Million Unsecured Senior Notes	3.40	%	3.43	%		6/01/2023		350,000		350,000
$400 Million Unsecured Senior Notes	4.45	%	4.10	%		3/15/2024		400,000		400,000
$250 Million Unsecured 2018 Term Loan	LIBOR + 0.95%		2.08	%	(8)	3/31/2025		250,000		250,000

$300 Million Unsecured Senior Notes	3.15	%	3.90	%	(9)	8/15/2030		300,000		—
Discounts and unamortized debt issuance costs								(11,589)		(7,626)
Subtotal/Weighted Average (5)	2.99	%						1,588,411		1,292,374
Total/Weighted Average (5)	3.03	%						$	1,616,835	$	1,481,404

(1)Other than one mortgage, the $35 Million Fixed-Rate Loan, all of Piedmont’s outstanding debt as of September 30, 2020 and December 31, 2019 is interest-only until maturity.

(2)Effective rate after consideration of settled or in-place interest rate swap agreements, issuance premiums/discounts, and/or fair market value adjustments upon assumption of debt.

(3)Collateralized by the 5 Wall Street building in Burlington, Massachusetts.

(4)Previously collateralized by the 1901 Market Street building in Philadelphia, Pennsylvania.

(5)Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of September 30, 2020.

(6)On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating.

(7)Piedmont may extend the term for up to one additional year (through two available six month extensions to a final extended maturity date of September 29, 2023) provided Piedmont is not then in default and upon payment of extension fees.

(8)The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes to Piedmont's credit rating, $100 million of the principal balance to 3.56% through the maturity date of the loan. For the remaining variable portion of the loan, Piedmont may periodically select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of September 30, 2020 (see Note 5 for more detail).

(9)The $300 Million Unsecured Senior Notes have a fixed coupon rate of 3.15%, however, as a result of the issuance of the notes at a discount, Piedmont recognizes an effective interest rate on this debt issuance of 3.24%. After consideration of the impact of settled interest rate swap agreements, in addition to the issuance discount, the effective interest rate on this debt is 3.90%.

Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $12.8 million and $17.8 million for the three months ended September 30, 2020 and 2019, respectively, and approximately $41.8 million and $49.7 million for the nine months ended September 30, 2020 and 2019, respectively. Also, Piedmont capitalized interest of approximately $0.2 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively, and approximately $0.6 million and $1.6 million for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments.

See Note 6 for a description of Piedmont’s estimated fair value of debt as of September 30, 2020.

Derivative Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Risk Management Objective of Using Derivatives

In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments such as interest rate swap agreements and other similar agreements to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements.

Cash Flow Hedges of Interest Rate Risk

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for Piedmont making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

During the nine months ended September 30, 2020, Piedmont entered into four forward starting interest rate swap agreements with a total notional value of $200 million to hedge the risk of changes in the interest-related cash flows associated with an expected issuance of long-term debt. In conjunction with the issuance of the $300 Million Unsecured Senior Notes (see Note 4), Piedmont settled these forward starting swap agreements for a loss of approximately $19.9 million. The loss was recorded as accumulated other comprehensive income and is being amortized as additional interest expense over the ten-year term of the $300 Million Unsecured Senior Notes. Further, as of September 30, 2020, Piedmont was party to two other interest rate swap agreements, which are designated as effective cash flow hedges and hedge the variable cash flows covering $100 million of the $250 Million Unsecured 2018 Term Loan. The maximum length of time over which Piedmont is hedging its exposure to the variability in future cash flows for forecasted transactions is 54 months.

A detail of Piedmont’s interest rate derivatives outstanding as of September 30, 2020 is as follows:

Interest Rate Derivatives:

Number of Swap Agreements

Associated Debt Instrument

Total Notional Amount
(in millions)

Effective Date

Maturity Date

Interest rate swaps

$250 Million Unsecured 2018 Term Loan

100

3/29/2018

3/31/2025

Piedmont presents its interest rate derivatives on its consolidated balance sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. A detail of Piedmont’s interest rate derivatives on a gross and net basis as of September 30, 2020 and December 31, 2019, respectively, is as follows (in thousands):


Interest rate swaps classified as:	September 30, 2020		December 31, 2019
Gross derivative assets	$	—	$	—
Gross derivative liabilities	(10,618)		(5,121)
Net derivative liability	$	(10,618)	$	(5,121)

The loss on Piedmont's interest rate derivatives, including previously settled forward swaps, that was recorded in other comprehensive income ("OCI") and the accompanying consolidated statements of income as a component of interest expense for the three and nine months ended September 30, 2020 and 2019, respectively, was as follows (in thousands):


	Three Months Ended				Nine Months Ended
Interest Rate Swaps in Cash Flow Hedging Relationships	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Amount of loss recognized in OCI	$	(2,443)	$	(1,386)	$	(26,949)	$	(6,874)
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense	$	(810)	$	427	$	(989)	$	1,871


Total amount of Interest Expense presented in the consolidated statements of income	$	(12,725)	$	(16,145)	$	(41,942)	$	(46,750)

Piedmont estimates that approximately $2.9 million will be reclassified from OCI as an increase in interest expense over the next twelve months. Piedmont recognized no hedge ineffectiveness on its cash flow hedges during the three and nine months ended September 30, 2020 and 2019, respectively.

Additionally, see Note 6 for fair value disclosures of Piedmont's derivative instruments.

Credit-risk-related Contingent Features

Piedmont has agreements with its derivative counterparties that contain a provision whereby if Piedmont defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Piedmont could also be declared in default on its derivative obligations. If Piedmont were to breach any of the contractual provisions of the derivative contracts, it could be required to settle its liability obligations under the agreements at their termination value of the estimated fair values plus accrued interest, or approximately $11.0 million as of September 30, 2020. Additionally, Piedmont has rights of set-off under certain of its derivative agreements related to potential termination fees and amounts payable under the agreements, if a termination were to occur.

Fair Value Measurement of Financial Instruments

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurement of Financial Instruments

Piedmont considers its cash and cash equivalents, tenant receivables, restricted cash and escrows, accounts payable and accrued expenses, interest rate swap agreements, and debt to meet the definition of financial instruments. The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of September 30, 2020 and December 31, 2019, respectively (in thousands):


	September 30, 2020					December 31, 2019
Financial Instrument	Carrying Value		Estimated Fair Value		Level Within Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Level Within Fair Value Hierarchy
Assets:
Cash and cash equivalents (1)	$	23,958	$	23,958	Level 1	$	13,545	$	13,545	Level 1
Tenant receivables, net of allowance for doubtful accounts (1)	$	11,301	$	11,301	Level 1	$	8,226	$	8,226	Level 1

Restricted cash and escrows (1)	$	1,781	$	1,781	Level 1	$	1,841	$	1,841	Level 1

Liabilities:
Accounts payable and accrued expenses (1)	$	10,874	$	10,874	Level 1	$	50,049	$	50,049	Level 1
Interest rate swaps	$	10,618	$	10,618	Level 2	$	5,121	$	5,121	Level 2
Debt, net	$	1,616,835	$	1,650,928	Level 2	$	1,481,404	$	1,536,687	Level 2

(1)For the periods presented, the carrying value of these financial instruments, net of applicable allowance, approximates estimated fair value due to their short-term maturity.

Piedmont's debt was carried at book value as of September 30, 2020 and December 31, 2019; however, Piedmont's estimate of its fair value is disclosed in the table above. Piedmont uses widely accepted valuation techniques including discounted cash

flow analysis based on the contractual terms of the debt facilities, including the period to maturity of each instrument, and uses observable market-based inputs for similar debt facilities which have transacted recently in the market. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). Scaling adjustments are made to these inputs to make them applicable to the remaining life of Piedmont's outstanding debt. Piedmont has not changed its valuation technique for estimating the fair value of its debt.

