In this paper, experimental investigations on the inelastic seismic behavior of tunnel form buildings (i.e., box-type or panel systems) are presented. Two four-story scaled building specimens were tested under quasi-static cyclic lateral loading in longitudinal and transverse directions. The experimental results and supplemental finite element simulations collectively indicate that lightly reinforced structural walls of tunnel form buildings may exhibit brittle flexural failure under seismic action. The global tension/compression couple triggers this failure mechanism by creating pure axial tension in outermost shear-walls. This type of failure takes place due to rupturing of longitudinal reinforcement without crushing of concrete, therefore is of particular interest in emphasizing the mode of failure that is not routinely considered during seismic design of shear-wall dominant structural systems.