Seattle Helps Business Owners With Affordable Commercial Spaces
What a time to be a Seattle business owner! Let’s give thanks to Ordinance 126982 which allows residents to keep the lights on and the communal fridge stocked.
Here’s the rundown of how this law works and all the ways Seattle is striving to support small businesses in maintaining affordable commercial property.
First Things First: What Is Ordinance 126982?
Enacted on January 29, 2024, Ordinance 126982 regulates commercial leasing in Seattle. Under this law, commercial landlords are prohibited from collecting more than the first and last month’s base rent as a security deposit, a letter of credit, or any combination of the two. This ordinance applies to new commercial leases in Seattle that are used for profit-generating retail or other commercial purposes. However, several industries are exempt, including:
Residential or lodging properties
Office spaces
Research and development facilities
Medical clinics or dispensaries
Farming or cultivation sites
Wow, we agree, that’s an expansive list! While this law might seem designed to protect small businesses, its exemptions make it clear that many industries won’t get to use the benefits from its protections. Despite that, there are penalties for landlords who don’t comply with the law.
Penalties for Violating Ordinance 126982
Penalties for landlords include:
First violation: A $500 fine
Additional violations: Fines increase to $1,000 per instance
Tenants who suffer financial harm due to a landlord's noncompliance can file civil suits for damages. For landlords, these penalties emphasize the importance of adhering to the ordinance's guidelines!
A Lifeline for Small Businesses in Seattle
Now that Ordinance 126982 has launched to regulate commercial leasing for all Seattle business owners, the City of Seattle isn’t stopping there! The city is doubling down on its commitment to address the rising cost of commercial rent that disproportionately impacts people of color, immigrants, women, and LGBTQIA+ entrepreneurs through the Business Community Ownership (BCO) Fund. By addressing these inequities head-on, Seattle is taking a bold stand to protect the diverse businesses that are vital to the city's identity and economy.
The BCO Fund invests in commercial real estate across Seattle’s neighborhoods by creating affordable brick-and-mortar opportunities for business owners most vulnerable to displacement. This isn’t just a policy; it’s a strategic effort to preserve the cultural and economic contributions of the city by ensuring its diverse entrepreneurs have a fair shot at thriving in a competitive market.
Two Key benefits of the BCO Fund:
Providing fixed and affordable leases to small business owners who might otherwise be priced out of commercial storefront spaces.
Offering long-term stability and control over property which helps increase business income and value.
Know Your Rights, Stay Informed, and Empowered!
Understanding your rights as a small business owner is essential in navigating Seattle’s commercial real estate landscape. Ordinance 126982 and initiatives like the BCO Fund reflect the city's efforts to create a more equitable and sustainable environment for small businesses, especially Black-owned, Latino-owned, and Native-owned businesses.
If you're a small business owner in Seattle struggling with rising rent or displacement, the BCO Fund might be a resource worth exploring. Determine your eligibility today!
At King’s Dream, we’re committed to helping small businesses in our community succeed by providing current industry updates, tips, and actionable insights. Want to stay informed? Subscribe to our newsletter today and let us help you make the most of these opportunities!
About King's Dream Business Consulting: Founded in 2019, King's Dream Business Consulting is a small business consulting and management firm established initially in response to Seattle's gentrification and displacement of its minority business communities. To Date, King's Dream has served over 200 small businesses nationwide. King's Dream Business Consulting is a leading provider of business advisory services, offering strategic planning, marketing strategies, financial management, operational efficiency, and human resources consulting. Committed to the success of small businesses, King's Dream Business Consulting provides tailored guidance and support to drive sustainable growth.
Tyra Douyon is an Atlanta-based journalist, content writer, and editor. She developed her unique writing style and media correspondence skills in print and digital publishing, specializing in education, real estate, advertising, marketing, and arts/entertainment news. She’s a graduate of Kennesaw State University, where she earned her Bachelor's in English Education and Master's in Professional Writing. Along with freelance writing, she is a published poet and staff editor for an independent press/literary arts magazine.
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