GM says it will move headquarters from RenCen to Hudson's site in 2025

"A lot of developers would rather work in the city" over a suburban community like Warren, Ives said. "Especially the buildout that’s happening in Detroit is attractive to those who would move from the West Coast."

Municipal leaders expressed optimism for what the move will mean for Detroit. City Council President Mary Sheffield, who represents the downtown district, said GM isn't only an integral part of the city’s history, it's a significant part of the global economic engine.

“The iconic company’s decision to stay in Detroit and take up roots in the new historic Hudson’s Detroit building is a major feather in our city’s cap and further cements our legacy as a major American metropolis,” Sheffield told The Detroit News.

“Bedrock under the leadership of Dan Gilbert and General Motors under the leadership of Mary Barra, coming together to preserve and reimagine the Renaissance Center is welcomed news and a shining example of both organizations’ commitment to honoring Detroit’s history and culture.”

Construction on the Renaissance Center began in 1973 under the vision of Henry Ford II in partnership with 26 other business leaders in an effort to encourage building activity in Detroit in the aftermath of the 1967 Detroit uprising. The $350 million project (roughly $1.7 billion today) was the country’s largest privately funded real estate development at the time. Upon opening in 1977, the center hotel tower was the largest in the world. Towers 500 and 600 were added in 1981, and a third phase that was supposed to include residential housing never came to fruition as Detroit's population continued to decline.

GM bought the complex as its global headquarters in 1996 for $73 million (about $142 million today), immediately planning a $500 million ($971 million) renovation. It moved from Cadillac Place in the New Center district. In 2008 leading up to its bankruptcy, General Motors Corp. explored the possibility of a sale leaseback for the RenCen, but it didn't have any takers.

GM for a while has been looking to unload the more than 5.5 million-square-foot, seven-tower complex. Crain's Detroit Business previously reported Gilbert's Bedrock and GM had been in discussions in the fall of 2018 about a sale of the site; they fell apart because of costly renovations, including an overhaul of the heating, venting and air conditioning system.

The Renaissance Center, which sits on 14 acres, is a city within a city that features a Marriott International Inc. hotel as well as a People Mover stop.

Farmington Hills-based Friedman Real Estate in December purchased the 500 and 600 towers in downtown Detroit from Public Service Enterprise Group Inc., a New Jersey energy company. Blue Cross Blue Shield of Michigan has a long-term lease for the 500 River East Tower.