Federal Way, WA
Commercial Real Estate Market Trends & Data

$310 Avg asking sale price
$25 Avg asking lease rate
23,277 SF Avg unit lease size
26,687 SF Avg building size for sale
7.22% Average cap rate

Federal Way's Demographic Profile

Federal Way has 34,408 households and a median income of $77,149, providing context for rent absorption and tenant demand across retail and multifamily assets. A 0% five-year population trend is a key signal for evaluating long-term demand in this market.

Key Demographic Metric Value
Population 97,214
# Households 34,408
Median age 39
Median household income $77,149
Avg household size 3.0
Renter-occupied housing units 16,471
5-year population change 0%

{{marketTabHeadings[activeMarketTab]}} Market Metrics Near Federal Way, WA

↻ Updated Monthly

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Nearby Office Markets Avg Cost/SF Typical Size Cap Max
Federal Way $237 37,607 SF 7.43%
Des Moines $436 14,849 SF 9.35%
Edgewood $360 4,838 SF 7.00%
Sumner $325 10,676 SF 7.00%
Nearby Retail Markets Avg Cost/SF Typical Size
Federal Way $340 14,982 SF
Milton $288 2,950 SF
Fife $205 13,098 SF
Des Moines $301 14,238 SF
Edgewood $634 8,855 SF
Nearby Multifamily Markets Avg Cost/SF Typical Size Cap Max
Federal Way $349 5,736 SF 6.32%
Auburn $289 7,667 SF 8.20%
Puyallup $267 6,000 SF 6.31%
Kent $262 10,460 SF 8.20%
University Place $354 10,203 SF 5.85%

Commercial Properties For Sale in Federal Way

The listings below reflect how current market pricing and building scale translate into active opportunities available today.
For Sale

Wendy's

Kent, WA 98032

  • 2,811 SF Retail Building
  • 5.52% Cap Rate
  • $2,400,000
For Sale

400 Boundary Blvd

Algona, WA 98001

  • 65,100 SF Industrial Building
  • $16,900,000
For Sale

Capitol Square

Federal Way, WA

  • 7.43% Cap Rate
  • $10,450,000
For Sale

House of Vacuums

Auburn, WA 98001

  • 0.20 AC Lot
  • 1 Industrial Lot
  • $550,000
For Sale

1111 Enchanted Pkwy S

Federal Way, WA 98003

  • 1.45 AC Lot
  • 1 Commercial Lot
  • $425,000
For Sale

Quality Inn & Suites Federal Way Seattle

Federal Way, WA 98003

  • 39,673 SF Hospitality
  • $6,600,000

Average Price For Sale

↻ Updated Monthly

Average Price For Lease

↻ Updated Monthly

Number of Listings

↻ Updated Monthly

Cap Rate

↻ Updated Monthly

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Nearby Commercial Markets

Comparing nearby markets helps investors see whether Federal Way pricing and building scale sit above, below, or in line with surrounding areas.

Commercial Markets Avg Cost/SF Average Size
Federal Way $310 26,687 SF
Milton $288 4,925 SF
Pacific $1,036 8,352 SF
Algona $329 34,054 SF
Fife $446 10,555 SF

Regional Demographic Comparison

This comparison places Federal Way alongside nearby cities to show how population size, household counts, and income levels differ across the region. Viewing these markets side by side helps investors understand whether local demand and income characteristics are concentrated in Federal Way or distributed across surrounding areas.

City Population # Households Age Median Household Income Avg Household Size Renter Occupied Housing Units Five Yr Pop Growth %
Milton 8,440 3,396 40 $92,336 2 1,469 3%
Algona 3,129 960 38 $89,217 3 224 -1%
Fife 10,605 3,890 35 $87,729 3 2,167 1%

Disclaimer: The figures on this page reflect LoopNet's active commercial listings in Federal Way, WA and update as inventory changes. Averages can shift between periods or vary across property types depending on the mix of listings available at a given time, so individual metrics may not reflect broader market trends. These figures are best used as directional benchmarks for early market evaluation. For comprehensive commercial real estate data and analytics, subscribe to CoStar.

FAQs About Commercial Investing in Federal Way

View All Commercial Real Estate For Sale in Federal Way
Is Federal Way a good market for a first-time commercial real estate investor?

Federal Way offers commercial properties across a wide range of sizes and price points. By reviewing the market data and benchmarks on this page, first-time investors can better understand what a typical commercial property looks like before committing capital and narrowing in on specific listings.

How can this market data help me decide whether to buy commercial property for my business in Federal Way?

The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in Federal Way. Typical building sizes and asking prices provide a starting point for evaluating space needs, budget fit, and long term occupancy costs before engaging lenders or brokers.

What should conservative investors focus on when evaluating commercial properties in Federal Way?

Conservative investors often prioritize manageable deal sizes, stable pricing ranges, and cap rate benchmarks shown for Federal Way. These metrics help assess whether current market conditions support steady income potential without relying on aggressive assumptions.

How does Federal Way compare to nearby commercial real estate markets?

Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to Federal Way. Reviewing these side by side helps experienced investors identify relative value, pricing premiums, or alternative markets that may better align with return targets.

How can this page support early-stage deal screening for Federal Way acquisitions?

This page provides high-level benchmarks for pricing, deal size, and observed cap rates in Federal Way, which are useful for initial market filtering. Institutional and data-driven investors often use these signals to prioritize listings that meet size, pricing, and return thresholds before deeper underwriting.

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