Don't put away the champagne just yet. In 2009, there finally might be something to celebrate in Downtown's Fifth and Forbes corridor, long plagued by boarded-up storefronts and low-end retail.

After the collapse of high-profile city-led redevelopment efforts over the past decade, the corridor appears poised to turn the corner, with the completion of several projects that could reshape Downtown in ways not seen since Renaissance II more than two decades ago.

The latest resurgence, totaling more than $300 million, will be built on housing, with nearly 140 units to be finished this year, as well as a mix of office and retail space.

Next month, the first residents will be moving into luxury condominiums at Piatt Place, the former Lazarus-Macy's store, at Fifth Avenue and Wood Street. About four months later, the Three PNC Plaza building, also on Fifth, Downtown's first new skyscraper since 1987, will be greeting its first tenant, the Reed Smith law firm.

By late July, the new Downtown YMCA will open in the former G.C. Murphy store on Fifth, and the first of 46 apartment residents will be settling in, as part of a $40 million transformation.

"When I moved to Pittsburgh 18 years ago, Grant Street was the premier address in Pittsburgh. I think Fifth and Wood is giving Grant a run for its money and really is becoming the center of the universe for Downtown," said Gary Saulson, director of corporate real estate for the PNC Financial Services Group.

The $65 million Piatt Place project already houses two upscale restaurants, the Capital Grille and McCormick & Schmick's. But the linchpin of the development, 58 luxury condos, will come this year, with closings to start next month. Thirty-four of the condos starting at $300,000 have been sold so far.

"To be two months out and to be over 50 percent [occupied] is pretty strong for us. There's been great interest," said Lucas Piatt, vice president of real estate for Washington County developer Millcraft Industries.

Millcraft also is negotiating with the state to occupy three floors in the former Lazarus-Macy's store, which was part of former Mayor Tom Murphy's grand vision for Downtown, once the State Office Building is sold.

Half a block away, Reed Smith will occupy seven floors of the $200 million Three PNC Plaza building. PNC will take four floors. By the fourth quarter, the gleaming glass skyscraper also will host a luxury 185-room hotel to be managed by the famous Fairmont Hotels & Resorts.

There also will be a full-service health club, a day spa, and a restaurant to be operated by Fairmont. In addition, 28 condos, ranging from $500,000 to $3 million, are being built on floors 13 to 23. Mr. Saulson said some units already have been sold, but declined to give a number.

He said there has been huge interest in both the condos and the hotel, with some people already calling to book weddings, conventions and other events. The project, which also features a 344-space underground parking garage, will stretch along the north side of Fifth to Market Street.

On the opposite side, Millcraft hopes to complete the rehab of the Murphy building and several adjoining properties by the end of July.

The Downtown YMCA will move from Boulevard of the Allies to become the lead tenant in the development, occupying 38,000 square feet. But the greatest interest so far has been in the project's 46 apartments, which are expected to rent from $700 to $2,500 a month.

Millcraft will start leasing the apartments in February. Some 350 people have signed a list expressing interest in the units, Mr. Piatt said. The Market Square Place project also will feature 30,000 square feet of ground level retail space.

Herky Pollock, the executive vice president of CB Richard Ellis who is marketing the building's retail space, said a restaurant or "fast casual" food probably will end up in the space. But a proposed small grocer earlier pitched by Millcraft is on the "back burner" after the opening of a similar store in the Encore on 7th apartment building last year, he said.

Some believe the projects already are having an impact on other properties in the corridor.

They point to the $3.3 million rehabilitation of the ornate Buhl Building and an adjacent structure at Fifth and Market Street to be finished by year's end as well as the ongoing makeover of Market Square with new restaurants.

In addition, the Pittsburgh History & Landmarks Foundation is renovating the old Regal Shoe Co. building and two others at Fifth and Market. The development, scheduled for completion next month, will house seven apartments and retail.

"I really think it's a case of a rising tide raises all shops," Mr. Saulson said.

But there's still plenty of work to do, with pockets of distress throughout the corridor, particularly near Fifth and Wood opposite Piatt Place and along sections of Forbes Avenue.

Mr. Pollock believes some property owners are holding out, hoping to make a killing as property values rise in response to development.

