🏢 Two Olympia Office Buildings Hit the Market

Longtime State-Leased Properties Could See New Ownership Soon

Two major office buildings in Olympia’s Eastside neighborhood, both currently leased by the Washington State Department of Social and Health Services (DSHS), are officially on the market — and their future is raising some big questions.

📍 Location & Background

The buildings, known as Capitol View I and II, sit on Quince Street SE, just a short distance from downtown. Combined, they total over 126,000 square feet and have served as office space for state workers for decades — with one lease dating back to 1988.

They’re being listed together for $31 million, according to the commercial real estate firm Kidder Mathews, who’s managing the sale.

🏛️ Why This Matters

The buildings are deeply tied to state operations. DSHS has been the primary tenant across both sites, supporting a range of public service operations. That long-term occupancy has made these properties a stable investment — but now, with shifting trends in government office usage and the rise of remote work, their future use could change.

The listing does not currently clarify whether the state plans to renew, relocate, or reduce its footprint, but commercial insiders say this kind of sale could be the start of a broader reshuffling of office space in Olympia.

💡 What’s Next?

With a location close to Capitol Lake, downtown amenities, and main commuter routes, the buildings offer strong redevelopment potential. Depending on what the new owner decides, we could eventually see:

• 🏘️ Adaptive reuse (think: residential conversions or mixed-use projects)

• 🏢 Continued state leasing

• 🏬 A potential shift toward private commercial tenants

🔗 Stay in the Know

As this story develops, we’ll continue tracking how it could affect downtown Olympia, local real estate trends, and the potential impact on DSHS services.

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A major listing could signal a new chapter for Olympia’s office real estate.