US 31/M-37 enters the south side of Traverse City near the intersection with South Airport Road and the Grand Traverse Mall. As the highway heads towards Grand Traverse Bay and downtown, it passes several car dealerships, an outlet mall and other retailers. After the city limits, the roadway is also given the name Division Street. North of 14th Street, US 31/M-37 passes the former Traverse City State Hospital, a Kirkbride Plan former mental asylum. This section of town is mostly residential except for the old state hospital and Munson Medical Center. North of Front Street, Division Street meets Grandview Parkway. This roadway runs along the bay from the northwest carrying M-22/M-72. When the two streets meet, M-22 ends, and US 31/M-37 and M-72 merge into a triple concurrency along the bay north of downtown Traverse City. Grandview Parkway passes the Open Space park, the marina, the former Clinch Park Zoo and runs along a narrow piece of land between the Boardman River and the bay. Grandview Parkway ends east of the mouth of the river, and the highway continues along Front Street past the Great Lakes Maritime Academy and the home berth of the TS "State of Michigan" to Garfield Avenue near the campus of Northwestern Michigan College. M-37 turns north along Garfield Avenue to Peninsula Drive, leaving US 31/M-72.