Seattle Clears the Path for Office-to-Residential Conversions — And the Numbers Are Moving
Seattle passed Council Bill 120937 in February 2025 to incentivize the conversion of underutilized commercial properties into housing, waiving parking mandates, setbacks, floor area ratio limits, and design review requirements for qualifying projects. In its first year, the city approved sales tax deferrals for three conversion projects, with the Office of Planning and Community Development reporting additional developers are actively exploring similar moves. The push is already reshaping downtown’s character: Seattle’s downtown residential population has reached nearly 110,000 people — an 80% increase since 2010 — with more than 3,300 multifamily units currently under construction in the city center. Analysts estimate the conversion-friendly policies could deliver 1,000 to 2,000 additional homes over the next seven years.
