5 Economic Development Projects to Watch in Ann Arbor

Ann Arbor is in the middle of some big changes. Across the city, underused parking lots are becoming housing, longtime commercial corridors are evolving into walkable neighborhoods, new investments are reconnecting downtown to the Huron River, and new businesses are bringing fresh energy to familiar blocks.

Taken individually, each project fills a specific need. Together, they tell a bigger story about where Ann Arbor is headed - adding housing at a range of price points, creating more vibrant and connected neighborhoods, supporting local businesses, and making better use of some of the city's most valuable land.

Here are five economic development projects and areas to watch as they take shape - and what they could mean for the people who live, work, and spend time here.

350 S. Fifth Ave (The "Old 'Y' Lot")

What's Happening?

The vacant "Old 'Y' Lot" will begin its transformation this summer into a 20-story residential tower with 330 apartments, entirely designated as affordable housing for individuals and families earning between 30 to 80% of the area median income. The building features full electrification, a geothermal heating system, a solar-ready roof, and includes a new AAATA bus platform and integrated transit amenities on the ground floor.

The $200+ million project is being undertaken as a partnership between the Ann Arbor Housing Commission and real estate development company Related Midwest.

The section of Fourth Avenue adjacent to the project is also being completely rebuilt to feature widened sidewalks that accommodate expanded outdoor dining for local business use, larger transit waiting areas, upgraded lighting, and enhanced pedestrian amenities.

Neighborhood Impact:

This project is a major win for local housing equity, and because it sits right next to the Blake Transit Center, future residents will be able to easily commute, shop, and live downtown without needing to rely on a car. This is a big step forward to making the heart of Ann Arbor accessible to more of the people who work and build their lives there. All surrounding businesses will remain open throughout construction, so please continue to visit and support them this summer.

309 S. Ashley (Kline's Lot)

What's Happening?

Plans are moving forward to transform the City-owned "Kline's Lot" surface parking lot, located just off Main Street, into a high-density development featuring more than 450 new apartments and vibrant street-level commercial spaces for shops, restaurants, and other neighborhood-serving businesses. The City selected Hines, the developer currently completing The Harlan apartments at Briarwood Mall, to lead the project.

Neighborhood Impact:

This project swaps asphalt for something. Beyond adding much-needed housing to support local businesses and downtown activity, the proceeds from the City's sale of the land will help fund future community infrastructure and affordable housing initiatives across Ann Arbor.

South State Street Corridor: Arbor South and Briarwood Mall

What's Happening?

Several major public and private investments are reshaping the South State and Eisenhower area. Arbor South will convert more than 17 acres of surface parking into a mixed-use neighborhood with more than 1,000 apartments, a hotel, ground-floor retail, public gathering spaces, and new streets and pedestrian connections. Construction is expected to begin in 2027.

The Briarwood Mall redevelopment will add 370 apartments, new shops, and a full-service grocery store featuring locally sourced produce. Construction is scheduled to wrap up this summer.

The City of Ann Arbor and the Southside Business Improvement Zone (BIZ) will also replace decades-old, deteriorating medians in State Street with sustainable landscaping and visual improvements. Construction will begin in fall 2026. Nearly half of the city's commuters pass through this corridor each day, and it is a primary entry point for visitors, so these improvements will provide a much-needed enhancement ot a key gateway.

Neighborhood Impact:

Together, these projects will transform the South State and Eisenhower corridor from an area dominated by suburban strip malls and expansive parking lots into a walkable, mixed-use neighborhood. New streets, apartments, shops, public spaces, sidewalks, and bicycle and pedestrian infrastructure, organized into walkable city blocks, will turn an area into a "place" that will be a magnet for residents and visitors alike.

The Riverfront and North Main Corridor

What's Happening?

A former industrial site along the Huron River is being transformed into a new public riverfront destination through the Broadway Park West project. New pedestrian trails, a bridge connection, and a public lawn have already opened, creating new ways for residents and visitors to reach and enjoy the river. The next phases of development are preparing to move forward and will include a pavilion, apartments, a hotel, retail space, and additional public gathering areas. The project is being led by the Detroit-based Roxbury Group and the Lower Town Riverfront Conservancy.

At the same time, the City is studying North Main Street to identify opportunities to improve safety, access, and mobility along this important gateway into downtown. The study is focused on potential traffic-calming measures, safer pedestrian crossings, and stronger bicycle and pedestrian connections between downtown, the riverfront, nearby neighborhoods, and the broader trail system.

Neighborhood Impact:

Together, these efforts will help make the Huron River feel like a true extension of downtown and will help to knit together nearby neighborhoods north and south of the river. New public spaces and improved connections will make it easier and safer for people to walk, bike, and travel between downtown, parks, trails, and the river.

As the riverfront development takes shape and improvements to North Main Street are considered, the area has the potential to become a more welcoming and active gateway to the city. The result will be new places to gather, recreate, live, and visit along one of the community's most important natural assets.

New Businesses Downtown

What's Happening?

Alongside the cranes and construction sites, downtown continues to evolve one storefront at a time, with new restaurants, retailers, and services adding fresh energy to familiar blocks.

With Summer Streets in full swing, it is a great time to see what is new and what is coming next. From vegan-focused Unburger on the ground floor of The Yard on South Main, to Toledo-based Stubborn Brother Pizza at Main and William, to Quix Chocolate moving into the former Kilwin's space, the future is looking pretty tasty. It is also a great time to revisit some of downtown's newer favorites, including Coratti's on East William and TAQ in its newly expanded space.

Together, these businesses are adding new flavors, new experiences, and new reasons to spend a little more time downtown.

Neighborhood Impact:

New businesses contribute to a continually evolving mix of dining, shopping, and service experiences downtown. They keep the area active from the morning coffee rush through dinner and beyond. Busy storefronts also bring more foot traffic, support neighboring businesses, and make downtown streets feel more lively and welcoming.

Economic development is not only about cranes, construction, and large buildings. It is also about helping the small and local businesses that give downtown its character open, grow, and thrive. These are the places that make a quick errand turn into an afternoon downtown, introduce a new favorite meal, and keep the heart of our community feeling distinctly like Ann Arbor.