Piedmont’s interest rate swap agreements presented above, and as further discussed in Note 5, are classified as “Interest rate swap” liabilities in the accompanying consolidated balance sheets and were carried at estimated fair value as of September 30, 2020 and December 31, 2019. The valuation of these derivative instruments was determined using widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of the derivatives, including the period to maturity of each instrument, and uses observable market-based inputs, including interest rate curves and implied volatilities. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). In addition, Piedmont considered both its own and the respective counterparties’ risk of nonperformance in determining the estimated fair value of its derivative financial instruments by estimating the current and potential future exposure under the derivative financial instruments that both Piedmont and the counterparties were at risk for as of the valuation date. The credit risk of Piedmont and its counterparties was factored into the calculation of the estimated fair value of the interest rate swaps; however, as of September 30, 2020 and December 31, 2019, this credit valuation adjustment did not comprise a material portion of the estimated fair value. Therefore, Piedmont believes that any unobservable inputs used to determine the estimated fair values of its derivative financial instruments are not significant to the fair value measurements in their entirety, and does not consider any of its derivative financial instruments to be Level 3 liabilities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments Under Existing Lease Agreements As a recurring part of its business, Piedmont is typically required under its executed lease agreements to fund tenant improvements, leasing commissions, and building improvements. In addition, certain agreements contain provisions that require Piedmont to issue corporate or property guarantees to provide funding for capital improvements or other financial obligations. As of September 30, 2020, Piedmont had one individually significant unrecorded tenant allowance commitment of approximately $44.0 million for the approximately 20-year, 520,000 square foot renewal and expansion of one of Piedmont's largest tenants, the State of New York, at the 60 Broad Street building in New York City. This commitment will be accrued and capitalized as the related expenditures are incurred. Contingencies Related to Tenant Audits/Disputes Certain lease agreements include provisions that grant tenants the right to engage independent auditors to audit their annual operating expense reconciliations. Such audits may result in different interpretations of language in the lease agreements from that made by Piedmont, which could result in requests for refunds of previously recognized tenant reimbursement revenues, resulting in financial loss to Piedmont. There were no reductions in rental and reimbursement revenues related to such tenant audits/disputes during the nine months ended September 30, 2020 or 2019. Contingencies Related to the COVID-19 Pandemic During the third quarter of 2020, Piedmont continued to experience the repercussions of the COVID-19 pandemic including forced closures and other restrictions that have had a material adverse effect on the global economy and the regional U.S. economies in which Piedmont operates. Specifically, the pandemic and its impact on the U.S., as well as the global economy, has negatively impacted the trading price of Piedmont's common stock and some of Piedmont's tenants' ability to pay their rent. During the nine months ended September 30, 2020, Piedmont has entered into approximately 60 agreements with various tenants that primarily defer approximately $6.7 million of 2020 rent payments until either the fourth quarter of 2020 or into 2021. Further, Piedmont has established an approximately $4.8 million general reserve for potential collectibility issues; however, there can be no assurances that this amount will be sufficient to cover any future losses of rental income should these tenants be unable to pay back deferred rents when such rents become due. Piedmont’s financial statements as of and for the nine months ended September 30, 2020 have been prepared in light of these circumstances. Piedmont has continued to follow the policies described in the footnotes to Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2019, including those related to impairment of real estate assets and goodwill and estimates of the likelihood of collectibility of amounts due from tenants. While the long-term impacts of the COVID-19 pandemic remain unknown, a prolonged economic downturn or recession resulting from the pandemic could adversely affect many of Piedmont's tenants which could, in turn, adversely impact Piedmont's business, financial condition and results of operations. Piedmont will continue to work closely with its tenants and address their concerns on a case-by-case basis, seeking solutions that address immediate cash flow interruptions while maintaining long term lease obligations.

Assets Held for Sale

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale and Property Disposition

As of September 30, 2020, no properties met the criteria for held for sale classification; however, as of March 31, 2020, the 1901 Market Street building in Philadelphia, Pennsylvania, which sold June 2020, met the criteria for held for sale classification. Consequently its assets and liabilities as of December 31, 2019 were presented as held for sale for comparability in the accompanying consolidated balance sheets. In conjunction with the sale of 1901 Market Street, Piedmont recognized net sales proceeds of approximately $350.8 million resulting in gain on sale of real estate assets of approximately $191.0 million. During the nine months ended September 30, 2019, Piedmont reduced The Dupree building's carrying value to reflect its fair value, estimated based on the net contract price negotiated with an unrelated, third-party purchaser, and recognized an impairment loss of approximately $2.0 million. Piedmont closed on the sale of The Dupree building in September 2019.


	September 30, 2020		December 31, 2019
Real estate assets held for sale, net:
Land	$	—	$	20,829
Building and improvements, less accumulated depreciation of $0 and $66,823 as of September 30, 2020 and December 31, 2019, respectively	—		112,287
Intangible lease assets, less accumulated amortization of $0 and $27,438 as of September 30, 2020 and December 31, 2019, respectively	—		6,574

Total real estate assets held for sale, net	$	—	$	139,690

Other assets held for sale, net:
Straight-line rent receivables	$	—	$	18,776


Deferred lease costs, less accumulated amortization of $0 and $34,957 as of September 30, 2020 and December 31, 2019, respectively	—		9,425

Total other assets held for sale, net	$	—	$	28,201

Other liabilities held for sale:
Intangible lease liabilities, less accumulated amortization of $0 and $31,959 as of September 30, 2020 and December 31, 2019, respectively	$	—	$	7,657

Stock Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

The Compensation Committee of Piedmont's Board of Directors has periodically granted deferred stock award units to all of Piedmont's employees and independent directors. Most employee awards are time-vested and typically vest ratably over a multi-year period and independent director awards vest over one year.

Certain management employees' long-term equity incentive program is split equally between the time-vested award units and a multi-year performance share program whereby the actual awards are contingent upon Piedmont's total stockholder return ("TSR") relative to a peer group of office REITs' TSR. The long-term equity incentives for these certain employees, as well as the peer group, is predetermined by the Board of Directors, advised by an outside compensation consultant. Any shares earned are awarded at the end of the multi-year performance period and vest upon award. The fair values of the multi-year performance share awards are estimated using a Monte Carlo valuation method.

A rollforward of Piedmont's equity based award activity for the nine months ended September 30, 2020 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Unvested and Potential Stock Awards as of December 31, 2019	1,045,020	$	25.15
Deferred Stock Awards Granted	242,586	$	22.39
Increase in Estimated Potential Share Award based on TSR Performance	26,586	$	27.47
Performance Stock Awards Vested	(153,368)	$	30.45
Deferred Stock Awards Vested	(228,478)	$	21.05
Deferred Stock Awards Forfeited	(6,979)	$	21.82
Unvested and Potential Stock Awards as of September 30, 2020	925,367	$	24.07

The following table provides additional information regarding stock award activity during the three and nine months ended September 30, 2020 and 2019, respectively (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period	$	—	$	—	$	22.39	$	21.02
Total Grant Date Fair Value of Deferred Stock Vested During the Period	$	200	$	—	$	4,808	$	8,658
Share-based Liability Awards Paid During the Period (1)	$	—	$	3,444	$	4,116	$	6,683

(1)Amounts reflect the issuance of performance share awards related to the 2017-19 and 2016-18 Performance Share Plans during the nine months ended September 30, 2020 and 2019, respectively, as well as performance share award liabilities settled in cash in July 2019 for retirement and separation associated with the senior management transition on June 30, 2019.

