Systems in Motion chooses Valley Ranch office for expansion into Ann Arbor area

Systems in Motion will use a seven-year, $7.4 million state tax credit to establish a $15 million operation, growing it to an estimated 1,085 employees within five years.

California-based Systems in Motion is an information technology services company. Local officials describe the decision to open in the Ann Arbor area as "on-shoring," or the reverse of shipping technology support jobs to other countries.

Once fully functional in this region, Systems In Motion could be the area's largest IT employer.

After a months-long search, the new office landed at Valley Ranch, a 250,000-square-foot complex near Ellsworth and Lohr roads owned by The McMullen Companies. The business park is located across Ellsworth from the northwest corner of the Ann Arbor Municipal Airport.

Ted McMullen said he planned to meet with SIM officials Wednesday and Thursday to finalize details of the move into the building known as The Ponds South.

The office had been vacant since the former Proquest consolidated its operations several years ago. Additional offices in the buildings are under lease to Aernnova Engineering US Inc, an aerospace company that opened in 2007 in Ann Arbor.

Both Aernova and SIM worked with Ann Arbor SPARK to open facilities in Ann Arbor.

"I'm thrilled at how Ann Arbor SPARK is really having an influence on bringing companies into the state," McMullen said.

At year-end 2008, the area's office vacancy rate was 14.75 percent, while the South market - including Valley Ranch - was 19.92 percent, according to Swisher Commercial.

With this deal, McMullen estimates that Valley Ranch vacancy is about 16 percent vacant.