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This paper discusses an analytical study that quantifies the expected earthquake-induced losses in typical office steel frame buildings designed with perimeter special moment frames in highly seismic regions. It is shown that for seismic events associated with low probabilities of occurrence, losses due to demolition and collapse may be significantly overestimated when the expected loss computations are based on analytical models that ignore the composite beam effects and the interior gravity framing system of a steel frame building. For frequently occurring seismic events building losses are dominated by non-structural content repairs. In this case, the choice of the analytical model representation of the steel frame building becomes less important. Losses due to demolition and collapse in steel frame buildings with special moment frames designed with strong-column/weak-beam ratio larger than 2.0 are reduced by a factor of two compared with those in the same frames designed with a strong-column/weak-beam ratio larger than 1.0 as recommended in ANSI/AISC-341-10. The expected annual losses (EALs) of steel frame buildings with SMFs vary from 0.38% to 0.74% over the building life expectancy. The EALs are dominated by repairs of acceleration-sensitive non-structural content followed by repairs of drift-sensitive non-structural components. It is found that the effect of strong-column/weak-beam ratio on EALs is negligible. This is not the case when the present value of life-cycle costs is selected as a loss-metric. It is advisable to employ a combination of loss-metrics to assess the earthquake-induced losses in steel frame buildings with special moment frames depending on the seismic performance level of interest.