While the housing market is still nose-diving, CME Group is hoping it can do a little better in the corporate real-estate arena by deciding to put most of the iconic Chicago Board of Trade building up for sale.
On June 13, CME Group announced it had put the historic Art Deco north building and the newer south building, which includes the agricultural trading floor, up for sale. It plans to retain the east tower where the financial pits are located and stipulate a 15-year leaseback of the trading floor. "CME Group remains committed to our floor-based membership and open outcry trading services, which continue to be a profitable part of our business," said Jamie Parisi, CME Group chief financial officer, in the release.
The announcement came less than a week after the exchange threatened to move its headquarters out of Illinois due to increases in corporate taxes.
"The decision to sell [the CBOT building] is strategic so we can reinvest in our core derivatives business," says a CME Group spokesman.
The 80-year old Art Deco building was designated an historical landmark in 1978.