Developer Boston Properties is set to break ground by September on a 280-unit residential complex in the first phase of its Cambridge Center redevelopment in Kendall Square.

The 216,000-square-foot project at 88 Ames St. also will include up to 16,000 square feet of retail space.

The first phase of work – relocation of utilities – will begin in September and last through March when the building construction is scheduled to begin, according to a notice posted by Boston Properties on the coUrbanize community planning website.

“Our research thus far indicates significant demand for smaller units, which will in turn relieve some of the pressure on existing larger units elsewhere in the city,” the company wrote.

Retail leasing will begin in 2016 and reflect the public desire for a pharmacy or grocery store, Boston Properties said.

Cambridge officials approved a special permit for the project in March. Plans call for the construction of 22 floors of residential units on a parcel in front of the 844-space Cambridge Center East garage. The city of Cambridge is selling a 20-foot strip of Ames Street to Boston Properties for $2 million to widen the development site. The East Garage would be reconfigured slightly to accommodate the new building, resulting in the loss of 40 parking spaces.

The Cambridge Redevelopment Authority has sought to expand commercial development in Kendall Square, where vacancies for office and lab space are in the low single digits.

On Wednesday, the CRA board voted to submit a zoning petition to the city allowing an additional 540,000 square feet of commercial and 400,000 square feet of residential development in Kendall Square, CRA Executive Director Tom Evans said.