3600 S 320th St, Federal Way, WA 98001

SUPPLY & DEMAND DYNAMICS

Demand continues to be driven by healthcare, professional services, financial institutions, and light industrial/flex users seeking proximity to the I-5 corridor and the large residential base of South King County and North Pierce County. The Federal Way market sits at the geographic intersection of these two large suburban populations, providing a natural draw for businesses serving both.

RENT GROWTH & LEASING ACTIVITY

Rental rates across Federal Way's office and flex inventory have grown consistently in the 3–4% range annually. Class B and flex product — the most likely competitive set for a new development on this site — has seen the strongest absorption, as tenants priced out of newer Class A space in Bellevue and Seattle seek quality alternatives with superior parking ratios and freeway visibility. The East Campus submarket, where this site is located, commands among the highest rents in Federal Way due to its institutional quality neighbors and highway-proximate location.

EAST CAMPUS SUBMARKET

The immediate submarket surrounding this site, anchored by Weyerhaeuser Way S and S 320th St, hosts a concentration of corporate, medical, and government users. Neighboring occupants include DaVita's Pacific Northwest headquarters (160,000 SF purpose-built campus), federal and county government offices, and a growing cluster of healthcare-related users drawn to the area's accessibility and professional environment. This institutional quality tenant base supports above-market rents and long-term lease stability for new development in the corridor.

DEMOGRAPHICS & WORKFORCE

The Federal Way trade area supports a dense and growing residential population with strong workforce characteristics:

3-mile population: approximately 88,500 residents, projected to grow to 95,400 by 2027

5-mile population: approximately 184,600 residents

Median household income within 3 miles: approximately $100,000

Average household size: 3.2 persons — indicating a family-oriented, stable community

Workforce within 30 minutes: over 700,000 jobs across King and Pierce Counties

Major employers within the region include MultiCare, CHI Franciscan, Boeing, DaVita, Kaiser Permanente, JBLM, and Heritage Bank.

INFRASTRUCTURE & CONNECTIVITY

Federal Way is one of the most well-connected suburban markets in Washington State. The interchange of I-5 and SR-99 at S 320th St places this site within minutes of the regional freeway network. The Federal Way Link light rail extension — which has connects Federal Way to the broader Sound Transit network — further enhances the area's accessibility and long-term attractiveness to tenants and developers alike.