12. COMMITMENTS AND CONTINGENCIES Lease Commitments  ESH REIT is a tenant under long-term ground leases at four of its hotel properties. The initial terms of the ground lease agreements terminate at various dates between 2016 and 2096, and most leases include multiple renewal options for generally five or 10 year periods. Ground lease expense is included in hotel operating expenses in the accompanying consolidated statements of operations. Prior to the Pre-IPO Transactions, HVM executed a lease for office space in Charlotte, North Carolina, in conjunction with the relocation of its corporate headquarters (see Note 13.) The lease was assumed by ESA Management as part of the Pre-IPO Transactions. The lease is an operating lease with an initial term through August 2021. Office lease expense is included in general and administrative expenses in the accompanying consolidated statements of operations for periods through the Pre-IPO Transactions, due to the fact that HVM was a consolidated variable interest entity. Rent expense on office and ground leases is recognized on a straight-line basis and was approximately $1.6 million, $3.0 million and $3.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. Future minimum lease payments under operating leases as of December 31, 2014, are as follows (in thousands): Years Ending December 31, 2015 $ 712 2016 729 2017 750 2018 771 2019 775 Thereafter 82,381 Total $ 86,118 Other Commitments  ESH REIT has a commitment to make quarterly payments in lieu of taxes to the owner of the land on which one of its properties is located. The initial term of the agreement terminates in 2031. The cost related to this commitment was approximately $0.3 million for each of the years ended December 31, 2014, 2013 and 2012, and is included in hotel operating expenses in the accompanying consolidated statements of operations. Legal Contingencies  ESH REIT is not a party to any litigation or claims other than routine matters arising in the ordinary course of business that are