Title
Discuss the Downtown Commercial Vacancy Study
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss the Downtown Commercial Vacancy Study
Report
Issue:
Whether to Discuss the Downtown Commercial Vacancy Study
Staff Contact:
Jennica Machado, Economic Development Director, Community Planning and Economic Development, 360.480.9167
Presenter(s):
Jennica Machado, Economic Development Director, Community Planning and Economic Development
Chris Zahas, Managing Principal, Leland Consulting Group
Jennifer Shuch, Senior Analyst, Leland Consulting Group
Background and Analysis:
Background
In recent years, increased vacancy in storefront and office spaces has been observed. The City’s Olympia Strong economic recovery plan included a proposed initiative aimed at helping activate vacant downtown spaces to help address downtown vacancy and vibrancy. That initiative did not gain traction, and efforts were terminated before implementation. As a result, the City identified a need to better understand the causes of vacancy prior to developing policy or programmatic responses.
Consultant Selection and Study Initiation
The City issued a Request for Proposal to conduct a downtown vacancy analysis and identify potential strategies. Following a competitive process, the City selected Leland Consulting Group and began the study in October 2025. Leland completed field surveys, stakeholder interviews, and data analysis to assess existing conditions and contributing factors.
Purpose
The objective of the study was to provide the City of Olympia with a clear and data-driven understanding of the drivers behind commercial vacancies in downtown Olympia and to identify actionable strategies to reduce vacancies over time. The findings are intended to inform future policy and program development related to downtown economic activity.
Climate Analysis:
The completion of the study does not result in direct greenhouse gas emissions or reductions. The study may indirectly support climate mitigation strategies by informing future policy, program, or investment decisions related to downtown development including potential support for reuse of existing buildings.
Equity Analysis:
Completion of the study does not directly implement programs or policies and is therefore not expected to result in immediate benefits or burdens to specific groups. However, it may inform future decisions that could affect downtown businesses, property owners, workers, and visitors, including historically marginalized and underrepresented communities in economic development efforts. Depending on future actions, there is potential to reduce disparities by improving access to economic opportunities and addressing barriers to business occupancy.
Neighborhood/Community Interests (if known):
No additional concerns were received outside of those identified through stakeholder engagement conducted as part of the study. Community input is summarized in the study.
Financial Impact:
The Vacancy Study was funded through general funds in the Economic Development budget with a max contract amount of $40,000.
Options:
1. Discuss the Downtown Commercial Vacancy Study
2. Do not discuss the Downtown Commercial Vacancy Study
3. Provide other direction to staff
Attachments:
Downtown Vacancy Study