
Old business districts emerging as mixed-use neighborhoods
The United States had a distinct manufacturing advantage in a post-World War II global economy as it was the only developed country on the planet that, unlike European countries and Japan, hadn’t sustained massive damage to its major cities.
Cities like Cleveland, as well as Pittsburgh, Detroit, Chicago, and others became manufacturing strongholds in the Eisenhower era, but that began to shift in the latter half of the 20th century and toward the end of the century, many once thriving industrial, retail, and office centers, including those in Cleveland, were a shell.
Today, iconic places like The Bell and the Terminal Tower have been repurposed into residential uses and demonstrate Cleveland’s success at making the transition, according to Michael Deemer, president and CEO of Downtown Cleveland.
“Beginning in the mid-20th century, Cleveland and other major cities experienced decades of population and business movement to the suburbs,” Deemer told the Cleveland Jewish News. “Automobile ownership, highway construction, federally supported mortgages and suburban development reduced demand for downtown commercial and retail space.”
But Cleveland began turning that challenge into an opportunity in the 1980s and 1990s as developers converted vacant and obsolete buildings into apartments and mixed-use properties, according to Deemer.
“These early projects demonstrated demand for downtown living and established a model that could be applied to historic buildings,” he said.
Tax credits, tax abatements and other financing tools helped make conversions viable.
“The result has been Downtown Cleveland’s steady transformation from a traditional central business district into a mixed-use neighborhood,” Deemer said.
Since 2013, abut 35 downtown buildings have been converted or repositioned, including former department stores, office towers and warehouses that now function as apartments, hotels, and mixed-use properties, according to Deemer.
These conversions include The Halle Building, a former department store that today contains 122 apartments, offices, and ground-floor commercial space; The May, another former department store converted into apartments; The 9, a former Ameritrust complex that today houses a hotel, apartment units, offices, and a restaurant; The Bell, Ohio Bell’s former headquarters that today houses more than 300 apartments; The Garfield, also converted into apartments; and the Athlon, the former Cleveland Athletic Club converted into apartments.
“Together, these projects demonstrate Cleveland’s ability to give obsolete buildings productive new uses,” Deemer said.
The influx of these new residents in downtown Cleveland represent a cross-section of demographics and collectively support a new crop of businesses in the city’s core, according to Deemer.
“New residents have supported restaurants and retail, attracted investment and created activity beyond the traditional workday,” Deemer said.
Downtown attracts residents across generations, including students, young professionals and empty nesters, according to Deemer.
“Gen Z renters value convenience, connectivity and neighborhood amenities. Older renters often want the same urban experience without the maintenance of a single-family home,” Deemer said.
“One of Cleveland’s greatest advantages is the ability to offer distinctive residences in historic buildings at rents below those in many comparable city centers,” Deemer said.
Downtown Cleveland has typically absorbed 400 to 450 new apartments annually over the past decade and nearly 900 units were added during the last year, temporarily lowering occupancy to approximately 87 percent, according to Deemer.
“Occupancy should rise as that unusually large wave of new supply leases up,” Deemer said.
Cleveland has proven to be a national adaptive-reuse leader as about 35 downtown buildings totaling more than 7.4 million square feet have been converted since 2013, but other projects lie ahead, according to Deemer.
“Potential future projects include the Rockefeller Building, Diamond-Shamrock Building and The Tower at Erieview,” Deemer said.
A. Kevin Corvo is a freelance journalist.