A detail of Piedmont’s outstanding stock awards as of September 30, 2020 is as follows:


Date of grant	Type of Award	Net Shares Granted (1)	Grant Date Fair Value		Vesting Schedule	Unvested Shares



















May 17, 2018	Deferred Stock Award	250,680	$	17.84	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 17, 2019, 2020, and 2021, respectively.	52,895
May 17, 2018	Fiscal Year 2018-2020 Performance Share Program	—	$	23.52	Shares awarded, if any, will vest immediately upon determination of award in 2021.	200,674	(2)

May 3, 2019	Deferred Stock Award	274,998	$	21.04	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively.	134,173
May 3, 2019	Fiscal Year 2019-2021 Performance Share Program	—	$	29.43	Shares awarded, if any, will vest immediately upon determination of award in 2022.	181,527	(2)
February 19, 2020	Deferred Stock Award	178,309	$	24.41	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively.	143,973
March 19, 2020	Fiscal Year 2020-2022 Performance Share Program	—	$	25.83	Shares awarded, if any, will vest immediately upon determination of award in 2023.	166,345	(2)
May 13, 2020	Deferred Stock Award-Board of Directors	45,780	$	13.76	Of the shares granted, 100% will vest by May 13, 2021.	45,780
Total						925,367

(1)Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through September 30, 2020.

(2)Estimated based on Piedmont's cumulative TSR for the respective performance period through September 30, 2020. Share estimates are subject to change in future periods based upon Piedmont's relative performance compared to its peer group of office REITs' TSR.

During the three months ended September 30, 2020 and 2019, Piedmont recognized approximately $1.4 million and $3.8 million, respectively, of compensation expense related to stock awards, all of which is related to the amortization of unvested deferred shares and the fair value adjustment to performance shares. During the nine months ended September 30, 2020 and 2019, Piedmont recognized approximately $7.0 million and $12.0 million, respectively, of compensation expense related to stock awards of which $5.8 million and $10.5 million is related to the amortization of unvested deferred shares and the fair value adjustment to performance shares. During the nine months ended September 30, 2020, a net total of 245,354 shares were issued to employees and directors. As of September 30, 2020, approximately $7.5 million of unrecognized compensation cost related to unvested deferred stock awards remained, which Piedmont will record in its consolidated statements of income over a weighted-average vesting period of approximately one year.

Supplemental Disclosures for the Statement of Consolidated Cash Flows

9 Months Ended

Sep. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures for the Statement of Consolidated Cash Flows

Certain non-cash investing and financing activities for the nine months ended September 30, 2020 and 2019, (in thousands) are outlined below:


	Nine Months Ended
	September 30, 2020		September 30, 2019
Accrued capital expenditures and deferred lease costs	$	24,035	$	29,828
Change in accrued dividends and discount on dividend reinvestments	$	(26,427)	$	(26,972)

Change in accrued share repurchases as part of an announced plan	$	—	$	(4,417)
Accrued deferred financing costs	$	130	$	—
Accrued stock issuance costs	$	—	$	441

The following table provides a reconciliation of cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019, to the consolidated balance sheets for the respective period (in thousands):


	2020		2019
Cash and cash equivalents as of January 1, 2020 and 2019, respectively	$	13,545	$	4,571
Restricted cash and escrows as of January 1, 2020 and 2019, respectively	1,841		1,463


Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows	$	15,386	$	6,034

Cash and cash equivalents as of September 30, 2020 and 2019, respectively	$	23,958	$	10,284
Restricted cash and escrows as of September 30, 2020 and 2019, respectively	1,781		1,820


Cash, cash equivalents, and restricted cash and escrows, end of period, as presented in the accompanying consolidated statement of cash flows	$	25,739	$	12,104

Amounts in restricted cash and escrows typically represent escrow accounts for the payment of real estate taxes which are required under certain of Piedmont's debt agreements; earnest money deposited by a buyer to secure the purchase of one of Piedmont's properties; or security or utility deposits held for tenants as a condition of their lease agreement.

Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

There are no adjustments to “Net income applicable to Piedmont” for the diluted earnings per share computations.

Net income per share-basic is calculated as net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Net income per share-diluted is calculated as net income available to common stockholders divided by the diluted weighted average number of common shares outstanding during the period, including unvested deferred stock awards. Diluted weighted average number of common shares reflects the potential dilution under the treasury stock method that would occur if the remaining unvested deferred stock awards vested and resulted in additional common shares outstanding. Unvested deferred stock awards which are determined to be anti-dilutive are not included in the calculation of diluted weighted average common shares. For the three months ended September 30, 2020 and 2019, Piedmont calculated and excluded weighted average outstanding anti-dilutive shares of 310,425 and 344, respectively, and for the nine months ended September 30, 2020 and 2019, Piedmont calculated and excluded weighted average outstanding anti-dilutive shares of 262,165 and 134,221, respectively.

The following table reconciles the denominator for the basic and diluted earnings per share computations shown on the consolidated statements of income for the three and nine months ended September 30, 2020 and 2019, respectively (in thousands):


	Three Months Ended		Nine Months Ended
	September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
Weighted-average common shares – basic	126,029	125,783	125,955	125,684
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards	356	457	347	506
Weighted-average common shares – diluted	126,385	126,240	126,302	126,190

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Fourth Quarter Dividend Declaration On October 28, 2020, the Board of Directors of Piedmont declared a dividend for the fourth quarter of 2020 in the amount of $0.21 per common share outstanding to stockholders of record as of the close of business on November 27, 2020. Such dividend will be paid on January 4, 2021. Subsequent to September 30, 2020, Piedmont sold a portfolio of three assets located in New Jersey: 600 Corporate Drive, located in Lebanon, New Jersey; and 200 and 400 Bridgewater Crossing, located in Bridgewater, New Jersey, for approximately $130 million, or $176 per square foot. Upon completion of the sale, Piedmont no longer owns properties in New Jersey. Also subsequent to September 30, 2020, Piedmont acquired the 222 South Orange Avenue building, an approximately 127,000 square foot office building connected to Piedmont's 200 South Orange Avenue asset located in downtown Orlando, Florida, for $20 million, or $157 per square foot. The 222 South Orange Avenue building is located along the Orange Avenue entrance to Piedmont's existing 200 South Orange Avenue property, sharing several physical connection points, including an atrium. Piedmont plans to immediately begin a redevelopment of the property to reposition the asset to a standard consistent with 200 South Orange Avenue.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements of Piedmont have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results.
Principles of Consolidation	Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") for which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2019. All intercompany balances and transactions have been eliminated upon consolidation. Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgements regarding the recoverability of goodwill, and the assessment of the collectibility of receivables. Future impacts of the COVID-19 pandemic on Piedmont and its tenants may affect these and other estimates used in the preparation of these financial statements. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could materially differ from those estimates.
Income Taxes	Income Taxes Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of properties in certain locations, as well as operations conducted by its taxable REIT subsidiary, POH, which have been provided for in the financial statements.
Intangible Assets And Liabilities Resulting From Purchasing Real Estate Assets	Intangible Assets and Liabilities Resulting from Purchasing Real Estate Assets Upon the acquisition of real properties, Piedmont allocates the purchase price of the properties to tangible assets, consisting of land, building, site improvements, and identified intangible assets and liabilities, including the value of in-place leases, based in each case on Piedmont's estimate of their fair values in accordance with Accounting Standards Codification ("ASC") 820 Fair Value Measurements.
Recent Accounting Pronouncements	Accounting Pronouncements and Amendments Adopted during the Nine Months Ended September 30, 2020 Reference Rate Reform Relief Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"), was issued in March 2020. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the nine months ended September 30, 2020, Piedmont elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. Piedmont continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. Financial Instruments- Credit Loss Amendments On January 1, 2020, Piedmont adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as well as ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU No. 2019-05, Financial Instruments- Credit Losses: Targeted Transition Relief (collectively the "Credit Loss Amendments"). The provisions of the Credit Loss Amendments replace the "incurred loss" approach with an "expected loss" model for impairing trade and other receivables, held-to-maturity debt securities, net investment in leases, and off-balance-sheet credit exposures, which will generally result in earlier recognition of allowances for credit losses. However, the Financial Accounting Standards Board (the "FASB") also issued ASU No. 2018-19 Codification Improvements to Topic 326, Financial Instruments - Credit Losses, which is effective concurrent with the Credit Loss Amendments, and excludes receivables arising from operating leases from the scope of the Credit Loss Amendments and affirms that such receivables should be evaluated for collectibility as prescribed by ASC 842 Leases. As substantially all of Piedmont's receivables are operating lease receivables there was no material impact to Piedmont's accompanying consolidated financial statements or disclosures as a result of adoption of the Credit Loss Amendments. During the nine months ended September 30, 2020, the FASB issued a Staff Q&A on Topic 842 and Topic 840 (lease accounting guidance): Accounting for lease concessions related to the effects of the COVID-19 pandemic. Generally, changes to payment terms not contemplated by the lease contract should be accounted for under Topic 842 as a lease modification. The FASB staff has provided relief from this modification guidance through an accounting policy election, provided that changes to the payment terms do not result in a substantial increase in the rights of either the lessee or the lessor under the lease. Piedmont has elected not to apply the relief provided by the FASB Staff, and has instead accounted for all rent relief agreements as result of COVID-19 as lease modifications. See further details concerning rent relief agreements with Piedmont's tenants in Note 7 below. Reclassifications Certain prior period amounts presented in the accompanying consolidated balance sheets have been reclassified as of December 31, 2019 to conform to the current period financial statement presentation related to the 1901 Market Street building, which was classified as held for sale as of March 31, 2020, and sold on June 25, 2020. (see Note 8).
Risk Management Objective of Using Derivatives	Risk Management Objective of Using Derivatives In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments such as interest rate swap agreements and other similar agreements to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32847-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 954
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-Section 50
-Paragraph 1
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=116657188&loc=SL116659661-227067

