CME competitor boosting space in move
353 N. Clark. Photo from CoStar Group Inc.
(Crain's) — The upstart rival to Chicago-based exchange giant CME Group Inc. has leased 23,400 square feet at a new River North office tower.
IntercontinentalExchange Inc. signed an 11-year lease last month at 353 N. Clark St., the 1.2-million-square foot high-rise developed by a joint venture led by the real estate arm of Chicago-based Mesirow Financial, which is also an anchor tenant.
The 45-story structure, now 87% leased, opened in October. Terms of ICE's lease were not disclosed. ICE is to move to the building in March.
The deal comes at a time when many tenants are opting to renegotiate existing leases because they lack the money — or the confidence — to move in this economy.
Atlanta-based ICE is an exception because "these guys are healthy, strong and they continue to grow," says Steve Smith, a managing director with Chicago-based Jones Lang LaSalle Inc., which represented the Mesirow venture.
ICE's third-quarter income jumped 16% to $87 million, compared to third-quarter 2008.
Formed in 2000, the company drew attention in 2007 when it launched an aggressive bid for the Chicago Board of Trade, only to lose to CME Group, which paid $8 billion for the CBOT.
ICE is expected to bid for the Chicago Board Options Exchange, should it go up for sale.
Related story: Exchanges exchanging glances
ICE's new lease comes roughly eight months after ICE acquired Chicago-based Clearing Corp., a clearinghouse that guarantees transactions for derivatives like credit default swaps.
ICE is moving its offices to 353 N. Clark from 55 W. Monroe St., where since 2005 it leased just under 5,000 square feet.
Clearing Corp. is moving from 227 W. Monroe St., part of the two-tower Franklin Center, where it leases 13,588 square feet. ICE was represented by Renee Betzelos, a managing principal at Chicago-based ProTen Realty Group.
ICE's space at 353 N. Clark is about 26% more than the total of ICE and Clearing Corp's current space.
With vacancy rates rising, tenants are opting for newer towers with desirable amenities, like the changing rooms for bicyclists at 353 N. Clark, says David Stein, managing principal at Chicago-based Steinco Inc., who wasn't involved in the transaction.
"Tenants want amenities," he says. "It's the No. 1 thing they want, besides reducing their rent."
In an unrelated transaction, a San Francisco-based financial services firm is moving its Chicago offices this week into another new downtown office tower.
Stone & Youngberg LLC signed a 6˝-year lease for 4,959 square feet at 155 N. Wacker Drive, developed earlier this year by Chicago-based John Buck Co.
Completed in June, the 46-story tower is about 72% leased.
