The City of Seattle is taking significant steps to fill empty storefronts and support businesses looking for new commercial space. A new law, CB 121047, is changing the City’s building code, specifically how “substantial alterations” are handled. This reduces the time, cost, and complexity for small businesses looking to open or move into spaces that have had long-term vacancy. This reform addresses long-standing barriers that have kept many commercial properties vacant.
Under the previous law, even minor changes to vacant spaces were often labeled as a “substantial alteration.” This label required the leasing business owner to make expensive, building-wide upgrades, including covering seismic and fire safety systems, and being energy code compliant. The requirements also applied if the type of new business taking over the space was the same or similar to the previous tenant.
This means if a coffee shop owner wants to move into your neighborhood building that’s been vacant for what feels like forever, they can do it faster, cheaper, and easier than before. The yoga studio or wine bar that would be the perfect addition to your neighborhood business is now easier to open without incurring extra permitting costs to open and serve the community.
The new legislation introduces several key updates to streamline this process:
- Size exemption: Projects in spaces under 7,000 square feet are now exempt from the substantial alteration requirements.
- Vacancy trigger elimination: A property vacant for over 24 months will no longer automatically trigger a substantial alteration review.
- Clearer hazard rules: A project is only considered a “more hazardous use” if the new use is riskier and the project area is over 20% of the building’s total size.
- Energy upgrade exemptions: Standard energy-efficiency upgrades, like installing a heat pump, will not trigger a substantial alteration on their own.
These changes aim to turn “For Lease” signs into “Grand Opening” banners across Seattle. We understand the sense of urgency for a small business owner regarding the anticipation of opening a new business. Every day between signing the lease and opening the storefront matters. By creating clearer, more predictable rules, the City is making it easier for small businesses to open and for landlords to fill their vacant properties, fostering more vibrant and walkable neighborhoods for everyone.
Find out what this means for business owners in part 2, and what this means for property owners in part 3.