Just a few months ago, General Motors confirmed that it’ll be moving its global headquarters from the Renaissance Center to Hudson’s Detroit. While this transition is currently expected to take place in 2025, this begs the question, what will become of the RenCen following The General’s departure? Well, GM CEO and Chair Mary Barra doesn’t quite have the answer just yet.
According to a report from the Detroit Free Press, Barra commented that General Motors is committed to finding a good use for the Renaissance Center as the Detroit-based automaker prepares to make the changeover to Hudson’s Detroit. However, GM hasn’t ruled out any avenues for now, including a full-blown demolition.
“Yeah, we’re first looking at what can be done and what would be the appropriate use for the business,” Barra remarked when asked about the possibility of demolishing the RenCen. “We’ve got a year to do that so that’s where we’re focused. We’ll look at what’s the best use for that building or that property. We’re committed to doing the right thing. It’s such prime real estate. I’m sure we’re going to come up with a good solution.”
It’s worth noting that General Motors has occupied the Renaissance Center for roughly 28 years.
As a reminder, The General likely elected to move from the RenCen for a number of reasons, including a general need for downsizing. Following the transition to remote work during the onset of the COVID-19 pandemic, fewer workers were physically present at GM’s HQ, which in turn resulted in empty rooms throughout the building. While Barra recently strongly urged hybrid workers to return to their physical desks at least three times a week, General Motors simply doesn’t have the same need for space as it once did.
Moving forward, the Detroit-based automaker will reportedly take up the top two floors at Hudson’s Detroit, in addition to space on the street level floor to showcase GM vehicles and host community events.
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At a time of year when luxury car ATP usually rises.
Sales decreased 5.6 percent to 16,670 units during the first ten months of 2024.
Specifically critical minerals supply chain development.
Scheduled for a Spring 2025 launch.
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Park all of the EVs that nobody wants there?
They will find a was to hemorrhage money toward something stupid with it and then blame that on why new car prices can't come down
I visited that building in 1989. I even went up to the top floor and saw the rotating
restaurant with a view to Winsor, Canada. But I did not eat there. I hope that restaurant is still there.
The building is excessive. GM bought the building in 1995 and it was never really able to utilize the full building. And now with the new Work From Home trend, the building has now become an even costlier asset to own (GM may not be paying rent here as landlord but they are probably wasting thousands if not millions in energy bills and not to mention the taxes). The building isn't accumulating value like a home would so its not really an investment. The building is also probably getting old and is coming up on millions of dollars in HVAC renovations and other infrastructure upgrades needed to keep the building functional and compliant with recent energy codes. Renting a smaller space in Hudsons Detroit will probably be less costly than to keep at it with the RenCen. If you ask me, GM should consider offloading it off their shoulders and enjoy the lighter more modern rental.
Always thought the place looked like a collection of silos. Glad GM is headed out of there.
Wonder if they'll find a buyer who'll pay more than demolition cost for it.
Demolishing the Ren Cen would be like New York demolishing the freedom tower or Chicago demolishing the Sears Tower.
If Dan Gilbert is involved, something great will become of it.
Given the state of commercial office space a tough time to throw an iconic bldg on the market place. The cost of demo would exceed the land value is my guess. And nobody needs that much space and maintenance costs in 2025 and beyond
Hindsight 20/20 you sell it to Ford in 2019. :D
But today is today and none of GM's options are cheap.
You’re right Fatone. Detroit currently has a nearly 25% office vacancy rate….and that’s before the Ren Cen and the Michigan Terminal became available.
Maybe they’ll find some use for it as a mixed-use housing/shopping/office facility but given its size it’s going to be very tough. And that’s assuming someone is willing to pour even more capital into it.
In the relatively short time gm owned it they put well over a $1B in upgrades into it. Basically wasted money.
New homes for the homeless and economically challenged coming soon.
If Mary is confident about something, that's when we need to worry.
One word.....Condos!....more people looking for a place to live than companies looking for office space!