Seattle’s downtown recovery gains momentum despite empty storefronts

(The Center Square) – Last month, downtown Seattle had its highest rate of monthly worker foot traffic since the COVID-19 pandemic began, but high vacancy rates still linger.

According to the latest data from the Downtown Seattle Association, downtown worker foot traffic in July 2025 was 66% of July 2019’s daily average. There were more than 154,000 daily workers in the area last month, a 7% increase from July 2024.

DSA President and CEO Jon Scholes said downtown’s recovery is “experiencing significant momentum” with metrics moving in the right direction. Public safety in the downtown area is also improving this year.

In July, violent crime incidents downtown declined 51% compared to the same period through 2024. The DSA cites a sharp drop in aggravated assaults for the overall decrease in violent crime in the area.

However, Scholes said downtown is still fragile with continuing challenges in the form of high office and retail vacancies.

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In the second quarter of this year, the Seattle Office Demand Index, as reported by the commercial real estate platform VTS, was 32% of the 2018-19 average. This was the lowest among tracked cities as overall demand in the U.S. was 70%.

“Those circumstances ultimately will negatively affect the city’s tax base if not urgently addressed,” Scholes said in a statement.

The area’s vacancy rates could improve as 11 new retailers and restaurants opened in the downtown area between July 1 and Aug. 12. According to the DSA, that’s more than double the five openings in the area between May 1 and June 30.

Seattle officials are pushing reforms to the city code in order to lower the vacancy rates downtown. This includes two recently announced proposals from Seattle Mayor Bruce Harrell and City Council President Sara Nelson, which would amend the city’s building codes and help reactivate vacant storefronts in the city.

The proposed bills would exempt buildings with up to 7,000 square feet of space from substantial alteration standards under the 2021 Seattle Existing Building Code. If approved by the city council, the building code changes allow small businesses to make tenant improvements or reopen a vacant commercial space without having to update the building to current fire or life safety standards.

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