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Name Accounting Standards Codification
-Topic 740
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section 05
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65884525&loc=d3e40913-109327

+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Fixed and Variable Lease Revenue


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Fixed payments	$	108,071	$	105,207	$	329,281	$	311,503
Variable payments	20,209		25,372		62,400		70,710
Total Rental and Tenant Reimbursement Revenue	$	128,280	$	130,579	$	391,681	$	382,213

Schedule of Intangible Lease Assets and Liabilities


	September 30, 2020		December 31, 2019
Intangible Lease Assets:
Above-Market In-Place Lease Assets	$	2,227	$	2,082
In-Place Lease Valuation	$	159,643	$	157,101
Intangible Lease Origination Costs (included as component of Deferred Lease Costs)	$	254,856	$	256,627
Intangible Lease Liabilities (Below-Market In-Place Leases)	$	63,205	$	84,292

Amortization Of Intangible Lease Costs

For the three and nine months ended September 30, 2020 and 2019, respectively, Piedmont recognized amortization of intangible lease costs as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Amortization of Intangible Lease Origination Costs and In-Place Lease Valuation included in amortization expense	$	18,522	$	15,881	$	58,674	$	45,057
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues	$	3,147	$	1,923	$	9,423	$	6,009

Future Amortization of Intangible Assets and Liabilities

Net intangible assets and liabilities as of September 30, 2020 will be amortized as follows (in thousands):


	Intangible Lease Assets
	Above-Market In-place Lease Assets		In-Place Lease Valuation		Intangible Lease Origination Costs (1)		Below-Market In-place Lease Liabilities
For the remainder of 2020	$	117	$	7,576	$	10,368	$	2,884
For the years ending December 31:
2021	420		27,635		38,743		10,899
2022	300		20,773		30,527		8,422
2023	103		13,923		21,019		5,139
2024	70		9,141		14,462		3,238
2025	6		5,658		10,069		2,072
Thereafter	18		12,777		24,881		5,670
	$	1,034	$	97,483	$	150,069	$	38,324

Weighted-Average Amortization Period (in years)	3		5		6		5

(1)Included as a component of Deferred Lease Costs in the accompanying consolidated balance sheets.

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of Purchased Assets

Property

Metropolitan Statistical Area

Date of Acquisition

Ownership Percentage Acquired

Rentable Square Feet

Percentage Leased as of Acquisition

Net Contractual Purchase Price(1)(in millions)

Dallas Galleria Office Towers

Dallas, Texas

February 12, 2020

100%

1,435,466

95%

$396.2

(1)Price includes the purchase of an adjacent parcel of approximately 1.9 acres of developable land.

Schedule of Purchase Price Allocation

The purchase price of the Dallas Galleria Office Towers and undeveloped land, inclusive of approximately $0.6 million of closing costs, was allocated as follows:


	Dallas Galleria Office Towers and Undeveloped Land
Land	$	19,674
Building and improvements	293,760
Intangible lease assets (1)	49,177
Lease acquisition costs, net of tenant credits received from seller (1)	1,344
Intangible lease origination costs (1)	55,060
Intangible lease liabilities (1)	(22,169)
Total purchase price	$	396,846

(1)Amortization of in-place lease intangibles and lease acquisition costs are recognized using the straight-line method over approximately 5.2 years, the average remaining life of in-place leases.

Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes the terms of Piedmont’s indebtedness outstanding as of September 30, 2020 and December 31, 2019 (in thousands):


Facility (1)	Stated Rate		Effective Rate (2)			Maturity		Amount Outstanding as of
								September 30, 2020		December 31, 2019
Secured (Fixed)







$35 Million Fixed-Rate Loan (3)	5.55	%	3.75	%		9/1/2021		$	27,976	$	28,687
$160 Million Fixed-Rate Loan (4)	3.48	%	3.58	%		7/5/2022		—		160,000
Net premium and unamortized debt issuance costs								448		343
Subtotal/Weighted Average (5)	5.55	%						28,424		189,030
Unsecured (Variable and Fixed)





Amended and Restated $300 Million Unsecured 2011 Term Loan (6)	LIBOR + 1.00%		1.16	%		11/30/2021		300,000		300,000
$500 Million Unsecured 2018 Line of Credit (6)	LIBOR + 0.90%		—	%		9/30/2022	(7)	—		—
$350 Million Unsecured Senior Notes	3.40	%	3.43	%		6/01/2023		350,000		350,000
$400 Million Unsecured Senior Notes	4.45	%	4.10	%		3/15/2024		400,000		400,000
$250 Million Unsecured 2018 Term Loan	LIBOR + 0.95%		2.08	%	(8)	3/31/2025		250,000		250,000

$300 Million Unsecured Senior Notes	3.15	%	3.90	%	(9)	8/15/2030		300,000		—
Discounts and unamortized debt issuance costs								(11,589)		(7,626)
Subtotal/Weighted Average (5)	2.99	%						1,588,411		1,292,374
Total/Weighted Average (5)	3.03	%						$	1,616,835	$	1,481,404

(1)Other than one mortgage, the $35 Million Fixed-Rate Loan, all of Piedmont’s outstanding debt as of September 30, 2020 and December 31, 2019 is interest-only until maturity.

(2)Effective rate after consideration of settled or in-place interest rate swap agreements, issuance premiums/discounts, and/or fair market value adjustments upon assumption of debt.

(3)Collateralized by the 5 Wall Street building in Burlington, Massachusetts.

(4)Previously collateralized by the 1901 Market Street building in Philadelphia, Pennsylvania.

(5)Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of September 30, 2020.

Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

A detail of Piedmont’s interest rate derivatives outstanding as of September 30, 2020 is as follows:

Interest Rate Derivatives:

Number of Swap Agreements

Associated Debt Instrument

Total Notional Amount
(in millions)

Effective Date

Maturity Date

Interest rate swaps

$250 Million Unsecured 2018 Term Loan

100

3/29/2018

3/31/2025

Schedule of Interest Rate Derivatives

A detail of Piedmont’s interest rate derivatives on a gross and net basis as of September 30, 2020 and December 31, 2019, respectively, is as follows (in thousands):


Interest rate swaps classified as:	September 30, 2020		December 31, 2019
Gross derivative assets	$	—	$	—
Gross derivative liabilities	(10,618)		(5,121)
Net derivative liability	$	(10,618)	$	(5,121)

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)


	Three Months Ended				Nine Months Ended
Interest Rate Swaps in Cash Flow Hedging Relationships	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Amount of loss recognized in OCI	$	(2,443)	$	(1,386)	$	(26,949)	$	(6,874)
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense	$	(810)	$	427	$	(989)	$	1,871


Total amount of Interest Expense presented in the consolidated statements of income	$	(12,725)	$	(16,145)	$	(41,942)	$	(46,750)

Fair Value Measurement of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of September 30, 2020 and December 31, 2019, respectively (in thousands):


	September 30, 2020					December 31, 2019
Financial Instrument	Carrying Value		Estimated Fair Value		Level Within Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Level Within Fair Value Hierarchy
Assets:
Cash and cash equivalents (1)	$	23,958	$	23,958	Level 1	$	13,545	$	13,545	Level 1
Tenant receivables, net of allowance for doubtful accounts (1)	$	11,301	$	11,301	Level 1	$	8,226	$	8,226	Level 1

Restricted cash and escrows (1)	$	1,781	$	1,781	Level 1	$	1,841	$	1,841	Level 1

Liabilities:
Accounts payable and accrued expenses (1)	$	10,874	$	10,874	Level 1	$	50,049	$	50,049	Level 1
Interest rate swaps	$	10,618	$	10,618	Level 2	$	5,121	$	5,121	Level 2
Debt, net	$	1,616,835	$	1,650,928	Level 2	$	1,481,404	$	1,536,687	Level 2

(1)For the periods presented, the carrying value of these financial instruments, net of applicable allowance, approximates estimated fair value due to their short-term maturity.

Assets Held for Sale and Property Disposition (Tables)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Assets Held for Sale


	September 30, 2020		December 31, 2019
Real estate assets held for sale, net:
Land	$	—	$	20,829
Building and improvements, less accumulated depreciation of $0 and $66,823 as of September 30, 2020 and December 31, 2019, respectively	—		112,287
Intangible lease assets, less accumulated amortization of $0 and $27,438 as of September 30, 2020 and December 31, 2019, respectively	—		6,574

Total real estate assets held for sale, net	$	—	$	139,690

Other assets held for sale, net:
Straight-line rent receivables	$	—	$	18,776


Deferred lease costs, less accumulated amortization of $0 and $34,957 as of September 30, 2020 and December 31, 2019, respectively	—		9,425

Total other assets held for sale, net	$	—	$	28,201

Other liabilities held for sale:
Intangible lease liabilities, less accumulated amortization of $0 and $31,959 as of September 30, 2020 and December 31, 2019, respectively	$	—	$	7,657

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Nonvested Share Activity

A rollforward of Piedmont's equity based award activity for the nine months ended September 30, 2020 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Unvested and Potential Stock Awards as of December 31, 2019	1,045,020	$	25.15
Deferred Stock Awards Granted	242,586	$	22.39
Increase in Estimated Potential Share Award based on TSR Performance	26,586	$	27.47
Performance Stock Awards Vested	(153,368)	$	30.45
Deferred Stock Awards Vested	(228,478)	$	21.05
Deferred Stock Awards Forfeited	(6,979)	$	21.82
Unvested and Potential Stock Awards as of September 30, 2020	925,367	$	24.07


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period	$	—	$	—	$	22.39	$	21.02
Total Grant Date Fair Value of Deferred Stock Vested During the Period	$	200	$	—	$	4,808	$	8,658
Share-based Liability Awards Paid During the Period (1)	$	—	$	3,444	$	4,116	$	6,683

Schedule of Outstanding Employee Stock Awards

A detail of Piedmont’s outstanding stock awards as of September 30, 2020 is as follows:


Date of grant	Type of Award	Net Shares Granted (1)	Grant Date Fair Value		Vesting Schedule	Unvested Shares



















May 17, 2018	Deferred Stock Award	250,680	$	17.84	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 17, 2019, 2020, and 2021, respectively.	52,895
May 17, 2018	Fiscal Year 2018-2020 Performance Share Program	—	$	23.52	Shares awarded, if any, will vest immediately upon determination of award in 2021.	200,674	(2)

May 3, 2019	Deferred Stock Award	274,998	$	21.04	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively.	134,173
May 3, 2019	Fiscal Year 2019-2021 Performance Share Program	—	$	29.43	Shares awarded, if any, will vest immediately upon determination of award in 2022.	181,527	(2)
February 19, 2020	Deferred Stock Award	178,309	$	24.41	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively.	143,973
March 19, 2020	Fiscal Year 2020-2022 Performance Share Program	—	$	25.83	Shares awarded, if any, will vest immediately upon determination of award in 2023.	166,345	(2)
May 13, 2020	Deferred Stock Award-Board of Directors	45,780	$	13.76	Of the shares granted, 100% will vest by May 13, 2021.	45,780
Total						925,367

Supplemental Disclosures for the Statement of Consolidated Cash Flows (Tables)

9 Months Ended

Sep. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

Certain non-cash investing and financing activities for the nine months ended September 30, 2020 and 2019, (in thousands) are outlined below:


	Nine Months Ended
	September 30, 2020		September 30, 2019
Accrued capital expenditures and deferred lease costs	$	24,035	$	29,828
Change in accrued dividends and discount on dividend reinvestments	$	(26,427)	$	(26,972)

Change in accrued share repurchases as part of an announced plan	$	—	$	(4,417)
Accrued deferred financing costs	$	130	$	—
Accrued stock issuance costs	$	—	$	441


	2020		2019
Cash and cash equivalents as of January 1, 2020 and 2019, respectively	$	13,545	$	4,571
Restricted cash and escrows as of January 1, 2020 and 2019, respectively	1,841		1,463


Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows	$	15,386	$	6,034

Cash and cash equivalents as of September 30, 2020 and 2019, respectively	$	23,958	$	10,284
Restricted cash and escrows as of September 30, 2020 and 2019, respectively	1,781		1,820


Cash, cash equivalents, and restricted cash and escrows, end of period, as presented in the accompanying consolidated statement of cash flows	$	25,739	$	12,104

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares


	Three Months Ended		Nine Months Ended
	September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
Weighted-average common shares – basic	126,029	125,783	125,955	125,684
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards	356	457	347	506
Weighted-average common shares – diluted	126,385	126,240	126,302	126,190

Organization (Details) ft² in Millions	9 Months Ended
Organization (Details) ft² in Millions	Sep. 30, 2020 ft² property subsidiary segment	Feb. 12, 2020
Segment Reporting, Other Significant Reconciling Item [Line Items]
Number of major U.S. office markets	7
Number of wholly-owned subsidiaries \| subsidiary	2
Number of real estate properties	57
Area of real estate property (in sq ft) \| ft²	17.2
Percentage leased	86.90%	95.00%
Number of operating segments \| segment	1
Piedmont Office Realty Trust, Inc.
Segment Reporting, Other Significant Reconciling Item [Line Items]
Percentage ownership by sole general partner	99.90%
Piedmont Office Holdings, Inc.
Segment Reporting, Other Significant Reconciling Item [Line Items]
Percentage ownership by sole limited partner	0.10%

Summary of Significant Accounting Policies (Schedule of Fixed and Variable Lease Payments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Fixed payments	$ 108,071	$ 105,207	$ 329,281	$ 311,503
Variable payments	20,209	25,372	62,400	70,710
Total Rental and Tenant Reimbursement Revenue	$ 128,280	$ 130,579	$ 391,681	$ 382,213

