Precast panel shear walls are investigated for conditions simulating progressive collapse. The latter are simulated by assuming ineffective panels at various levels within the structure. The analysis is performed by an efficient finite element substructuring procedure for both static and seismic loadings, and by a simple rigid-cantilever approximation for static loading only. The principal interest concerns the magnitude and distribution of design forces in vertical and transverse ties which, in the finite element analysis, are modelled by discrete connectors along horizontal and vertical joints. For static loading the results evaluate the accuracy of the simple cantilever design procedure, whereas for seismic loading the magnitude and distribution of connector forces resulting from local panel failure are examined. In particular, it is shown that failure of an exterior panel leads to unexpectedly large concentrations of shear force in the vertical joint, something that is not adequately predicted by the simplified cantilever analysis.