KING 5: Seattle City Council to vote on converting empty office space into housing

The legislation, sponsored by Councilmember Tammy Morales, would waive land use code requirements for existing non-residential and allow them to be converted into residential use. This applies to all downtown zones, including mixed, midrise, and high-rise, under specific conditions.

According to the Office of Planning and Community Development (OPCD), downtown office space vacancy rates went from approximately 5% in 2019 to 25% this year. The OPCD said the city continues to face a shortage of housing units as average rents have increased by 32% between 2012 and 2022.

The OPCD’s presentation to council members included two of 13 proposals for building conversions, including plans for the historic Smith Tower and the Polson and Western Buildings in Pioneer Square.

OPCD said historic structures from the pre-war era are strong candidates for conversion because their smaller floorplans are better for residential uses.

The legislation comes after Mayor Bruce Harrell called for more housing units in his Downtown Activation Plan last year.

The proposal also comes off the heels of state legislation to create additional housing.

Last year, Gov. Inslee signed legislation into law that removes certain restrictions on adding dwelling units to existing structures. A senate bill passed in the past legislative session created a sales tax exemption for construction projects that convert nonresidential spaces into housing.