Common use of Development Activity Clause in Contracts

Development Activity. The Company shall not, and shall not permit any of its Subsidiaries or any Permitted Partnership to, engage in real estate development activity other than projects involving at any time aggregate acquisition, development and construction costs, determined on a GAAP basis before depreciation, not to exceed at any time an amount equal to twenty percent (20%) of the consolidated assets of the Company and any Permitted Partnerships at such time; provided, however, that no individual project shall involve at any time aggregate acquisition, development and construction costs, determined on a GAAP basis before depreciation, in excess of five percent (5%) of the amount of the consolidated assets of the Company and any Permitted Partnerships. For purposes of this Section 7.15, real estate development activity begins when the Company, any Subsidiary or any Permitted Partnership first incurs costs relating to a project, and ends when (i) such project has received a certificate of occupancy or equivalent approval for the shell and core and (ii) more than eighty percent (80%) of the net rentable area of such project is covered by signed leases with third-party tenants having remaining terms of three (3) years or longer.