Syracuse-based firearms and typewriter manufacturer, Lyman Cornelius Smith, purchased a plot of land at the northeast corner of Yesler Way and Second Avenue in 1899. While visiting Seattle in 1909, he first planned to build a 14-story building, but was persuaded by his son, Burns Lyman Smith, to build a skyscraper to rival those in New York City. B.L. Smith oversaw the project as his father's health declined. After Lyman Smith's died in 1910, B.L. Smith designed the building with the help of the Gaggin & Gaggin architectural firm.

The final blueprints for the building had it standing at 467 feet tall with 42 stories made up of a steel frame and a concrete structure. The L.C. Smith Building, as it was first known, began construction in 1911. The builders completed construction in 1913, before and the tower opened to the public on July 3rd, 1914. It offered 540 offices as well as an observation floor built in the style of a Chinese temple, known as the Chinese Room or Temple. The room's furnishings were a gift from the last Empress of China to L.C. Smith.

The building itself is shaped in a "mounted tower" form. Popular at the time, this style combines a broad base topped with a narrow tower with a pyramid cap. The exterior of much of the building is made from white terracotta, giving it a distinctive look. It is a landmark of the Seattle skyline to this day.

In 1929, B.L. Smith changed the building's name to the Smith Tower. The Smith Tower has changed ownership many times. As of 2025, it is an office building with a bar and historical exhibit on its observation floor.