Ann Arbor Downtown Development Strategies

City of Ann Arbor

Ann Arbor, Michigan

August 2005

to

present

The Ann Arbor City Council, City Planning Commission and Downtown Development Authority are discussing

possible changes to downtown Ann Arbor, including modifications to zoning, building height, and density to

encourage residential and commercial development. Strategic Economics was retained to conduct a market

assessment of the downtown, and to work with Calthorpe Associates to evaluate programming options for zoning

in the area.

Strategic Economics prepared case studies of comparable cities that have increased their downtown housing

supply, looking specifically at the rate of new housing development, how cities overcame barriers to increasing

downtown housing, and the “triggers” that catalyzed downtown development. Strategic Economics used the case

studies and interviews with local brokers, developers, and real estate professionals to project future demand for

housing in the downtown area. The analysis determined the depth of demand among the various market segments

that will drive the downtown housing market in the next 20 years, and projected the development costs

associated with building for each of these market segments. Strategic Economics also evaluated the implications

of additional downtown development for downtown retailers. Ultimately, Strategic Economics and Calthorpe

Associates prepared land use programming and policy recommendations for the downtown.