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Concentration Risk [Line Items]
Operating lease costs			$ 60	$ 60
Weighted-average lease term of right-of-use assets			3 years
Right of use assets weighted-average discount rate	3.35%		3.35%
Accounting Standards Update 2016-02
Concentration Risk [Line Items]
Operating lease costs	$ 20	$ 20

Summary of Significant Accounting Policies (Schedule of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Real Estate Properties [Line Items]
Intangible lease liabilities (below market in-place leases)	$ 63,205	$ 84,292
Above-Market In-Place Lease Assets
Real Estate Properties [Line Items]
Intangible lease assets	2,227	2,082
In-Place Lease Valuation
Real Estate Properties [Line Items]
Intangible lease assets	159,643	157,101
Intangible Lease Origination Costs (included as component of Deferred Lease Costs)
Real Estate Properties [Line Items]
Intangible lease assets	$ 254,856	$ 256,627

Summary of Significant Accounting Policies (Amortization of Lease Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Amortization of Intangible Lease Origination Costs and In-Place Lease Valuation included in amortization expense	$ 18,522	$ 15,881	$ 58,674	$ 45,057
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues	$ 3,147	$ 1,923	$ 9,423	$ 6,009

Summary of Significant Accounting Policies (Future Amortization of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Intangible lease assets, total	$ 98,517	$ 74,405
Below Market Lease, Amortization Income, Maturity Schedule [Abstract]
For the remainder of 2020	2,884
2021	10,899
2022	8,422
2023	5,139
2024	3,238
2025	2,072
Thereafter	5,670
Below market in-place lease liabilities, total	$ 38,324
Below market in-place lease liabilities, weighted average amortization period (in years)	5 years
Above-Market In-Place Lease Assets
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
For the remainder of 2020	$ 117
2021	420
2022	300
2023	103
2024	70
2025	6
Thereafter	18
Intangible lease assets, total	$ 1,034
Below Market Lease, Amortization Income, Maturity Schedule [Abstract]
Intangible lease assets, weighted average amortization period (in years)	3 years
In-Place Lease Valuation
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
For the remainder of 2020	$ 7,576
2021	27,635
2022	20,773
2023	13,923
2024	9,141
2025	5,658
Thereafter	12,777
Intangible lease assets, total	$ 97,483
Below Market Lease, Amortization Income, Maturity Schedule [Abstract]
Intangible lease assets, weighted average amortization period (in years)	5 years
Intangible Lease Origination Costs (included as component of Deferred Lease Costs)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
For the remainder of 2020	$ 10,368
2021	38,743
2022	30,527
2023	21,019
2024	14,462
2025	10,069
Thereafter	24,881
Intangible lease assets, total	$ 150,069
Below Market Lease, Amortization Income, Maturity Schedule [Abstract]
Intangible lease assets, weighted average amortization period (in years)	6 years

Acquisitions (Additional Information) (Details)	Feb. 12, 2020 USD ($) ft² a	Sep. 30, 2020 USD ($) ft² property
Property, Plant and Equipment [Line Items]
Rentable square feet (in sq ft) \| ft²		17,200,000
Percentage leased as of acquisition	95.00%	86.90%
$500 Million Unsecured 2018 Line of Credit \| Unsecured Debt
Property, Plant and Equipment [Line Items]
Face amount of debt instrument		$ 500,000,000
Dallas Galleria Office Towers
Property, Plant and Equipment [Line Items]
Number of properties acquired \| property		3
Ownership percentage acquired	100.00%
Rentable square feet (in sq ft) \| ft²	1,435,466
Net contractual purchase price	$ 396,200,000
Area of land acquired (in acres) \| a	1.9
Closing costs	$ 600,000

Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Feb. 12, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Land	$ 505,228		$ 485,560
Dallas Galleria Office Towers
Property, Plant and Equipment [Line Items]
Land		$ 19,674
Building and improvements		293,760
Intangible lease assets		49,177
Lease acquisition costs, net of tenant credits received from seller		1,344
Intangible lease organization costs		55,060
Intangible lease liabilities		(22,169)
Total purchase price		$ 396,846
Acquired intangible assets, remaining amortization period	5 years 2 months 12 days

Debt (Narrative) (Details)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
Debt (Narrative) (Details)	Aug. 31, 2020 USD ($)	Sep. 30, 2020 USD ($) contract	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) contract	Sep. 30, 2019 USD ($)	Dec. 31, 2019
Debt Instrument [Line Items]
Loss on early extinguishment of debt		$ 0	$ 0	$ 9,336,000	$ 0
Interest paid		12,800,000	17,800,000	41,800,000	49,700,000
Interest costs capitalized		$ 200,000	$ 500,000	$ 600,000	$ 1,600,000
Forward starting interest rate swaps
Debt Instrument [Line Items]
Number of swap agreements \| contract		4		4
Notional amount of interest rate swap agreements		$ 200,000,000		$ 200,000,000
Cash paid to settle interest rate swap agreements	$ 19,900,000
Unsecured Debt \| $300 Million Unsecured 2020 Term Loan
Debt Instrument [Line Items]
Face amount of debt instrument		300,000,000		300,000,000
$300 Million 2020 Senior Notes \| Unsecured Debt
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000	300,000,000		$ 300,000,000
Stated rate (percent)	3.15%
Proceeds from issuance of debt	$ 297,700,000
Debt instrument, discount	$ 2,300,000
Debt instrument, term	10 years
Debt instrument, redemption price, percentage				100.00%
$250 Million Unsecured 2018 Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.95%		1.60%
$250 Million Unsecured 2018 Term Loan \| Unsecured Debt
Debt Instrument [Line Items]
Face amount of debt instrument		250,000,000		$ 250,000,000
$250 Million Unsecured 2018 Term Loan \| Unsecured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.95%
$160 Million Fixed Rate Loan \| Secured Debt
Debt Instrument [Line Items]
Face amount of debt instrument		$ 160,000,000		$ 160,000,000
Stated rate (percent)		3.48%		3.48%
$500 Million Unsecured 2018 Line of Credit \| Unsecured Debt
Debt Instrument [Line Items]
Face amount of debt instrument		$ 500,000,000		$ 500,000,000
$500 Million Unsecured 2018 Line of Credit \| Unsecured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.90%

