SEATTLE — A Seattle City Council committee discussed a proposal Wednesday that would allow the conversion of vacant office space downtown into new housing units.
The legislation, sponsored by Councilmember Tammy Morales, would waive land use code requirements for existing non-residential allowing them to be converted into residential use. This applies to all downtown zones, including mixed, midrise, and highrise, 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. 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.
The Polson and Western Buildings proposal would convert two floors and create a shared, central courtyard.
According to the proposal, adding individual plumbing for each new unit would be a major cost driver, leading to a floor plan where several units would share facilities like bathrooms, kitchen, living and laundry. The proposal suggests rents could be similar to rent-restricted affordable housing units.
The Smith Tower conversion proposal would transform its floor plan to accommodate studios, one-bedroom, two-bedroom, and three-bedroom apartments. The square footage of units could range from 528 to 845, with rent ranging from $1,900 to $3,600.
OPCD said historic structures from the pre-war era are strong candidates for conversion because their smaller floorplans are better for residential uses.
The committee could vote on forwarding the legislation to a full council vote at a special meeting on June 21.
The legislation comes after Mayor Bruce Harrell called for legislation to increase 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 into law legislation that removes certain restrictions on adding dwelling units to existing structures. A senate bill passed this past legislative session created a sales tax exemption for construction projects that convert nonresidential spaces into housing.