GM News: General Motors Looked At Selling RenCen in 2018

[Drew Dowdell]

Among General Motor's restructuring and cost slashing activities of 2018, GM was apparently in talks to sell their headquarters in Detroit.  GM bought the Renaissance Center in 1996 for $70 million and has made substantial renovations over the years.   The RenCen, as it is also known, was originally built by Ford in 1971 who later sold it in the 1980s.

The potential buyer was billionaire Dan Gilbert.  Talks fell through rather early because the aging structure requires expensive upgrades to its heating and air conditioning systems along with other renovations. There does not appear to be another buyer in talks with GM at this time.

News of the potential sale follow a year of cost cutting measures by the company that include closing five North American plants and cutting up to 14,000 jobs.  The company hopes to have $6 Billion in annual savings by 2020. 

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[riviera74]

IF GM were successful in selling RenCen, where would they move the HQ to?  Or would it be a sale and leaseback?

[Drew Dowdell]

20 minutes ago, riviera74 said:

IF GM were successful in selling RenCen, where would they move the HQ to?  Or would it be a sale and leaseback?

No idea either way. I don't think they got far enough for it to start to matter. 

[David]

Funny that a comment on the original story says sell the whole company to Gilbert as the company initials would not change and the person believe Gilbert would run it better. lol  

[daves87rs]

Still rumors of that around here this year as well.

Though they would have no clue where to move....

[balthazar]

Back to the original HQ? I always liked that building, have been in the lobby. 

[oldshurst442]

Downsizing is an amicable and sensible idea. Assuming that GM wants to sell and move out of RenCen is for downsizing reasons and assuming that GM is still considering selling and moving out...

There is no need for an ostentatious and lavish headquarters in today's world reality.  However, a big corporation as big as GM or Mercedes does need sufficient real estate to house all the necessary offices required...

Has GM outlived the need for a headquarters as imposing as RenCen?

Whatever building they decide to move to if they sell RenCen, Im willing to bet the new place wont be as flamboyant nor quite as big either. 

 

 

 

[balthazar]

Anyone have any ideers on the occupancy of the RenCen by GM / other companies? I can see if they own the building and it has a lot of unleased space… but otherwise I would assume the move & purchase cost of another would be huge.

Is there room for new construction in Warren @ the Tech Center? 

Edited May 22, 2019 by balthazar

[Drew Dowdell]

Well there is many floors of a hotel in there. Plus restaurants, conference centers... It's a bit like a mall on the first few floors. 

Very confusing to find your way around though.

[daves87rs]

4 hours ago, balthazar said:

Anyone have any ideers on the occupancy of the RenCen by GM / other companies? I can see if they own the building and it has a lot of unleased space… but otherwise I would assume the move & purchase cost of another would be huge.

Is there room for new construction in Warren @ the Tech Center? 

Pretty much what Drew said...I know there is a small mortgage company in there as well.

And with the way they are cutting the upper fat right now, I think they could squeeze those folks into Warren......

[balthazar]

According to Wiki- the Tech Center has 710 acres of land.

[NINETY EIGHT REGENCY]

Maybe they could move back to the old building that is called "Cadillac Place" now or move things out to the tech center in Warren, Michigan.They stopped construction on expansion of the tech center.  They must have realized they needed to right size the company.