Debt (Schedule of Debt) (Details)	9 Months Ended	12 Months Ended
Debt (Schedule of Debt) (Details)	Sep. 30, 2020 USD ($) extension	Dec. 31, 2019 USD ($)	Aug. 31, 2020 USD ($)
Debt Instrument [Line Items]
Weighted average rate (percent)	3.03%
Amount outstanding	$ 1,616,835,000	$ 1,481,404,000
$250 Million Unsecured 2018 Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.95%	1.60%
Secured Debt
Debt Instrument [Line Items]
Weighted average rate (percent)	5.55%
Amount outstanding	$ 28,424,000	$ 189,030,000
Net premium (discounts) and unamortized debt issuance costs	448,000	343,000
Secured Debt \| $35 Million Fixed-Rate Loan
Debt Instrument [Line Items]
Face amount of debt instrument	$ 35,000,000	35,000,000
Stated rate (percent)	5.55%
Effective interest rate (percent)	3.75%
Amount outstanding	$ 27,976,000	28,687,000
Secured Debt \| $160 Million Fixed Rate Loan
Debt Instrument [Line Items]
Face amount of debt instrument	$ 160,000,000
Stated rate (percent)	3.48%
Effective interest rate (percent)	3.58%
Amount outstanding	$ 0	160,000,000
Unsecured Debt
Debt Instrument [Line Items]
Weighted average rate (percent)	2.99%
Amount outstanding	$ 1,588,411,000	1,292,374,000
Net premium (discounts) and unamortized debt issuance costs	(11,589,000)	(7,626,000)
Unsecured Debt \| Amended and Restated $300 Million Unsecured 2011 Term Loan
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000
Effective interest rate (percent)	1.16%
Amount outstanding	$ 300,000,000	300,000,000
Unsecured Debt \| Amended and Restated $300 Million Unsecured 2011 Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.00%
Unsecured Debt \| $500 Million Unsecured 2018 Line of Credit
Debt Instrument [Line Items]
Face amount of debt instrument	$ 500,000,000
Maximum extension period (in years)	1 year
Number of extension periods \| extension	2
Extension period (in months)	6 months
Unsecured Debt \| $500 Million Unsecured 2018 Line of Credit \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.90%
Unsecured Debt \| $500 Million Unsecured 2018 Line of Credit \| Line of Credit
Debt Instrument [Line Items]
Effective interest rate (percent)	0.00%
Amount outstanding	$ 0	0
Unsecured Debt \| $350 Million Unsecured Senior Notes
Debt Instrument [Line Items]
Face amount of debt instrument	$ 350,000,000
Stated rate (percent)	3.40%
Effective interest rate (percent)	3.43%
Amount outstanding	$ 350,000,000	350,000,000
Unsecured Debt \| $400 Million Unsecured Senior Notes
Debt Instrument [Line Items]
Face amount of debt instrument	$ 400,000,000
Stated rate (percent)	4.45%
Effective interest rate (percent)	4.10%
Amount outstanding	$ 400,000,000	400,000,000
Unsecured Debt \| $250 Million Unsecured 2018 Term Loan
Debt Instrument [Line Items]
Face amount of debt instrument	$ 250,000,000
Effective interest rate (percent)	2.08%
Amount outstanding	$ 250,000,000	250,000,000
Interest rate on derivative instrument	3.56%
Unsecured Debt \| $250 Million Unsecured 2018 Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.95%
Unsecured Debt \| $300 Million 2020 Senior Notes
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000		$ 300,000,000
Stated rate (percent)			3.15%
Effective interest rate (percent)	3.90%		3.24%
Amount outstanding	$ 300,000,000	$ 0
Interest rate swaps \| $250 Million Unsecured 2018 Term Loan
Debt Instrument [Line Items]
Notional amount of interest rate swap agreements	$ 100,000,000

Derivative Instruments (Narrative) (Details)	1 Months Ended	9 Months Ended
Derivative Instruments (Narrative) (Details)	Aug. 31, 2020 USD ($)	Sep. 30, 2020 USD ($) contract
Derivative [Line Items]
Maximum period of extension term		54 months
Gain (loss) to be reclassified		$ 2,900,000
Assets needed for immediate settlement, aggregate fair value		11,000,000.0
$300 Million 2020 Senior Notes \| Unsecured Debt
Derivative [Line Items]
Face amount of debt instrument	$ 300,000,000	300,000,000
Debt instrument, term	10 years
$250 Million Unsecured 2018 Term Loan \| Unsecured Debt
Derivative [Line Items]
Face amount of debt instrument		250,000,000
Piedmont OP \| $300 Million 2020 Senior Notes \| Unsecured Debt
Derivative [Line Items]
Face amount of debt instrument		$ 300,000,000
Debt instrument, term		10 years
Forward starting interest rate swaps
Derivative [Line Items]
Number of swap agreements \| contract		4
Notional amount of interest rate swap agreements		$ 200,000,000
Cash paid to settle interest rate swap agreements	$ 19,900,000
Interest rate swaps \| $250 Million Unsecured 2018 Term Loan
Derivative [Line Items]
Number of swap agreements \| contract		2
Notional amount of interest rate swap agreements		$ 100,000,000
Interest rate swaps \| $250 Million Unsecured 2018 Term Loan \| Unsecured Debt
Derivative [Line Items]
Face amount of debt instrument		250,000,000
Hedged portion of long-term debt		$ 100,000,000

Derivative Instruments (Details)	3 Months Ended		9 Months Ended
Derivative Instruments (Details)	Sep. 30, 2020 USD ($) contract	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) contract	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Interest rate swaps classified as:
Gross derivative assets	$ 0		$ 0		$ 0
Gross derivative liabilities	(10,618,000)		(10,618,000)		(5,121,000)
Net derivative liability	(10,618,000)		(10,618,000)		$ (5,121,000)
Amount of loss recognized in OCI	(2,443,000)	$ (1,386,000)	(26,949,000)	$ (6,874,000)
Total amount of Interest Expense presented in the consolidated statements of income	(12,725,000)	(16,145,000)	(41,942,000)	(46,750,000)
Interest rate swaps
Interest rate swaps classified as:
Total amount of Interest Expense presented in the consolidated statements of income	(12,725,000)	(16,145,000)	(41,942,000)	(46,750,000)
Interest rate swaps \| Interest Expense
Interest rate swaps classified as:
Amount of loss recognized in OCI	(2,443,000)	(1,386,000)	(26,949,000)	(6,874,000)
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense	(810,000)	$ 427,000	(989,000)	$ 1,871,000
$250 Million Unsecured 2018 Term Loan \| Unsecured Debt
Derivative [Line Items]
Face amount of debt instrument	$ 250,000,000		$ 250,000,000
$250 Million Unsecured 2018 Term Loan \| Interest rate swaps
Derivative [Line Items]
Number of swap agreements \| contract	2		2
Notional amount	$ 100,000,000		$ 100,000,000
$250 Million Unsecured 2018 Term Loan \| Interest rate swaps \| Unsecured Debt
Derivative [Line Items]
Face amount of debt instrument	$ 250,000,000		$ 250,000,000

Fair Value Measurement of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	$ 10,618	$ 5,121
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	23,958	13,545
Restricted cash and escrows	1,781	1,841
Accounts payable and accrued expenses	10,874	50,049
Debt, net	1,616,835	1,481,404
Tenant receivables, net of allowance for doubtful accounts \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Receivables	11,301	8,226
Level 1 \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	23,958	13,545
Restricted cash and escrows	1,781	1,841
Accounts payable and accrued expenses	10,874	50,049
Level 1 \| Tenant receivables, net of allowance for doubtful accounts \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Receivables	11,301	8,226
Level 2 \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, net	1,650,928	1,536,687
Interest rate swaps \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	10,618	5,121
Interest rate swaps \| Level 2 \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	$ 10,618	$ 5,121

Commitments and Contingencies (Details) ft² in Thousands	3 Months Ended		9 Months Ended
Commitments and Contingencies (Details) ft² in Thousands	Sep. 30, 2020 USD ($) ft² Joint_Venture numberOfTenants	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) ft² Joint_Venture numberOfTenants	Sep. 30, 2019 USD ($)
Loss Contingencies [Line Items]
Number of unrecorded tenant allowance commitments \| Joint_Venture	1		1
Unrecorded tenant allowance commitment	$ 44,000,000.0		$ 44,000,000.0
Unrecorded tenant allowance renewal term			20 years
Unrecorded tenant allowance expansion area (in sq. ft) \| ft²	520		520
Contingencies Related to COVID-19 Pandemic
Loss Contingencies [Line Items]
Number of tenants with lease modification agreements \| numberOfTenants	60		60
Current year revenue deferred due to lease modification agreements			$ 6,700,000
Charges against lease income, general reserves			4,800,000
Collectibility of Tenant Reimbursements
Loss Contingencies [Line Items]
Reductions in reimbursement revenues	$ 0	$ 0	$ 0	$ 0

