GE announced the move of its headquarters to Boston in January 2016. In a recent turn of events, however, the company now intends to postpone part of the development in an effort to save money.
The construction of the 295,000-square-foot 12-story tower is on hold until mid-2021, rather than the original 2019 deadline.
According to a company spokesperson, GE would have paid a premium in construction costs by building the tower at the same time. If they delay it until 2019 as part of a second phase rather than starting immediately, "millions of dollars" will be cut from the project's cost.
GE is proceeding with renovation of the two smaller brick buildings, totaling 95,000 square feet, scheduled to be finished by mid-2019. In the meantime, employees are using nearby offices.
"We are committed to Boston and look forward to moving to GE Innovation Point, which will be a hub for innovation and the industrial internet," said GE Vice President Ann Klee.
GE is not changing the scope of the development, and it still plans to employ 800 people there when the project is finished.
Image courtesy General Electric, © Gensler