Summary
CME Group Inc. (CME) has filed an 8-K report on August 29, 2007, detailing a significant new office lease agreement for its headquarters. Effective August 24, 2007, CME's subsidiary, Chicago Mercantile Exchange Inc., entered into a new lease for approximately 360,000 square feet of space at 20 South Wacker Drive, Chicago, Illinois. This lease was executed concurrently with the sale of the CME Center and trading floors by the CME Trust to Tishman Speyer. This lease agreement solidifies CME's primary office location through 2022, with options to extend. The filing also outlines CME's strategic plan to unify its trading floors at 141 West Jackson by the second quarter of 2008, with the lower trading floor at 20 South Wacker to be converted into office space. While CME will vacate the upper trading floor, it retains an option to lease this space as well. This move is part of the integration following CME's merger with CBOT Holdings, Inc.
Key Highlights
- 1CME Group Inc. entered into a new 15-year lease for its headquarters at 20 South Wacker Drive, Chicago, effective August 24, 2007.
- 2The lease covers approximately 360,000 square feet of office, lobby, and support space, including the lower trading floor.
- 3The lease agreement is linked to Tishman Speyer's acquisition of the CME Center and trading floors from the CME Trust.
- 4CME plans to consolidate its trading operations at 141 West Jackson by Q2 2008.
- 5The lower trading floor at 20 South Wacker will be converted to office space after the consolidation.
- 6CME retains an option to lease the upper trading floor at 20 South Wacker as office space.
- 7The initial lease term extends to 2022, with options for two further extensions (7 and 10 years).