DETROIT-General Motors Inc. has hired CBRE Group Inc. to manage one of the world’s largest office complexes, the downtown iconic Renaissance Center. The seven-building property is 5.5 million square feet total, but CBRE’s contract will only include 3.5 million square feet and not the Detroit Marriott hotel.
Hines and GM acquired the 34-year-old complex in 1996, and Hines stayed on as manager since the purchase. John Latessa Jr., managing director of CBRE’s local office, tells GlobeSt.com that the automaker started looking for another manager this year. The building is the main tower complex that is seen on most pictures of Detroit, and it bears the GM nameplate.
Starting in January, CBRE will provide facilities management, leasing and project management for the office portion of the complex. The property is about 92% occupied, with GM only leasing about 40% of the complex. The rest includes tenants such as law firms and Blue Cross Blue Shield, which agreed last year to lease about 450,000 square feet in a move from its headquarters in Southfield, MI.
The Detroit office market has struggled with about 30% vacancy for a few years now, though recent moves downtown from suburban companies such as Blue Cross and Rock Financial have breathed some life into the city. Latessa says there has been some positive absorption downtown, though it hasn’t really translated into a better market. “There’s definitely increased awareness and sincerity by office tenants to grow in Detroit more so than any time I’ve been in Detroit,” he says.
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