Leland Supports Downtown Olympia with Strategies to Address Commercial Vacancy

On May 5, 2026, Leland Principal Chris Zahas and Senior Analyst Jennifer Shuch presented the findings of a recently completed downtown vacancy study to the Olympia City Council. Like many communities across the country, Olympia continues to navigate the lasting effects of the COVID-19 pandemic, the rise of e-commerce, and a sustained shift to remote and hybrid work. In Olympia, the shift to remote work among state workers has contributed to reduced foot traffic for downtown businesses.

Leland’s initial site visit revealed that there is a lot to love about downtown Olympia – historic buildings, unique businesses, and placemaking elements like artwork and bistro lighting. In order to better understand opportunities and challenges, we spoke with downtown stakeholders including business owners, property owners, real estate professionals, and representatives of agencies that support and market downtown. These interviews revealed common themes that guided and informed our data analysis. This enabled us to separate perceptions from reality and help City staff focus on addressing the root causes of vacancy.

Because data on vacancy can often be inaccurate or out of date, we conducted on-the-ground research, identifying vacant spaces and categorizing them by type. We concluded that downtown Olympia is not an outlier when compared to peer cities, and that many of the vacancy challenges the city is facing are related to the cost of upgrading and renovating large historic retail spaces.

Our recommendations for addressing downtown vacancy and vitality focus on what the City can control: reducing barriers to investment, improving transparency, strengthening relationships with stakeholders, and activating underutilized spaces. Ultimately, the work reinforces a core principle: successful downtown revitalization requires a coordinated, holistic approach that aligns policy, investment, and partnerships to support long-term vitality.