This paper presents performance of a multiuser MIMO-OFDM (MU- MIMO) system with Fractional Sampling (FS) on a street canyon model. The MU-MIMO system has been investigated to improve the channel capacity in cellular systems. However the capacity of the MU-MIMO is deteriorated in an urban environment such as a street canyon due to a high correlation between antennas. Through FS it is possible to separate multipath components and realize diversity. FS works effectively when the correlation between the users are high. Numerical results through computer simulation shows that the capacity improves with the FS by about 3.5 bps/Hz.