New Mixed-Use Development Approved for State Street Corridor

The Ann Arbor City Council has approved a $180 million mixed-use development project along the South State Street corridor between Eisenhower Parkway and Oakbrook Drive. The project, developed by local firm Morningside Group, will include 200,000 square feet of Class A tech-ready office space, 300 residential units, ground-floor retail, and a public plaza with green space.

"This project is designed specifically to serve the needs of Ann Arbor's growing tech workforce," said Morningside Group CEO David Park. "Every office floor is built for modern tech companies — raised floors for cable management, redundant fiber connectivity, flexible floor plates, and collaborative spaces. We've already received strong interest from several growing tech firms looking to expand in Ann Arbor."

The residential component includes a mix of studio, one-bedroom, and two-bedroom units, with 15% designated as affordable housing per the city's inclusionary zoning requirements. The project also features a 500-space parking structure with EV charging stations on every level and a dedicated bike commuter facility. Construction is expected to begin in fall 2026 with the first phase completing by early 2028.

The development is part of a broader transformation of the State Street corridor, which has seen several major projects approved in recent years. Urban planning experts note that the corridor's proximity to both the University of Michigan campus and the southern tech office cluster along Research Park Drive makes it an ideal location for mixed-use development that bridges the city's academic and commercial tech sectors.