Lisa DeJong, The PD View f ull size The Penton Media Building, right, is reflected in the side of the building at 45 Erieview on the left. The Erieview building, at East Ninth Street and Lake side Avenue , is only 64 percent occupied. It is one of se veral office buildings hit with high vacancy in an area that so me downtow n advocates a re tr ying to redefine a s the NineTwelve District. Downtown advocates aim to rebrand, remake Cleveland's financ ial district Published: Sunday, N ove mber 14, 2010, 11:00 AM Updated: Sunday , Novembe r 14, 2010, 11:57 AM Michelle Jarb oe, Th e Plain Deal er CLEVELAND, Ohio -- Wh il e de velope rs plot a casino o n Pub li c Square , patrons fill restaurants o n Eas t Fourth Street and club- goers flood the Wa rehouse Di stri ct, Cleveland 's o ne-tim e fi nan ci al district sits quiet. Off ice towers around East Ninth Street that once teemed w ith banker s a nd lawyers are plagued with hi gh vacancy r ates and the impending loss of major tenants. Now, a group of dow ntow n advocates is trying to rem ake the a rea with hopes that a cl ea r plan, better parks, reviv ed reta il and access to cheaper parki ng w il l attract new businesse s an d pos iti on the distr ic t for redevelopment as the economy improves. Proponen ts, who are call ing the area the "NineTwelv e Distr ic t," see distress around East Ninth as a rare chance to trans form the central business distric t. Driven b y a 16-member committee rep rese nting the ci ty ofCleveland, the design community, real estate companies and business groups, the NineTwelve effort is mining for opportunities in the rocky landscape along East Ninth and East 12th streets, from Euclid Avenue to Lake Eri e. Out o f 7.4 m il li on squa re feet of offic e space in the district, 2 m il li on squa re feet is empty - - the eq uivalent ofmore th an th ree-and-a-half 52- stori ed Termi nal Towe rs. With a handful of large tenants set to move, 800, 000 additi onal squa re feet could open up by 2013, bringi ng vacancy to roug hly f ive T erminal T ow ers worth of s pace. 11/15/2010 Downtown advocates aim to rebrand, r… blog.cleveland.com/…/print.html?entry… 1/6
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The Penton Media Building, right, is reflected in the side of thebuilding at 45 Erieview on the left. The Erieview building, at EastNinth Street and La keside Avenue , is only 64 percent occupied.It is one of se veral office buildings hit with high vacancy in anarea that some downtown advocates a re trying to redefine a sthe NineTwelve District.
Downtown advocates aim to rebrand, remake Cleveland's financial
district
Published: Sunday, November 14, 2010, 11:00 AM Updated: Sunday, November 14, 2010, 11:57 AM
Michelle Jarboe, The Plain Dealer
CLEVELAND, Ohio -- While developers plot a
casino on Public Square, patrons fill
restaurants on East Fourth Street and club-
goers flood the Warehouse District,
Cleveland's one-time financial district sitsquiet.
Office towers around East Ninth Street that
once teemed with bankers and lawyers are
plagued with high vacancy rates and the
impending loss of major tenants.
Now, a group of downtown advocates is
trying to remake the area with hopes that a
clear plan, better parks, revived reta il and
access to cheaper parking will attract new
businesses and position the district for
redevelopment as the economy improves.
Proponents, who are calling the area the "NineTwelve District," see distress around East Ninth as a rare
chance to transform the central business district. Driven by a 16-member committee representing the city of
Cleveland, the design community, real estate companies and business groups, the NineTwelve effort ismining for opportunities in the rocky landscape along East Ninth and East 12th streets, from Euclid Avenue
to Lake Erie.
Out of 7.4 million square feet of office space in the district, 2 million square feet is empty -- the equivalent o
more than three-and-a-half 52-storied Terminal Towers.
With a handful of large tenants set to move, 800,000 additional square feet could open up by 2013,
bringing vacancy to roughly five Terminal Towers worth of space.
A vacant building at 1015 Euclid Ave. is p art of the JohnHartness Brown Building complex , a stretch of dilapidatedhistoric properties on the north side o f Euclid Avenue. ACleveland Heights inves tor purchased the buildings in 2006 withplans for a redevelopment project that never materialized.
early participant in NineTwelve. "There are a
lot of negative examples of cities that have
lost their downtown core, and it's hurt the
whole region. Obviously, Detroit's one.
When the downtown core revitalizes, it
helps everyone else."
The committee focused on both sides of
Ninth Street and the west side of 12th, from
Euclid Avenue to Willard Park. Notably, the
district omits the south side of Euclid and the
Ameritrust Tower, which would make the
collective vacancy even more daunting.
The East Ohio Building, at 1717 E. Ninth St., is empty. The KeyBank Center, at 800 Superior Ave., could be
largely vacant by 2012. KeyBank and law firm Calfee, Halter & Grisw old are moving out. Early this year,
the property's owner handed off the keys to its lender.
Huntington is scheduled to move in late 2011. Ernst & Young and Tucker Ellis are waiting for the de layed
Flats East Bank project, whose developers still hope to close on their financing this year. Eaton plans to
leave Superior Avenue in late 2012.
Despite the departures, some property owners are committing to the district. PNC has filled space in its
downtown tower by shifting jobs from other properties. And Optima Ventures, a deep-pocketed investor,
has purchased three properties on East Ninth: One Cleveland Center, the Huntington Building and thePenton Media Building.
Flanked by Playhouse Square and development spilling eastward from East Fourth, the district is
surrounded by activity. East Ninth remains a major artery, with the Rock and Roll Hall of Fame and Museum
to the north and access to Interstates 90 and 77 to the south. And some of the troubled buildings would
qualify for tax credits related to historic preservation and investment in low-income areas, making them
potential targets for redevelopment.
"In most real estate, you hear 'Location, location, location,'" said Kevin Piunno, U.S. leasing director forOptima. "We've got the location. Now it's a matter of reinventing it a little bit, polishing it up and marketing
it."
Promotions, parks, people and public transit
This year, advertising and public-relations firm Liggett Stashower came up with the NineTwelve District
brand, meant to represent a mixed-use neighborhood rather than a corporate center. This re-branding is
A group of NineTwelve committee members is studying the costs of the plan and considering potential
funding sources. The first priorities are paying for park improvements, food carts and the expanded trolley
system. But the group also will examine private and public ways to assist with improvements to viable office
buildings and transformation of obsolete ones.
"We're working with a variety of brokers on the different buildings and getting a better idea of what the
highest and best use is for any of these properties," said Tracey Nichols, the city's economic development
director. "We're trying to market the properties and work with developers to see what we can make
happen here."
Some buildings could be split into a mix of uses. Others, with smaller floors, might be attractive candidates
for apartment developers. Such conversions would bring down the supply of available office space to better
meet reduced demand. And with less vacancy downtown, landlords might be in a better position to fill the
remaining offices.
Members of the NineTwelve committee said they are focused on making the area more attractive to growing
companies, particularly those w ith young workers who want to be in an urban environment.
But they point to other parts of the city, including East Fourth and the Warehouse District, to show that
Cleveland does not have to be bound to its past. Dingy storefronts can become acclaimed restaurants. Old
warehouses can become apartments. And a former financial district can continue to be a place for work --
but can become one where people also live, dine, visit and linger.
"I happen to feel, and I know others on this committee feel very strongly, that change is good," said Paul
Westlake, of Westlake Reed Leskosky. "Change often in Cleveland is a symbol of poor hea lth. But I thinkyou have to remember the words of Harry Truman, who said a pessimist is a person who sees an
opportunity as a problem, and an optimist is a person who sees a problem as an opportunity."