Doing Business in … Federal Way

It’s easy to view Federal Way as a place passed by on the highway between the larger cities of Tacoma and Seattle. But for the more than 100,000 people who call the Puget Sound city home and the people who work there each day, the city is far more than a dot on a map. Federal Way carries a touch of Seattle and Tacoma’s urban buzz while holding onto a sense of calm shaped by its coastal access and green spaces.

Weekends here might mean browsing shops and catching a movie at The Commons, followed by a quiet walk along the wooded trails and shoreline of Dash Point State Park. Cultural gems like the Pacific Bonsai Museum and the Rhododendron Species Botanical Garden pull visitors off I-5 and into landscapes that feel entirely disconnected from the rush of nearby commuting traffic. Drawing from the best of the surrounding region, Federal Way has become far more than a waypoint to something greater and created a name for itself as a place worth staying.

City Snapshot

Incorporated

Feb. 28, 1990

(Federal Way EDC)

Population

101,023

(Federal Way EDC, 2020 data)

Land Area

22.3 square miles

(Federal Way EDC)

Median household income

$86,909

(U.S. Census Bureau, 2024 dollars)

Median home sales price

$601,744

(Zillow, MAR. 31, 2026)

Summer Events

・ Red, White, & Blues Festival

Celebrate the Fourth of July with a full day of live music, food vendors, games, and family activities at Celebration Park. Main stage performances begin at 4 p.m., followed by a fireworks show at 10:15 p.m.

・ Concerts in the Park

Federal Way’s Summer Sounds Concert Series brings free live music to Steel Lake Park every Wednesday evening in July. The all-ages lineup spans island rhythms, Motown and R&B, and ‘80s rock tributes.

・ Movie at the Park

From 9-11 p.m. on July 25, Town Square Park transforms into an outdoor movie theater with a screening of “Superman.” Free popcorn adds to the draw, making it a fun summer night out for families and friends.

・ Community Festival

From noon to 4 p.m. on Aug. 8, Town Square Park will host a multicultural celebration reflecting the diversity of Federal Way. The free, family-friendly festival features live entertainment, kids’ activities, food vendors, and booths from local businesses, nonprofits, and service organizations.

Economy & Business Environment

Top 10 industries (by percentage of workforce)

① Health Care and Social Assistance — 24%

② Retail Trade — 16%

③ Accommodation and Food Services — 15%

④ Other Services — 8%

⑤ Educational Services — 6%

⑥ Construction — 6%

⑦ Administrative and Support, and Waste Management and Remediation Services — 4%

⑧ Professional, Scientific, and Technical Services — 4%

⑨ Wholesale Trade — 4%

⑩ Arts, Entertainment, and Recreation — 3%

(Federal Way EDC)

Top 10 employers

① Federal Way Public Schools

② Virginia Mason Franciscan St. Francis Hospital

③ Western Washington Conference of Seventh-Day Adventists

④ Northwest Pump & Equipment Co.

⑤ City of Federal Way

⑥ Amazon Services LLC

⑦ World Vision Inc.

⑧ Costco Wholesale

⑨ Walmart

⑩ Virginia Mason Medical Center

(Federal Way EDC)

Recent economic developments of note

・ 2025 light rail expansion

The light rail 1 Line extension reached Federal Way in late 2025, adding nearly 8 miles of service and three new stations: Kent Des Moines, Star Lake, and Federal Way Downtown. The project strengthened the city’s regional connections, placing access to highways, the airport, and the port all within about 30 minutes. (Federal Way EDC)

・ Transit-oriented development planned near Downtown Station

Sound Transit and Federal Way are advancing plans for a mixed-use, walkable development on 6 acres next to the Downtown Station. A proposed MSC and SRI project would bring about 230 affordable family-size homes along with a café, commercial kitchen, and child care to grow the station area. (Federal Way EDC)

・ Downtown and Town Center redevelopment

The city is reshaping its 414-acre City Center into distinct, walkable districts anchored by civic spaces like the Performing Arts & Event Center and Town Square Park. A partnership with One Trent will redevelop the Town Center 3 site into a hub of housing, retail, office space, and will add a public plaza steps from light rail. (Federal Way EDC)

・ Health care growth and community investment

Federal Way continues to expand as a medical hub with major providers and new specialty services, including a birthing center at St. Francis Hospital and expanded pediatric and oncology care. The HealthPoint clinic recently received a county grant to help clinical staff purchase essentials such as food, diapers, and medical equipment for patients facing unmet social needs. (Federal Way EDC)