Effective October 23, 2025, Seattle will make it easier for businesses and developers to occupy a vacant storefront. The City has amended its building code to ease renovation rules that govern when a building must be updated to current building codes. Through key changes to the Seattle Existing Building Code (SEBC) and an overhaul of permit processing timelines, the City aims to reactivate vacant storefronts and support economic recovery, particularly for small businesses.

These updates provide significant relief from complex requirements and introduce more predictable timelines for project reviews. While the changes are expected to foster a more vibrant business landscape, they also come with acknowledged trade-offs regarding building resiliency and energy standards.

Easing the Burden of “Substantial Alterations”

One of the most impactful changes comes from amendments to the 2021 Seattle Existing Building Code. The ordinance specifically targets the “substantial alteration” rules, which have often placed a heavy financial and logistical burden on small-scale projects. Previously, when a project was designated a substantial alteration, it triggered expensive and time-consuming requirements to upgrade a building’s fire and life safety systems, structural integrity, and ventilation to meet current codes.

The new legislation introduces three key reforms:

1. 1. Size Exemption: Exempts buildings and tenant spaces 7,000 square feet or less in gross floor area from substantial alteration requirements. This is a major change, as many small retail shops, cafes, and offices fall well below this threshold.
   2. Occupancy Change Clarification: A change in how a space is used (e.g., from an office to a retail shop) will no longer trigger a substantial alteration review if the affected area is 20 percent or less of the total building area.
   3. Removal of Vacancy Trigger: The rule that automatically classified a project as a substantial alteration if the property had been vacant for more than two years has been eliminated. This removes a significant barrier for entrepreneurs looking to revive long-empty storefronts.

According to a review by the Seattle Department of Construction and Inspections (SDCI), these changes will have a considerable impact. Looking at permits from the last eight years, the department found that the 7,000 square foot exemption would have eliminated the need for a substantial alteration permit in approximately 44% of projects vested to the 2015 code and 53% vested to the 2018 code. If permit volumes remain steady, the City estimates this legislation could help reactivate over 50 small commercial spaces by 2030 (Seattle City Council, CB 121047 Summary & Fiscal Note).

However, the City acknowledges a potential downside. Lifting substantial alteration requirements for smaller projects could impact the City’s long-term goals for resiliency and net-zero building emissions. Despite this, SDCI, the Office of Economic Development (OED), business stakeholders, and community organizations widely support the legislation as a necessary step for economic recovery. The changes apply to projects vested in the 2021 SEBC and are not retroactive.

Faster, More Predictable Permit Timelines

Complementing the building code reforms is a separate ordinance that aligns Seattle’s land use permit review timelines with state law. This move is intended to create predictability and reduce the long waits that can stall or kill a project. This legislation will be effective on November 24, 2025.

The new default deadlines for city review are:

• • 65 days for Type I permits that do not require public notice or a hearing.
  • 100 days for Type II permits that require public notice but no hearing.
  • 170 days for Type III permits requiring both public notice and a public hearing.

The legislation includes several important clarifications. For projects requiring multiple land use permits, the longest timeline will apply. Additional time is allowed for more complex reviews, such as those involving Design Review, environmental (SEPA) determinations, and Major Phased Development permits. And special exemption permits. The review clock can also be paused at an applicant’s request or restarted if the project is significantly altered. Additionally, if the applicant substantially alters the project, the permit clock restarts.

The bill also amends the determination of completeness provisions in the Seattle land use code. If permit submittal requirements are met, the City’s need for additional information or studies from the application may not preclude a determination of completeness.

Notably, certain projects are exempt from these timelines, including public projects, those involving historic resources, and shoreline exemptions, variances, and conditional use applications. The ordinance also reinforces that permit fees must be paid for a Master Use Permit application to be considered complete, and non-payment will stop the review clock.

To implement these changes, the City will update its Accela permit tracking system.

What It Means for Small Businesses

Together, these two ordinances represent a significant shift in Seattle’s approach to development and business activation. By reducing red tape and setting clear expectations, the City is making it easier and faster to get small businesses off the ground and to reactivate vacant buildings.

For prospective and current small business owners, the key takeaways are:

• • Reduced Costs: Renovating a small commercial space (under 7,000 sq ft) is now far less likely to trigger costly, full-building upgrades.
  • More Opportunities: Long-vacant storefronts are now more attractive for investment without the automatic trigger of substantial alteration requirements.
  • Greater Predictability: New state-aligned permit review deadlines mean applicants have a clearer sense of how long the City will take to approve their projects.
  • Faster Path to Opening: The combination of code relief and streamlined timelines should shorten the journey from lease signing to opening day, saving businesses time and money.

This article summarizes aspects of the law and opinions that are solely those of the authors. This article does not constitute legal advice. For legal advice regarding your situation, you should contact an attorney.