Automakers have an impact on industries that reach far beyond cars and drivers. Real estate is one area where the sector has a significant footprint, and one of the industry’s biggest names is making waves in Detroit’s downtown. General Motors recently announced a move from the Renaissance Center (RenCen), the building it purchased in 1996, to a new location at the Hudson’s Detroit building further north.
The move is scheduled for 2025, but the decision could leave a significant part of the Detroit skyline empty. GM owns five of the seven RenCen towers, and its absence will open quite a vacancy in the complex. There will be costs associated with the move, and GM will take on leasing costs it didn’t have before, but the new location will help cut unneeded office space.
GM CEO Mary Barra said the automaker would work with developers to find a use for the old buildings but also noted that the company was committed to the Detroit area, calling the new building a “new city landmark.” The automaker will reside on the building’s top two floors, with around 100,000 open square feet across them. That’s a significant reduction from RenCen’s 2.3 million square feet.
GM President Mark Reuss said the company hadn’t determined how many employees would move to the new location. He did say that GM’s executives and corporate offices, including finance, legal, and other departments would make the move.
[Image: Linda Parton via Shutterstock]
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