PlayhouseSquare Real Estate Services Helps The Community

PSF Management, the area development division under the umbrella of PlayhouseSquare, has changed their corporate name to "PlayhouseSquare Real Estate Services." The change was made to better identify their role in meeting the area development mission of PlayhouseSquare, which was established to benefit the greater good of the community, while serving as an opportunity to enhance earned revenue for the not-for-profit organization. The Real Estate Services staff has also relocated from their offices in the Hanna Building to the PlayhouseSquare office suite in the Bulkley Building, bringing them physically closer to the administrative division of the organization and enhancing communications and shared services between departments.

The responsibilities of the Real Estate Services division include: Managing and leasing properties owned by PlayhouseSquare, acting as consultant on area renovation, construction and historical preservation, acquiring properties near the theaters for repurposing, partnering with regional organizations to develop, maintain and enhance the downtown areas relevant to the theater neighborhood, and spurring other area development projects such as the proposed District of Design, the co-development of the Wyndham Hotel and the current redevelopment of Euclid Avenue.

"Our area development mission is closely tied to entertainment, which is the core of what we do," says PlayhouseSquare's President and CEO, Art Falco. "The stages are what draw people to the area, but not without dining options, a place to stay, adequate parking, businesses, cleanliness and safety. People seeking a home for their business or looking for entertainment expect an active, thriving area. Acting as an economic engine for downtown by taking on the role of developer for the area around PlayhouseSquare is one we are compelled to play in order to provide a lively, welcoming neighborhood for our visitors," says Falco.

More importantly, the Real Estate arm serves as one means to earn income for the country's largest performing arts center outside of New York. {PlayhouseSquare earns 90% of their income. The performing arts industry averages 74%}. "In reality, income from ticket revenues represents a very small portion of what we earn. Even blockbusters are not enough to sustain us. As a not-for-profit cultural institution, we rely on funding and donations. But we believe in a fiscally conservative and responsible business model that allows us to support ourselves as much as we can in order to be less of a drain on community resources," Falco continued. The model is completely unique and the first of its kind in the performing arts industry.

In 1999 and 2000, PlayhouseSquare Real Estate Services acquired loans for two properties {Hanna and Bulkley Buildings respectively}, in order to secure the storefront space for businesses that complimented the environment. "Because of their location to the Palace, State and Allen Theatres, both buildings were strategic to the development of the PlayhouseSquare District," says Thomas Adler, Chairman of the Board of Trustees.

Now, both buildings, along with the Idea Center at PlayhouseSquare {acquired via bequest} are over 80% occupied, with 1000 new employees. "Those are 1000 people who park, dine out and spill onto the sidewalks to create a lively atmosphere by day before the theatergoers arrive at night," he added.

The expertise acquired by PlayhouseSquare has allowed for additional business opportunities located outside of the PlayhouseSquare District. As a full-service asset, facility and non-profit property management company, PlayhouseSquare Real Estate Services now manages 17 buildings in Northeast Ohio and counts AmTrust North America, Automated Packaging Systems, Inc., and Crescendo Commercial Realty among a rapidly growing roster. In addition, PlayhouseSquare's real estate professionals have provided real estate management consulting services for companies such as Progressive Insurance, Avery Dennison Corporation and the Center for Children and Family Services, just to name a few.

Setting the pace for the rest of the country, the PlayhouseSquare area development model for earned income is one-of-a-kind and has been adopted and/or adapted by others. "PlayhouseSquare has changed the way performing arts centers view their business model. As non-profit institutions relying on reduced funding and corporate support, area development has created a means for us to maintain our operations. But more important, in Newark, New Jersey, we've been able to show that the arts can infuse energy and positive growth as well as economic stimulation into its surrounding community. Following the PlayhouseSquare lead has helped us to do that when others thought we could not," stated Lawrence P. Goldman, CEO and President of the New Jersey Performing Arts Center.

Aesthetics also play a role in the environment created by PlayhouseSquare Real Estate Services. In fact, the recently completed RTA HealthLine project included streetscape plans submitted to the city by PlayhouseSquare after commissioning an earlier study for the theater area. Now that the imaginative renovation of the Hanna Theatre is complete, East 14th Street will experience new aesthetic treatments to the sidewalks, and gateways to PlayhouseSquare, along with other visual senses of arrival planned for the near future.

Being a tenant in one of the buildings managed by PlayhouseSquare also means special privileges one would not receive in other neighborhoods. The PlayhouseSquare Perks program includes a membership card given free of charge to tenants only of PlayhouseSquare managed properties. The card entitles the holder to deep discounts on theater tickets, area restaurants, chances to win prizes and more. During a recent event held in front of the theaters to celebrate the kick-off of a new season, tenants had the first opportunity to get a free t-shirt, join "Cleveland's longest kick line" and meet the famous Radio City Rockettes. And all summer long, free lunch events and entertainment can be found on Star Plaza, the public gathering space for PlayhouseSquare.

"The PlayhouseSquare reputation was one of the reasons we chose to relocate our offices to the theater district," says Micki Tubbs, President of FIT Technologies. "Our staff enjoys being in the heart of an area that is thriving. The PlayhouseSquare Real Estate Services staff has done a great job creating an environment that is not only safe but also vibrant, and provides a warm, neighborhood kind of feel," shared Tubbs."