Author: brent

CyrusOne Shells Out $130 Million to Buy CME Group Data Center

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CME Group announced that it has entered into a definitive agreement to sell its suburban Chicago data center in Aurora, Ill. to CyrusOne, Inc., (NASDAQ: CONE) a global data center services provider, for $130 million. The transaction is subject to customary closing conditions.   As part of the sale, CME Group will enter into a 15-year lease for data center space and will continue to operate its electronic trading platform, CME Globex, from the data center and will offer co-location services there. CME Group will have the ability to expand co-location services within the leased space going forward. The agreement also outlines the ways in which CyrusOne and CME Group will enhance the range of services available to their mutual customers through connectivity, hosting and data offerings.

 

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“CME Group is pleased to work with CyrusOne to maintain our co-location services while reducing our real estate holdings in line with our growth strategy,” said CME Group Chief Financial Officer John Pietrowicz. “This transaction allows us to enter into a long-term lease to meet our data center needs while focusing our resources on what we do best – running our exchanges, providing global risk management and offering a broad range of technology services. Further, by entering into this relationship with CyrusOne, CME helps to ensure that our customers will have cost-efficient access to an even broader set of infrastructure and data services, including disaster recovery, cloud access, data storage and high-performance computing.” “The acquisition-leaseback of this facility offers unique advantages to our customers involved in the global financial markets by providing connectivity to those transacting on the CME Globex platform. With this facility, and with CME Group as our tenant, we are excited to have the opportunity to expand the global risk management campus in Chicago – the preeminent financial services co-location hub in the industry – which will be a cornerstone of our unique and rapidly growing data center platform,” said Gary Wojtaszek, president and CEO, CyrusOne. “This acquisition helps solidify our position in the financial services market and will create additional FinTech opportunities by offering a unique ecosystem to our financial, energy, enterprise, and cloud customers.” Through this acquisition, CyrusOne will increase the size of its portfolio to 33 data centers across US, Europe, and Asia, and strengthen its offerings within the financial services market. The facility is approximately 428,000 square feet. It features next-generation security, fire protection, and infrastructure enhancements.

Letter to Crain’s Chicago Business Editor: Invest in R&D

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Written by: John A. Carpenter, President & CEO | Choose DuPage  Recent headlines don’t boast many positives when it comes to our state’s rising unemployment rate, now at 6.4 percent (“Illinois unemployment rises slightly,” March 24). Yet in comparison, DuPage County has remained a hub of economic activity and maintains one of the lowest unemployment rates in the state.

 

So what is DuPage County doing so differently versus the state of Illinois?

 

Due to our insight at the Choose DuPage Economic Development Alliance, we have continuously advocated on behalf of innovative industries. In contrast, the state is limiting itself by pushing pro-innovation reforms to the wayside. Illinois has failed at protecting R&D industries by allowing the tax credit to renew and expire four times over the last 13 years, and currently we are one of the only states without the credit in place. Choose DuPage, along with the Advance Illinois Manufacturing Coalition, stands ready to work with lawmakers to support a modern and permanent R&D tax credit, because it would be a shot in the arm to our ailing state economy. Innovation can be the key to Illinois’ economic growth, and I encourage legislators to support a permanent R&D tax credit as the means to do that. View on Crain’s Website

DuPage Business Leaders Head to Springfield

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Earlier this month, 25 DuPage business leaders and delegates took a full day away from their business to visit with legislators in Springfield. Choose DuPage, along with Chamber630, Bolingbrook, Elmhurst, West Suburban and Western DuPage Chambers, visited with several elected officials, attended committee meetings at the Capitol and Stratton Building and ended the evening hosting a crowded legislative reception allowing attendees to further their relationships with those that make so many important decisions that affect their bottom line. 

 

The focus of the trip was budget, education funding and independent maps. We also addressed a proposal for the Employee Paid Health Care Time Act; Workers Compensation, specifically causation, and an unfunded mandate of public/private entities. The delegation of DuPage business leaders was provided legislative briefings by Illinois Chamber president, Todd Maisch and lobbyist, Elizabeth Van Holt of Isaiah Consulting at a luncheon sponsored by AT&T. Van Holt covered education funding and consolidation for institutions of higher education as well as the proposal for School Funding Reform Act, SB1. She also reviewed the history and logistics of the Independent Map Amendment.

DuPage Business Leaders in Springfield

Maisch spoke to workers’ compensation which continues to be a critical concern for employers as does any increase of the minimum wage, especially without meaningful business reforms. Transportation funding and various proposals for its revenue sources was discussed, as well as a bill mandating accrued paid sick leave. IMG_0014The delegation brought all these topics over to the Capitol while visiting with several elected officials including Governor Bruce Rauner, Senator Tom Cullerton (D23rd), Representative Grant Wehrli and others. Sponsors of the trip, Choose DuPage, AT&T, Downers Grove Economic Development Corporation and Midwestern University welcomed over 100 guests at the reception including those mentioned earlier and Representatives Steven Andersson (R65th), Ron Sandack (R81st), Patti Bellock (R47th), Peter Breen (R48th), Michael Connelly (R21st), Mike Fortner (R49th), Mark Batinick (R97th), Lawrence Walsh, Jr. (D86th), Jeanne Ives (R42nd), Emily McAsey (D85th), Michael Zalewski (D23rd) and many others.

