The Enron Effect

The collapse of Enron is having an impact on San Diego's own TrizecHahn USA Corp. "Enron is our fourth largest tenant," according to a disclosure report filed by the office building owner last month, "occupying 793,000 square feet, primarily at the Allen Center in Houston, Texas." But that may be good news. "Enron's average in-place net rent was approximately $9.30 per square foot, while estimated market rents for the space were approximately $15 per square foot. At this time, we expect Enron will reject its leases with us. The impact on our property operating income will depend on how quickly we are able to re-lease this space."