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CME Group |
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Relationship: HDREP has been the exclusive representative and outsourced real estate provider for CME since 1980 for the largest futures exchange in the U.S. through a multitude of changes in CME management.
Assignment 1:
Relocation - When the CME was faced in 1980 with a headquarters lease expiration at Chicago’s 440 West Jackson, a building that could no longer provide the required trading floor and office space, nor the advanced technology, HDREP was asked to find a solution.
Result: HDREP evaluated available development opportunities and negotiated a major equity participation, trading floor rights and expansion options in the award-winning, $500 million Mercantile Exchange Center at 10 and 30 South Wacker Drive.
Assignment 2:
Expansion - The CME has engaged HDREP to assist with repeated expansion requirements.
Results: In 1998, HDREP negotiated an expansion of the CME Headquarters facility for an additional 200,000 square feet.
Assignment 3:
Renegotiation - Would trading begin to transition from open outcry to electronic? New leadership at the CME faced this issue in 2002 and questioned the economic wisdom of continuing to house all of its functions in a Class A office building. CME’s 10 & 30 South Wacker landlord viewed the tenant as “captive” and was therefore inflexible. The CME again turned to HDREP for consulting services.
Result: HDREP engaged architects, space planners, contractors, lawyers and other consultants to interview CME executives; conduct demographic and transportation studies; by which it was determined that half of CME’s office space could be relocated; identified more cost-effective locations nearby. Using this alternative as leverage, HDREP negotiated, with the previously intractable landlord, a competitive short term lease with long term flexibility and a high-profile private entrance for the CME Headquarters facility on Wacker Drive.
Assignment 4:
Renegotiation - HDREP engaged once again in 2005 to advise CME in its upcoming 2008 lease expiration.
