General Electric will vacate its two-building headquarters in Boston’s Fort Point as part of a company-wide downsizing of its real estate footprint.
The company notified its Boston employees that it will exit the properties in 2023, the Boston Globe reported, while seeking smaller office space elsewhere in Boston.
The converted industrial buildings on Necco Street, totaling 100,000 square feet, have served as GE’s corporate headquarters for three years. They were originally planned to be part of a larger campus including construction of a new 12-story tower on a neighboring parking lot.
GE’s headquarters will remain in Boston “at this time,” a spokesperson told Reuters.
GE also said it will sell its Crotonville, New York campus, and vacate offices in Manhattan while consolidating office space in Norwalk, Connecticut.
GE began renovations to build out its office space in the 5 and 6 Necco St. buildings in 2017. But the company delayed plans for the new office tower in August 2017, just three months after a groundbreaking ceremony, amid a corporate cost-cutting campaign. The project was dropped in 2019.
If GE offers the space for sublease, it would add more inventory to already record levels of office space being listed by tenants in Boston. Local brokerages reported more than 3.6 million square feet of sublease inventory at the end of the third quarter.
GE’s decision to relocate its headquarters from Fairfield, Connecticut to Boston was influenced by $87 million in incentives offered by the Baker administration and later returned by the company.
The development site was acquired by Alexandria Real Estate Equities and National Development, which are constructing a 316,000-square-foot life science tower already leased to Eli Lilly Co.