The state rent control ban applies specifically to residential structures. Seattle City Councilmember Kshama Sawant saw the loophole there: Today she proposed rent control for commercial properties in Seattle. Her proposal is focused on small businesses, and it includes several other ideas “to strengthen independent and small businesses.” Here’s what she proposes:

1. Commercial rent stabilization. Rent control for commercial property “will disproportionately benefit small businesses that otherwise struggle to sustain their storefront operations and compete with big business outlets.” There’s no legislative language, so it’s not clear exactly what this would look like or who would qualify.
2. Portable retirement accounts for small business employees. This would be a city-sponsored pension plan.
3. Expansion of late night public transit. Buses, streetcars and light rail would offer 24 hour service. “The City Council can immediately fund a significant expansion in late night service for Metro by re-instating the business head tax (with exemptions for very small businesses) and increasing taxes on commercial parking lot operators. We also renew the call for Washington State to give cities like Seattle the ability to regulate the hours for its bars.”
4. Expansion of social service outreach. “[T]his means a significant increase in funding for human service providers as part of a comprehensive plan developed in close discussion with social justice advocates. . . . We support using progressive taxes to fund these programs, such as business taxes, developer impact fees, and a municipal income tax on the wealthy.”
5. Establishment of a municipal bank. The plan calls for the city to “establish a public, municipally-owned bank rather than continuing to contract with large private banks like Wells Fargo. A Seattle municipal bank would have a public benefit mandate to provide the same access to low-interest loans to local small businesses and homeowners that big businesses enjoy.”
6. Priority for local small businesses in commercial leasing. “Our city’s economic policy should give priority to local small businesses and artists rather than large chain stores, franchises, or big box retailers. Small businesses face challenges in gaining access to prime commercial leases, which are overwhelmingly given to large companies. The City should commission a study on how City policies (zoning, taxation, regulations, etc.) can be leveraged to advance these goals through legislation.”
7. Creation of a small business task force.

My first reaction to all of this is that the reasons that rent control is a bad idea are the same regardless of whether the property is residential or commercial. If rents are controlled, the quality and quantity of office space in the city would decline, as new investments would make less financial sense for developers and property owners.