Assets Held for Sale and Property Disposition (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2020 USD ($)	Sep. 30, 2020 USD ($) property	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) property	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties held for sale \| property		0		0
Impairment loss on real estate assets		$ 0	$ 1,953	$ 0	$ 1,953
Accumulated amortization (intangible lease assets)		63,353		63,353		$ 50,766
Total other assets held for sale, net		0		0		28,201
Intangible lease liabilities, less accumulated amortization of $0 and $31,959 as of September 30, 2020 and December 31, 2019, respectively		0		0		7,657
Intangible lease liabilities, accumulated amortization		24,881		24,881		19,607
1901 Market Street
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of property	$ 350,800
Gain on sale of real estate assets	$ 191,000
The Dupree
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment loss on real estate assets					$ 2,000
Disposal Group, Held-for-sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate assets held for sale, net		0		0		139,690
Straight-line rent receivables		0		0		18,776
Deferred lease costs, less accumulated amortization of $0 and $34,957 as of September 30, 2020 and December 31, 2019, respectively		0		0		9,425
Accumulated amortization on deferred lease costs		0		0		34,957
Total other assets held for sale, net		0		0		28,201
Intangible lease liabilities, less accumulated amortization of $0 and $31,959 as of September 30, 2020 and December 31, 2019, respectively		0		0		7,657
Intangible lease liabilities, accumulated amortization		0		0		31,959
Disposal Group, Held-for-sale, Not Discontinued Operations \| Intangible lease assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Intangible lease assets, less accumulated amortization of $0 and $27,438 as of September 30, 2020 and December 31, 2019, respectively		0		0		6,574
Accumulated amortization (intangible lease assets)		0		0		27,438
Disposal Group, Held-for-sale, Not Discontinued Operations \| Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Real estate assets held for sale, net		0		0		20,829
Disposal Group, Held-for-sale, Not Discontinued Operations \| Building and building improvements
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Real estate assets held for sale, net		0		0		112,287
Accumulated depreciation (building improvements)		$ 0		$ 0		$ 66,823

Stock Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense related to stock awards	$ 1.4	$ 3.8	$ 7.0	$ 12.0
Amortization of unvested shares			$ 5.8	$ 10.5
Total shares issued to employees, directors, and officers (in shares)			245,354
Unrecognized compensation cost related to nonvested	$ 7.5		$ 7.5
Weighted Average
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested, weighted-average vesting period			1 year
Independent Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year

Stock Based Compensation (Rollforward of Stock Awards) (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Shares
Increase in estimated potential share award based on TSR performance (in shares)			26,586
Unvested and potential stock awards, end of period (in shares)	925,367		925,367
Weighted-Average Grant Date Fair Value
Increase in estimated potential share award (in dollars per share)			$ 27.47
Stock Awards
Shares
Unvested and potential stock awards, beginning of period (in shares)			1,045,020
Unvested and potential stock awards, end of period (in shares)	925,367		925,367
Weighted-Average Grant Date Fair Value
Unvested and potential stock awards, beginning of period (in dollars per share)			$ 25.15
Unvested and potential stock awards, end of period (in dollars per share)	$ 24.07		$ 24.07
Deferred Stock Awards
Shares
Deferred stock awards granted (in shares)			242,586
Stock awards vested (in shares)			(228,478)
Deferred stock awards forfeited (in shares)			(6,979)
Weighted-Average Grant Date Fair Value
Deferred stock awards granted (in dollars per share)	$ 0	$ 0	$ 22.39	$ 21.02
Stock awards vested (in dollars per share)			21.05
Deferred stock awards forfeited (in dollars per share)			$ 21.82
Performance Share Awards
Shares
Stock awards vested (in shares)			(153,368)
Weighted-Average Grant Date Fair Value
Stock awards vested (in dollars per share)			$ 30.45

Stock Based Compensation (Additional Information Regarding Stock Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Deferred Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period (in dollars per share)	$ 0	$ 0	$ 22.39	$ 21.02
Total Grant Date Fair Value of Deferred Stock Vested During the Period	$ 200	$ 0	$ 4,808	$ 8,658
Performance Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Liability Awards Paid During the Period	$ 0	$ 3,444	$ 4,116	$ 6,683

Stock Based Compensation (Outstanding Employee Stock Awards) (Details) - $ / shares	May 13, 2020	Feb. 19, 2020	May 03, 2019	May 17, 2018	Sep. 30, 2020	Mar. 19, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares (in shares)					925,367
Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value (in dollars per share)					$ 24.07		$ 25.15
Unvested shares (in shares)					925,367		1,045,020
Deferred Stock Awards \| Deferred Stock Award, Granted May 17, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)				250,680
Grant date fair value (in dollars per share)				$ 17.84
Unvested shares (in shares)					52,895
Deferred Stock Awards \| Deferred Stock Award, Granted May 17, 2018 \| Year 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 17, 2018 \| Year 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 17, 2018 \| Year 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 17, 2018 \| Year 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 3, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)			274,998
Grant date fair value (in dollars per share)			$ 21.04
Unvested shares (in shares)					134,173
Deferred Stock Awards \| Deferred Stock Award, Granted May 3, 2019 \| Year 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 3, 2019 \| Year 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 3, 2019 \| Year 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 3, 2019 \| Year 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted February 19, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)		178,309
Grant date fair value (in dollars per share)		$ 24.41
Unvested shares (in shares)					143,973
Deferred Stock Awards \| Deferred Stock Award, Granted February 19, 2020 \| Year 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted February 19, 2020 \| Year 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted February 19, 2020 \| Year 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted February 19, 2020 \| Year 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
Deferred Stock Awards \| Deferred Stock Award, Granted May 13, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)	45,780
Grant date fair value (in dollars per share)	$ 13.76
Vesting percentage	100.00%
Unvested shares (in shares)					45,780
Performance Share Awards \| Performance Share Program Award, Granted May 17, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)				0
Grant date fair value (in dollars per share)				$ 23.52
Unvested shares (in shares)					200,674
Performance Share Awards \| Performance Share Program Award, Granted May 3, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)			0
Grant date fair value (in dollars per share)			$ 29.43
Unvested shares (in shares)					181,527
Performance Share Awards \| Performance Share Program Award, Granted March 19, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net Shares Granted (in shares)						0
Grant date fair value (in dollars per share)						$ 25.83
Unvested shares (in shares)					166,345

Supplemental Disclosures for the Statement of Consolidated Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Accrued capital expenditures and deferred lease costs	$ 24,035	$ 29,828
Change in accrued dividends and discount on dividend reinvestments	(26,427)	(26,972)
Change in accrued share repurchases as part of an announced plan	0	(4,417)
Accrued deferred financing costs	130	0
Accrued stock issuance costs	0	441
Cash and cash equivalents	23,958	10,284	$ 13,545	$ 4,571
Restricted cash and escrows	1,781	1,820	1,841	1,463
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows	$ 25,739	$ 12,104	$ 15,386	$ 6,034

Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
Earnings Per Share (Details) - shares	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Anti-dilutive shares excluded (in shares)	310,425	344	262,165	134,221
Weighted-average common shares – basic (in shares)	126,028,762	125,783,408	125,955,097	125,684,202
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards (in shares)	356,000	457,000	347,000	506,000
Weighted-average common shares – diluted (in shares)	126,385,035	126,239,744	126,302,051	126,189,851

Subsequent Events (Details) $ / shares in Units, ft² in Thousands, $ in Millions		1 Months Ended
	Oct. 28, 2020 $ / shares	Oct. 29, 2020 USD ($) ft² property $ / ft²	Sep. 30, 2020 ft²
Subsequent Event [Line Items]
Area of real estate property (in sq ft) \| ft²			17,200
Subsequent Event
Subsequent Event [Line Items]
Common stock dividends (in dollars per share) \| $ / shares	$ 0.21
Subsequent Event \| 222 South Orange Avenue Building
Subsequent Event [Line Items]
Area of real estate property (in sq ft) \| ft²		127
Payments to acquire real estate property \| $		$ 20
Payments to acquire real estate property (in dollars per sq ft) \| $ / ft²		157
Subsequent Event \| New Jersey Assets
Subsequent Event [Line Items]
Number of assets disposed of \| property		3
Proceeds from sale of property \| $		$ 130
Proceeds from sale of real estate, proceeds (in dollars per sq ft) \| $ / ft²		176