v3.25.4
Deferred Costs, Acquired Lease Intangibles and Goodwill
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Deferred Costs, Acquired Lease Intangibles and Goodwill Deferred Costs, Acquired Lease Intangibles and Goodwill
Deferred costs, net, consisted of the following:
(amounts in thousands)December 31, 2025December 31, 2024
Deferred leasing costs$227,722 $230,836 
Acquired in-place lease value, acquired deferred leasing costs and deferred acquisition costs190,570 137,580 
Acquired above-market leases57,569 19,636 
Total deferred costs, excluding deferred financing costs475,861 388,052 
Less: accumulated amortization(214,917)(212,972)
Total deferred costs, net, excluding net deferred financing costs260,944 175,080 
Deferred financing costs, net of accumulated amortization of $9,900 and $7,783, respectively (See Note 5)
6,738 8,907 
Total deferred costs, net$267,682 $183,987 
Acquired below-market ground leases, net, consisted of the following:
(amounts in thousands)December 31, 2025December 31, 2024
Acquired below-market ground leases$396,916 $396,916 
Less: accumulated amortization(91,337)(83,506)
Acquired below-market ground leases, net$305,579 $313,410 
Acquired below-market leases, net, consisted of the following:    
(amounts in thousands)December 31, 2025December 31, 2024
Acquired below-market leases$(81,539)$(56,359)
Less: accumulated amortization41,772 36,862 
Acquired below-market leases, net$(39,767)$(19,497)
The total amortization related to deferred costs and acquired lease intangibles consisted of the following:
Year Ended December 31,
(amounts in thousands)202520242023
Rental revenue:
Amortization of below-market leases, net of above-market leases$3,196 $2,177 $2,415 
Depreciation and amortization:
Amortization of deferred leasing costs and acquired deferred leasing costs21,179 22,469 23,612 
Amortization related to acquired in-place lease value5,794 5,196 7,421 
The remaining weighted-average amortization periods as of December 31, 2025 are:
Weighted-average amortization period
Below-market ground leases41.7 years
Above-market leases11.7 years
In-place leases and deferred leasing costs10.5 years
Below-market leases7.3 years
We expect to recognize amortization expense and rental revenue from the acquired intangible assets and liabilities as follows (amounts in thousands):
For the year ending:Future Ground Rent AmortizationFuture Amortization ExpenseFuture (Above)/Below-Market Rent Revenue Amortization
2026$7,831 $11,329 $1,856 
20277,831 10,472 1,495 
20287,831 9,692 1,304 
20297,831 7,586 460 
20307,831 5,295 465 
Thereafter266,424 34,750 (9,173)
$305,579 $79,124 $(3,593)
As of December 31, 2025, we had goodwill of $491.5 million. In 2013, we acquired the interests in Empire State Building Company, L.L.C. and 501 Seventh Avenue Associates, L.L.C. for an amount in excess of their net tangible and identified intangible assets and liabilities and as a result we recorded goodwill related to the transaction. Goodwill was allocated $227.5 million to the Observatory operations of the Empire State Building, $250.8 million to Empire State Building, and $13.2 million to 501 Seventh Avenue.