Debunking the Myths of Suburban Office Leasing

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Originally published by: Chuck Sudo, Bisnow Chicago | View Article While it’s true more companies are flirting with downtown moves to court and attract a younger workforce, a read past the headlines indicates the suburbs are more than holding their own—in fact, many suburban markets are thriving.

 

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A recent report from JLL separates fact from fiction in suburban office markets. JLL research director Christian Beaudoin and SVP Todd Schaefer (pictured with JLL managing director Sean Reynolds, right) say this report serves as a reminder of the stability found in the suburbs. Let’s take a look at some of the myths they debunk.

 

Myth No. 1: All Millennials Want to Live in the City

 

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Fact: A JLL/Choose DuPage survey found that 48% of Millennials working in DuPage preferred working in the suburbs. What these younger workers do have a problem with is commuting to work. The survey also determined that 53% of respondents wanted alternatives to driving to work, and 46% of Millennials are commuting more than 45 minutes to their jobs. Christian says office landlords are exploring options such as shuttle services to Metra stations, but that this becomes harder to subsidize the farther out of the urban core workers travel.

 

Myth No. 2: Companies Moving Downtown Shun the Suburbs Completely

 

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Fact: Of the 22 suburban companies whose moves to the CBD made headlines last year, 77% of them also opened or maintained a suburban presence. Todd says the main reason for this dual-location strategy is not only to attract and retain Millennial talent, but to be closer to potential clients. Christian adds another advantage is to provide options for workers in different job functions. While a downtown office presence may be right for sales, tech or creative positions, a suburban office (where rents and labor costs are lower) can be appropriate for call centers and back office operations.

Myth No. 3: Suburban Office Markets Have Been Slow Over the Past Four Years

 

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Fact: Aon, Zurich and Zebra Technologies have accounted for three of the four largest lease transactions in the suburbs, and companies committing to leases over 50k SF the past four years accounted for more than 13M SF of transactions. Growing companies see value in these markets as destinations for their businesses, which Todd says is a testament to the suburbs.

 

Myth No. 4: The CBD Presents Better Opportunities for Tenants and Investors

 

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Fact: The city and suburbs benefit equally from easy access to O’Hare and Midway International Airports, growing tourism numbers, and Chicago’s position as a logistics hub. Christian says tenants and investors don’t have to subscribe to an either-or scenario and that working together, both Chicago and the suburbs provide excellent opportunities for companies and employees.  

Economic Report Finds Business Climate Thriving in DuPage County

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Report showcases DuPage as the premier business location with the lowest unemployment in the region

 

The 2015 Annual Economic Indicators Report confirms DuPage County as a thriving business climate due to its low unemployment, skilled workforce, high quality of life and growing business sector. The report reinforces DuPage County’s attractiveness for job creators and entrepreneurs at a time when the state and communities like Chicago struggle with high taxes, pension challenges and a hostile business climate. The report was compiled from Choose DuPage member data and professional economic data provider EMSI.

 

2015 Annual Economic Indicators Report Highlights:

  • DuPage County has the lowest unemployment rate at 4.5% in the Chicagoland region, and far below the state at 6.4%
  • DuPage County sales tax receipts have increased by 5.5% reaffirming a strong and welcoming business climate
  • DuPage County‘s largest and fastest growing industries include healthcare, retail, scientific and manufacturing
  • Suburban office leases are priced 66% lower per square foot than Chicago’s Central Business District, helping to drive DuPage’s lowest industrial vacancy in the region of 5%

 

“The families and businesses of DuPage County are thriving as local commerce and business development continues to flourish,” said John Carpenter, president and CEO of Choose DuPage. “Driven by our skilled workforce, high quality-of-life and premier location, new businesses have made DuPage their home and local industries continue to expand and grow their footprint. This report highlights DuPage County as a premier business location during a time when the state of Illinois is lagging.” At the time of the report, DuPage County’s unemployment rate was the lowest in the region and among the lowest in the state at just 4.5%, while the Illinois Department of Employment Security (IDES) showed the City of Chicago was far higher at 6 percent. The Bureau of Labor Statistics currently ranks Illinois as one of the highest unemployment rates in the United States at 6.4 percent. In addition to these economic impact report findings, DuPage County was recently named Illinois’ Healthiest County by a study published in collaboration by Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute. The study surveyed overall health outcomes, social and economic factors, as well as physical environment including education, crime and employment.

Local Exports Drive Growth in DuPage County

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Exports

DuPage County is a great place to build and grow a business, but as many of our local companies know, more than 70 percent of the world’s purchasing power is located outside the U.S., and international markets offer great potential for growth and expansion. More than 22,000 companies exported from Illinois in 2013, including many with fewer than 500 employees. These businesses have not only grown their bottom lines, but have also created jobs here in DuPage County by reaching untapped markets abroad.

