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Seattle is expanding its program to temporarily fill pandemic-emptied commercial spaces with art and more — Capitol Hill might not need it

A 2016 temporary activation on 11th Ave created the V2 dance and arts venue

By Hannah Saunders

A City of Seattle program created to fill in the city’s commercial spaces left empty by the economic ravages of the COVID-19 pandemic is looking for locations to activate on Capitol Hill — but it might not be needed.

After finding success with Phase 1 of the Seattle Restored program, which works to activate vacant commercial storefronts following COVID-19 related closures, Mayor Bruce Harrell and the Office of Economic Development announced the expansion of the program. The goal of the expansion is to activate 45 vacant commercial storefronts beyond the downtown neighborhoods.

Karissa Braxton, communications director for the City of Seattle, said the program was a success downtown and is hoped to move into other neighborhoods of the city.

But commercial real estate pros say Capitol Hill might not have room for temporary popups and art projects.

Jill Cronauer of Hunters Capital, a boutique real estate company committed to historic preservation and development and owner of nine properties on Capitol Hill, said that demand is strong for space in the neighborhood.

“We’re a lot more open than we were two years ago,” said Cronauer. “I think that Capitol Hill, for all the trauma it endured during the last two years, it was one of the quickest ones [neighborhoods] to bounce back.”

Others apparently agree. The Puget Sound Business Journal reports Seattle brokers are calling competition for Capitol Hill retail space “arguably the fiercest in Seattle.”

Cronauer said the COVID-19 pandemic greatly impacted many businesses but landlords and assistance programs helped commercial tenants keep the Capitol Hill commercial landscape intact.

As for the Seattle Restored program expansion, Cronauer said Hunters Capital has not yet become involved, although they’ve been keeping tabs on the 15th Ave E building left open by the abrupt 2021 exit of QFC.

“We would love to see that space activated, but they still hold that lease,” Cronauer said.

Temporary activations and pop-ups have helped keep important stretches of Capitol Hill from turning into boarded-up blocks in the past and have created some interesting opportunities for events and activities over the years.

An ambitious program activated commercial properties being prepared for demolition — including the old Broadway Jack in the Box — as art spaces during construction of Capitol Hill Station in the late 2000s.

Another example is the creation of V2, a temporary dance and arts space led by Velocity Dance that kept the old Value Village building alive as a temporary performance venue before its redevelopment.

The first phase of Seattle Restored supported the activation of 35 vacant storefronts with pop-up shops and art installations, but Phase 2 of the program will allow for additional types of activations with not only pop-up shops and art installations, but also QR code window shopping, collective pop-up shops and restaurant pop-up residency.

“Every vacancy has its own story and own solution, but this is an opportunity to activate some of those vacant spaces,” said Braxton. “We’re looking forward to see what may be able to happen in Phase 2.”

Braxton says the program is hoped to benefit BIPOC, woman-owned, and LGBTQ+-owned businesses that tend to come across greater barriers when accessing commercial space, she said.

“If you’re a new business or a start-up, or operating from a home where you haven’t had that high overhead, it can be particularly difficult to get into some of these commercial spaces,” said Braxton. “By matching with these vacant properties, the Seattle Restored program is actually helping to pay the rent.”

Phase 2 program participants will receive $2,500 in working capital to assist with setting up the commercial space and support including commercial space development, marketing strategy development and execution, and other forms of technical assistance such as product inventory management. Participants selected for collective pop-up shops will receive $1,500 as a direct payment.

Phase 2 activation emphasis will be on neighborhoods such as Little Saigon, Ballard and Southeast Seattle, in addition to Downtown, Pioneer Square, Belltown and Chinatown-International District.

“We do not currently have any Capitol Hill locations confirmed, but it is one of the neighborhoods into which we are looking to expand,” said Andrea Porter, Program Manager for Seattle Restored. “We are contacting various groups and individual property owners to gauge interest. We feel confident we will find some partners.”

Porter said Phase 2 will feature 45 activations. Several of the venues from Phase 1 have been extended beyond the initial three month terms, with anywhere from six to nine months of total activation, she said.

“These extensions are decided on a case-by-case basis, pending interest from participants and property owners,” said Porter. “The hope is that many will return into long-term leases and become permanent brick and mortar locations.”

Competition could be substantial. Shunpike, which helps coordinate and administrate the program, says the first phase received more than 270 applications. It expects even more to roll in before the second phase’s August 26th deadline.

By mid-October, the new activations will be placed. For more information or to apply visit seattlerestored.org.

 

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6 Comments
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Matt Sweeney
3 years ago

Weird headline. It makes it seem like Cap Hill doesn’t need temporary art spaces, but the article makes it clear the actual issue is there isn’t any space available.

Capitol Hill needs art spaces.
3 years ago

Landlords of the some of the new buildings that are leaving retail spaces vacant for years to artificially inflate the cost of the building before they flip it and/or for a tax write-off should be fined. This program should be offered as an alternative. We need more art spaces and fewer vacant storefronts. This program is definitely needed on Capitol Hill.

Glenn
3 years ago

Why would they want to artificially inflate the cost of the new building by leaving a retail space vacant? That does not inflate the cost of the building, it just affects it’s gross revenue numbers and other values trailing off of revenues. You are aware that current income at least partially defines the perceived value of commercial real estate, I assume. Please help me understand.

DontFollow
3 years ago

How would keeping spaces vacant raise the value of the building?

Capitol Hill needs art spaces.
3 years ago
Reply to  DontFollow

Corporate chains (banks, Starbucks, retail) are able to pay a higher cost per square than mom-and-pop independent businesses. There are not enough corporate chains to fill the spaces on Capitol Hill. If the National developers rent to independent businesses it will lower the cost per square foot for all their retail spaces in the neighborhood. If they flip the building with vacant spaces they can market the value based on the cost per square foot of a Chase Bank and also write off the loss based on the artificially inflated rate. That is my theory for why the the retail spaces remain vacant for years at the projects developed by the largest National developers, despite a strong demand for commercial space in the neighborhood. Spaces in buildings owned by local developers fill up much more quickly. Another theory is that their investors will only allow them to rent to national chains because it is perceived as a safer bet. They must be getting something out of it or they would drop their prices and rent to a small business. Their business model seems to be clearly based on rental units, not ground-level commercial.

CantAfford
3 years ago

Interesting theory. But I would imagine they would like the income stream of a renter, so maybe the issue is not being able to find a renter willing to sign a 7+yr lease for the space? They generally have loan covenants that require a certain average lifespan for their commercial leases.

So on the margins they might initially prefer a chase bank over a locally-owned clothing boutique, after sitting with a vacant space for a year I suspect they’d change their tune if they could find a high-quality renter.

It may also be that given the economy today, there are fewer “high quality” renters who can show the resources to be able to pay the rent for years even if the business is unsuccessful…