Chicago REIT terminates Andersen lease

The Enron fiasco continues to plague a stressed national office market. Chicago-based office REIT Prime Group Realty Trust has terminated anchor tenant Andersen’s 579,980 sq. ft. lease at Chicago’s 33 W.Monroe St. for a $32.4 million fee. Prior to the Enron scandal, Prime Group Realty Trust relied on Andersen for nearly 10% of its revenues. The doomed auditor was the REIT’s single-largest tenant, based on total square footage leased.

In April 2000, Andersen leased 131,000 sq. ft. at 180 North LaSalle St., another Prime Group building in Chicago. The lease consolidated several of Andersen’s downtown Chicago offices into one building. Michael Young, managing partner of Andersen’s United States Facilities & Services, at the time said the move was "designed to suit the dynamic nature of our business."

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