Office N Illinois

Cboe to relocate to Old Post Office, create new trading floor in Board of Trade Building

The Chicago Board of Trade Building. The Chicago Board of Trade Building.
The Old Post Office. The Old Post Office.
The Old Post Office. The Old Post Office.

Cboe Global Markets, one of the world’s largest exchange holding companies, has confirmed earlier reports that the firm will relocate its global headquarters in Chicago to the Old Post Office building at 433 W. Van Buren Street. The company also plans to build new trading floor in the Chicago Board of Trade Building, to be completed in 2021.

Cboe will occupy approximately 185,000 square feet within the Old Post Office building and expects to relocate its Chicago staff, representing approximately half the company’s employees, in the second half of 2020. The company announced its plans to Cboe employees at a global Town Hall meeting earlier today.

“Our primary goal in selecting a new headquarters was to provide a unique, state-of-the-art environment for our employees and customers—one befitting an innovative company operating at the forefront of financial markets around the world,” said Ed Tilly, chairman, president and chief executive officer of Cboe Global Markets. “After a rigorous evaluation process, the Old Post Office was determined to be the ideal fit as its renovation is transforming this landmark building into a showcase property with world-class features and amenities.”

New-York-based 601W Companies is in the midst of an $900 million renovation on the 2.8 million-square-foot, Art Deco building, located at 433 W Van Buren Street. The first tenants are scheduled to move in by September. Steve Smith, Jamey Dix and Daniel Heckman of The Telos Group are the brokerage team tasked with bringing tenants to the rejuvenated property. Chicago-based Bear Construction is acting as general contractor on the project, implementing a Gensler design.

Cboe also announced plans to move its trading floor—which includes trading pits for S&P 500 Index options and Cboe Volatility Index options—to approximately 40,000 square feet of leased office and trading floor space to the historic Chicago Board of Trade (CBOT) Building, located at 141 W. Jackson. Cboe plans to build its new trading floor on the seventh and eighth floors of the building, which is also known home to several banks, trading firms and others in the financial industry.

The historic CBOT Building—owned by a partnership between Glenstar and Oaktree Capital, and leased and managed by Glenstar—was Cboe’s first trading floor home when it was founded in 1973. The new Cboe trading floor build-out will occupy the same area that housed Cboe trading pits in the late ‘70s and early ‘80s, until Cboe moved to its current headquarters at 400 S. LaSalle Street in 1984.

“Our customers continue to find value in the trading floor experience, therefore Cboe remains committed to supporting open outcry,” Tilly continued. “We’re demonstrating this through a long-term lease and move to a building that affords robust trading floor infrastructure and amenities.”

Cboe signed a 15-year lease, with a five-year renewal option, for its new space in the Old Post Office building and a 12-year lease for its new space in the Board of Trade Building. The company plans to sell its current building.

Holly Duran Real Estate Partners (HDREP) is Cboe’s primary real estate advisor, with managing broker Holly Duran and partner Jeff Mulder leading the efforts on these transactions. Based in Chicago and certified by the city as a Women-Owned Business Enterprise, HDREP is a global real estate strategy and advisory services firm that provides innovative, cost-efficient solutions to commercial tenants.

Cboe has commissioned CannonDesign to help with design, workplace strategy, change management and engineering services; Pepper Construction is the general contractor for the build-out of the new spaces. Cboe is represented by outside counsel Jenner & Block.