He suggested the Murphy administration set the tone for such speculation by offering inflated prices for Downtown properties as part of his ambitious redevelopment plans, none of which materialized.

"I tend to agree that there continues to be long-term speculation happening," added Rob Stephany, executive director of the city Urban Redevelopment Authority. "At some point we would hope to get property owners very excited about what is happening and [they would] want to participate in Downtown's revitalization."

Mr. Stephany said that some cities have imposed "blight taxes" on those who have refused to upgrade vacant or dilapidated real estate and that Pittsburgh might consider doing the same at some point Downtown if problem properties become a hindrance to growth.

But he also noted that in some cases property owners may be stymied by rising construction costs or the economy. Or they simply may be waiting to see if the Millcraft and PNC projects live up to the hype.

"We're in a difficult economy for investment of any kind. It's been slow. Once these three projects take full form, then I think more investment will be made in the Fifth Avenue, Wood Street and Forbes corridor," said Arthur Ziegler, Pittsburgh History & Landmarks president, referring to the Murphy, PNC, and PHLF developments.

Some of the corridor's property owners say they are interested in redeveloping if the right deal comes along.

Harvey Cohen, a Massachusetts dentist who owns the vacant building that once housed the Lerner New York clothing store near Fifth and Wood, said he's had "lots of inquiries but nothing I consider to be worthy of that space."

"Since I think it's a great location, we're going to be patient and try to get a good tenant in there. We've had all kinds of offers from people who wanted to put in more wig salons and video game rooms, but I don't think that's what the city wants. I'd rather get one single tenant in there that's going to take care of the building," he said.

Mr. Cohen is seeking $4.2 million to $4.5 million for the 38,000-square-foot building, a price he said was "reasonable." By comparison, the 181,348-square-foot James H. Reed office building Downtown sold for $6.5 million last fall.

"I looked at what the city paid for other buildings. I look at what can be done to the building. [Developers] can go up many stories," he said.

Mr. Cohen, who has owned the property since 1943, said one developer wanted to assemble his site and others near the corner for an office building, but nothing ever came of it. He said he also had interest from a national restaurant but "they put everything on hold because of the economy."

He and Ted Karabinos, a senior accountant executive at Scott & McCune Co. who is marketing the property, are confident that the right deal will come along with the other redevelopment occurring in the corridor.

But Mr. Karabinos added that neither Mr. Cohen nor Marx Realty and Improvement Co., a New York firm he has worked with that owns the building at Fifth and Wood across from Piatt Place, will be rushed.

"I would say they are not desperate sellers. They are owners of property that are looking for what they feel is a fair return," he said.

Officials at Marx Realty could not be reached for comment. Tenants of the corner building now include a wig shop and two discount jewelry stores.

On the opposite side at Fifth and Wood, David Kashi, owner of Kashi Jewelers, said he has plans to turn the upper floors of the two buildings he owns there into apartments, including some lofts, or possibly a hotel. He said he intends to meet with an architect this month.

He said the proposed development would make the entire building "more welcoming." A nail shop and discount clothing store housed at street level may be removed for the lobby of the new residential complex, he said.

On Wood Street, the former Pizza Hut building, owned by the URA, remains vacant, as are several buildings or parcels on Forbes between Wood and Market Square, where Millcraft has plans to eventually build an 18-story high-rise mixing condos, apartments and retail. The URA has been marketing the Pizza Hut building but has yet to reach a deal.

Peter Sukernek, vice president and general manager of Howard Hanna Commercial Real Estate Services, believes development will come to the rougher spots in the corridor -- in time.

"These things just don't sprout up. Many real estate deals take a long time. If you're going to redevelop something Downtown, you have to find the place, negotiate the transaction, raise funds, get permission from the city to do what you want to do, and all of these things take time," he said.

"I think this will all occur in some kind of orderly natural progression. It will be anchored by the PNC and Piatt Place and Murphy developments and it will grow from there."

At the same time, Mr. Saulson spoke against the idea that all retail Downtown had to be higher end. He said a mix of the inexpensive and upscale make for "a good thriving holistic Downtown."

"I think the fact businesses are in business and generate enough revenue to stay in business and are bringing people to shop Downtown is a good thing," he said.