General Motors leased the new Oakland Logistics Center in Pontiac, Michigan, as part of its $35 billion pledge to shift to selling only electric vehicles by 2035, an announcement that marked a historic turning point for the iconic American carmaker and put electric cars in the driver's seat for the future of the global auto industry. The deal also represented a significant win for the struggling city of Pontiac, and in recognition earned the deal the 2023 CoStar Impact Award for lease of the year in Detroit, as judged by real estate professionals familiar with the market.
GM became the first major U.S. automaker to commit to all-electric cars when it announced in early 2021 it planned to stop making gasoline-powered passenger cars, vans and sport utility vehicles by 2035. In support of the pledge, GM leased the Oakland Logistics Center, a 713,796-square-foot project that was developed on speculation on the former site of General Motors' Pontiac East assembly plant, a 3.4 million-square-foot facility that in its heydey employed more than 1,100 workers to produce Chevrolet Silverado and GMC Sierra pickup trucks. The plant was shuttered in 2009 and ultimately demolished in late 2011.
Following the lease, project developer Flint Development sold the building to Shreveport, Louisiana-based industrial investor Sealy & Co. in September.
About the project: Kansas City-based Flint Development broke ground in early 2021 on the Oakland Logistics Center, a $55 million project that, during its construction, represented one of the largest speculative projects in the state of Michigan. The project was built on 44.5 acres at 2100 S. Opdyke Road and includes 36-foot clear heights, 153 dock doors, four drive-in bays and 690 parking spaces. Davidson Architecture and Engineering designed the project.
What the judges said: In addition to being one of the largest industrial leases of the year, the General Motors deal created the greatest impact on its community, said John DeGroot, vice president of research at Newmark. "The city of Pontiac has long been void of investments following the closure of GM’s truck and bus plant. This new investment puts the city of Pontiac at the center of a billion-dollar investment in a new and growing electric vehicle industry."
"The size of the Oakland Logistics Park is one of my biggest reasons for selecting this for lease of the year, and that [it] was redeveloped in the city of Pontiac, that really needs some attention," said Dominic Shamany, managing director with Legacy Commercial Real Estate Advisors. "I also chose this for the employment aspect, it is nice to know and see how many new jobs this has created and how many jobs it will create in the future."
They made it happen: Daniel Labes, Geoffrey Hill and Chris Hill of Newmark represented Flint Development in the lease. AJ Weiner and Ben Schrode of JLL represented General Motors.
