Source: Chicage Mercantile Exchange (CME)
CME, the world's largest and most diverse financial exchange, today announced that it will increase its presence in Chicago to include a new operations facility at 550 W. Washington in the city's West Loop, owned by Trizec Properties, Inc.
CME will maintain its lease for its headquarters at Chicago Mercantile Exchange Center on Wacker Drive in Chicago. The company also will continue to maintain its trading floor facilities at that same location, pursuant to an existing long-term lease agreement with the CME Trust.
"Our real estate strategy is part of a long-term vision designed to allow CME to achieve flexibility as we continue to grow as a leading global financial services and technology company," said CME Chairman Terry Duffy. "We are proud of our more than 108-year history in the city of Chicago, and we continue to be committed to the city's growing business community."
"With this new facility, CME will reduce its projected spending on real estate by nearly $80 million over the next 17 years, as well as continue to diversify our physical operations and enhance the quality of our workspace for all CME employees," said CME CEO Craig Donohue. "This expansion and diversification of our workspace is in keeping with our rapid growth as a financial technology company and our recent recognition by Computerworld Magazine as one of the top 100 places to work in technology."
CME currently employs nearly 1,500 employees in its Chicago, Washington D.C., London, Hong Kong, Tokyo and Sydney offices. The company has been recognized as one of Computerworld Magazine's 100 Best Places to Work in IT and also as one of the Best and Brightest Companies to Work for in Chicago.
"I am delighted to see CME expand its operation here in Chicago. This will create more local jobs and keep us competitive in the global market," said Mayor Richard M. Daley. "I look forward to working together for continued economic and financial growth in our City."
CME's new lease provides for over 200,000 square feet at 550 W. Washington. The company plans to start taking occupancy in the second quarter of 2007 and, by 2010, plans to locate 60 percent of its workforce at 550 W. Washington. CME's lease for 550 W. Washington extends to 2023, and financial terms of the lease were not disclosed. CME's real estate expenses will increase as its business grows, but projected expenses are expected to be reduced over the long term as a result of this new lease.
"We are delighted to enter into this new relationship with CME, one of the leading companies in Chicago and in the global finance industry. Our new lease with CME signifies the completion of a collaborative effort among customer, tenant representative broker and landlord to create a well-timed, operationally sophisticated space that would suit CME's current and future business needs," said Tim Callahan, President and Chief Executive Officer of Trizec Properties, Inc. "Our ability to create a viable solution, while demonstrating our commitment to operational excellence and the integrity of the building systems in place at 550 W. Washington, ultimately made this the right fit for CME."
Holly Duran, Jason Schulz and Rich Schulz of Holly Duran Real Estate Partners, LLC, CME's real estate advisor, and James B. Rosenbloom, partner of Goldberg Kohn, Bell, Black, Rosenbloom & Moritz Ltd., CME's real estate counsel, represented CME. Both firms have more than 25 years of experience handling CME real estate matters. OWP/P served as architectural counsel.