 

Continue reading →

Village of Lombard Economic Incentive Policy Facilitates New Retail Developments

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Sam’s Club and Bluestone Single Tenant Properties LLC Coming to Lombard

Advancing the Village’s goal to explore all options to bring new business activity to the Village’s business corridor, the Lombard Village Board approved two economic incentive agreements at their March 17, 2016 meeting. These developments are the first projects that are the result of the Village’s recently adopted Economic Incentive Policy. Continue reading →

Pace Service Restructuring

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Proposed service changes to improve regional connectivity and provide a more complete network to DuPage County and the region as a whole

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The plan is designed to maintain a robust level of service in any areas where routes are being combined by adding trips and lengthening the span of service on the new combined routes.

 

DuPage Service Modernization Summary

 

Pace is excited to announce a plan to modernize bus routes in Downers Downers Downers Grove, Lisle, Naperville and Woodridge. Any changes to the bus routes require a vote of the Pace Board and would take effect in June.

 

Highlights of the service improvements include:

  • 33% increase in the number of Metra trains met by Pace feeder routes
  • $1 million net increase in bus service
  • New service between Naperville and Lombard

 

Public hearings to discuss the proposed services changes

 

Pace is excited to announce a plan to modernize bus routes in southern DuPage County (Downers Grove, Lisle, Naperville and Woodridge). Pace riders and stakeholders are invited to discuss proposed improvements to the bus route network at three public hearings. Pace staff will take input from this forum and, if necessary, update the planned changes. Any changes to the bus routes require a vote of the Pace Board and would take effect in June.

 

Public Hearings:

 

Tuesday, March 29, 2016 5:00 pm – 7:00 pm Naperville Municipal Center 400 Eagle Street Naperville IL, 60540

Wednesday, March 30, 2016 5:00 pm –7:00 pm Lisle Village Hall, Board Room 925 Burlington Avenue Lisle, IL 60532

Thursday, March 31, 2016 5:00 pm – 7:00 pm Downers Grove Village Hall, Council Chambers 801 Burlington Avenue Downers Grove, IL 60515

Click here for a full description of proposed changes.

Talent Trumps Cost as the Leading Driver of Real Estate Decisions

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Study by: CBRE | View Study
Singular focus on cost is being challenged by new paradigm—“people, people, people”—as corporate executives increasingly view office environments as recruitment and retention tool 

A new survey of corporate executives underscores a major shift in how companies are making real estate decisions today, with more than half saying that talent now trumps cost as the top strategic consideration. Of the 229 executives surveyed by CBRE Group, Inc., 50 percent named talent availability as the foremost consideration in real estate decision-making, while only 31 percent named real estate cost as a top factor.

 

People and workplace experience are dominating the corporate real estate agenda, together with escalating costs, according to CBRE’s Americas Occupier Survey. Today, these two issues are driving real estate conversations; as a result, workplace strategy is increasingly being viewed as both a critical employee attraction and retention strategy (57 percent), and as a means to control costs. Further, of survey respondents, 85 percent cite space efficiency and restructuring as a top strategy for reducing occupancy costs. “With talent retention and cost management both so highly valued, yet clearly in conflict when jointly pursued through traditional means, it is more important than ever to explore new and innovative solutions,” said Julie Whelan, Americas Head of Occupier Research for CBRE. “What’s clear from this survey is that today’s corporate real estate executives must balance the new workforce desires with a realistic workplace strategy that brings talent and expense management into simultaneous focus.” Survey respondents indicated that their labor force—which is more generationally and ethnically diverse than ever before—places the highest importance on the desire for a great “work experience,” specifically the functionality of the workplace, freedom of work style and a sense of community. “Connectivity to the people and places needed to get the job done and freedom of choice in choosing when and how to work are the primary preferences of today’s labor force. Corporate executives are taking notice and prioritizing the workplace experience when making real estate decisions today,” said Karen Ellzey, Executive Managing Director, Global Workplace Solutions, CBRE. “We hear this conversation every day when working with our clients, but this survey confirms that there has in fact been a paradigm shift when it comes to the way companies view the role of real estate in their business.” Among the workplace attributes at the top of the priority list, survey respondents cited:

  • Connectivity to partners and suppliers (44 percent)
  • Flexible working (42 percent)
  • Flexible workspace (39 percent)
  • Provision of amenities (34 percent)
  • Indoor environmental quality (33 percent)
  • Public transportation accessibility (24 percent)

 

The corporate real estate executives surveyed also identified the critical areas still needed to answer the call of today’s target workforce. Among them are a commitment from the C-suite to empower and approve the delivery of a modern work environment – and with that, accurate, quality data to justify the strategy, and capital to implement. “This is not a space where corporate real estate departments can act alone. If the expectations of tomorrow’s labor force are to be met, a combination of HR policy changes, integration of IT advancements and adaptation of modern cultural and managerial practices are required to ensure workplace change is both functionally effective and financially sustainable for the long-term success of the organization,” added Ms. Ellzey.