General Motors is set to move its headquarters to a new skyscraper in downtown Detroit, marking a significant shift from its long-standing base at the Renaissance Center. This move was confirmed ahead of a scheduled press conference with GM CEO Mary Barra and Dan Gilbert, a prominent real estate developer and owner of the NBA's Cleveland Cavaliers.
The move will see GM relocating its global headquarters to the Hudson's tower, a modern high-rise that will become Detroit's second-tallest building. This decision underscores GM's commitment to Detroit, even as it plans to redevelop its current home at the Renaissance Center, which it has occupied since 1996.
The Renaissance Center, or RenCen, has been a prominent part of Detroit's skyline and is often featured in sports broadcasts due to its iconic status. GM's purchase of the RenCen was initially seen as a milestone that spurred the downtown area's revitalization.
According to a source familiar with GM's plans, the company does not intend to sell the RenCen but will instead explore options for its redevelopment in partnership with Bedrock, the real estate firm chaired by Dan Gilbert. Bedrock has been instrumental in Detroit's recent resurgence, acquiring multiple properties in the downtown area.
GM's move is scheduled to take place once the new Hudson's tower is completed, which is already seeing significant progress with the final structural beam recently installed. The tower is set to feature 1.5 million square feet of mixed-use space, including retail, office, dining, hospitality, and residential areas.
Mary Barra, in discussions about the future of GM's office spaces, indicated a shift towards more hybrid work arrangements, which has altered the company's space requirements. "As we move to having more of a hybrid work structure, we have to look at what's the right space," Barra stated in a 2022 interview with The Associated Press.
The transition comes at a time when GM is adjusting to post-pandemic work dynamics, including accommodating a workforce that increasingly favors flexibility. Approximately 5,000 GM employees took early retirement buyouts last year, further reducing the need for expansive office space.
Detroit remains central to GM's identity, with Barra emphasizing the company's dedication to maintaining its headquarters within the city. "Our headquarters will always be in Detroit, in the RenCen," she remarked, noting that while the current plan is to stay at the Renaissance Center, future developments are open to strategic considerations.
