General Motors will relocate its world headquarters to a new facility in 2025.
Since 1996, the largest of Detroit’s Big Three automakers has called the Renaissance Center (or “RenCen”) — a skyscraper complex that dominates the city’s skyline — its global HQ. On Monday, however, GM confirmed it would leave the facility in the next year, relocating into the Hudson’s building in the heart of downtown Detroit.
The new 1.5 million-square-foot facility is near RenCen, up Woodward Avenue on the site of the original Hudson’s department store, hence the name. The site, redeveloped into a 12-story office building as well as adjacent residential condominiums, a public plaza and a 5-star hotel, will be GM’s fourth headquarters location since 1911.
GM announced it entered into a 15-year, multi-level lease for the top floors of the Hudson’s office building, as well as space at street level to showcase GM vehicles and “community activations”. As for Renaissance Center, the automaker will work with real estate developer Bedrock, the City of Detroit and Wayne County to explore opportunities to redevelop the Renaissance Center. However, GM is not relinquishing ownership of the complex.
So, why is the company moving at all? That comes down to the drastic change in the commercial real estate market, as more workers than ever have adopted a hybrid workflow, only spending part of the week in the office. “The decision to explore redevelopment opportunities for the Renaissance Center comes at a time with the office real estate market is transforming. A recent study [by CBRE] indicated that 80% of current office occupiers have adopted or will adopt hybrid work.”
Per the Associated Press, General Motors currently only occupies about 1-1/2 towers of the seven-building RenCen complex. CEO Mary Barra noted the more modern building will not only suit the company’s spatial needs, but help it recruit talent in the future.
Bedrock announced last week that the final structural steel beam had been installed on the Hudson’s tower, a milestone toward the building’s completion by the time GM plans to occupy the space next year.
