.jpg)
CME Group, the world's largest and most diverse exchange, Chicago Mercantile Exchange Trust (CME Trust) and Tishman Speyer today announced new real estate agreements for property in The Chicago Mercantile Exchange Center, located at 20 S. Wacker.
CME Group has extended its lease of the 20 S. Wacker facility, occupying office space in both the north and south towers of the complex through 2022. CME Group's headquarters has been located at 20 S. Wacker since 1983, and its current lease would have expired in November 2008. The new lease allows CME Group to maintain its world headquarters at 20 S. Wacker in approximately 360,000 square feet. CME Group has also expanded into new office space located at 550 W. Washington in downtown Chicago, as well as the historic Chicago Board of Trade Building at 141 W. Jackson.
"CME Group continues to be committed to Chicago and its thriving business community," said CME Group Executive Chairman Terry Duffy. "Our company's space needs have changed as our business has evolved, and our new lease with Tishman Speyer provides a great foundation as we continue to expand and diversify our presence -- in Chicago and worldwide."
"As a leading global financial services and technology company, CME Group's real estate strategy must provide us with long-term flexibility and cost effectiveness," said CME Group CEO Craig S. Donohue. "Our new lease with Tishman Speyer provides the means to manage our real estate expenses at the same time that we secure the best possible workspace for our employees and our growing business."
"We are very pleased to extend our relationship with CME Group, a leader in Chicago business as well as the global finance industry," said Casey Wold, Senior Managing Director of Tishman Speyer's Midwest Region. "Our new lease provides CME Group with the means to meet their near-term and long-term business needs in a premier property in the heart of Chicago's financial district."
CME Trust and Tishman Speyer also announced today that CME Trust, an independent for-profit Illinois trust separate from CME Group, has sold the trading floors to Tishman Speyer. Terms of the deal were not disclosed. The sale of the trading floors will not have any impact on CME Group's occupancy of the trading floors at 20 S. Wacker. As previously announced in conjunction with the CME/CBOT merger, CME Group will continue to operate trading floors at both 20 S. Wacker and 141 W. Jackson until the second-quarter 2008 when CME Group will unify its trading floors at 141 W. Jackson.
"This agreement with Tishman Speyer enables the CME Trust to divest its real estate holdings and continue to invest its net income in support of its charitable mission and to continue its original function, to provide financial protection to customers in the event a CME member firm became insolvent or unable to meet its obligations to its customers," explained CME Trust Executive Director Kassie Davis. "On an annual basis, we will strive to contribute approximately $3 million to public charities that promote teaching and learning specific to financial markets, education of disadvantaged children and health and well-being of children."
Following the completion of the trading floor unification at 141 W. Jackson, Tishman Speyer will convert the current lower trading floor of 20 S. Wacker into office space for CME Group. Extensive renovations to update the office space and amenities of the building will ensure that the office space is more efficient going forward.
"After evaluating the CME Center extensively, we are excited that CME Group will benefit from a complete redevelopment of the existing space to retain its world headquarters at 20 S. Wacker," said Holly Duran, Principal of Holly Duran Real Estate Partners, LLC, who negotiated the transaction on behalf of CME Group. "Tishman Speyer has been very receptive to our creative, strategic approach to enhance the base building infrastructure while transforming the use of the trading floor and adjacent space. The new lease provides for significant upgrades to the building while also enabling CME Group to maintain cost- and energy-efficient office space and a world-class, technology-enabled headquarters."
Fujikawa Johnson Gobel Architects, the original architect of the Chicago Mercantile Exchange Center in the early 1980s, is the architect for this project, with OWP/P providing space planning/interior architectural services.
Holly Duran and Rich Schulz of Holly Duran Real Estate Partners, LLC, served as CME Group's real estate advisor. Jim Rosenbloom and Gary Ruben of the law firm of Goldberg Kohn represented CME Group. Both firms have more than 25 years of experience handling CME Group real estate matters.
U.S. Equities Realty served as CME Trust's real estate advisor. Eric Schiller of Sonnenschein Nath & Rosenthal LLP served as CME Trust's real estate counsel.
