President’s Outlook

News headlines about the economic recovery seem to change hourly: one minute the recovery is hitting its stride, the next it’s stalled. Each new bit of data brings with it a new spin on whether we’re fighting our way out of the Great Recession or just treading water. But based on what we’re seeing “on the ground” at the EDC, I have more and more reasons to believe that our recovery is progressing and heading in the right direction. Our local economy is quite different from that of other metro areas around the country and, in this most recent cycle, has come out of the downturn ahead of most other regions. The industries our market is built on—those competing in the technology-, knowledge- and international-based economy—are the industries that are leading this region and the country back to prosperity.

Hiring at some of the Northwest’s largest companies is expected to be strong in the coming months. It has been widely reported that the Boeing Company plans to hire 3,500-5,000 people this year alone. Google’s recent expansion in Bothell brings with it 600+ jobs, Facebook’s Seattle-based employee count is rapidly approaching 100, and software firm HCL is adding another 400+ jobs in Redmond. Amazon continues to hire at a good clip, having increased their companywide employee rolls by nearly 67% in 2011. HTC Corp., a Taiwanese smartphone company, plans to add 100+ employees to its Seattle presence. Even “traditional” manufacturing company Paccar expects to increase its payroll by 100 or more employees through next year, and Terex Aerial Work Platforms has added another 500 workers since December. Based on these and others, it’s clear the private sector has confidence it what’s happening in our region and is investing in the economy accordingly.

Another emerging sign of an economic uptick is the quickly changing corporate real estate market in Downtown Seattle and Downtown Bellevue. The period of large vacancies is anticipated to be over soon. In the last few months, large space acquisitions from Facebook to Amazon have been leading indicators of this trend. The Urban Land Institute ranked Seattle sixth in the nation in its annual “Emerging Trends in Real Estate” report for commercial and multifamily investment this year. Recent reports from local brokers put the vacancy rate in Seattle’s central business district around 15%.

Lest you think this merely the musings of a die-hard community booster, let me assure you my optimism—and that of the entire the EDC team—is based in the reality of what we are seeing on the ground every day. We’re building off the momentum of the region’s big wins in 2011—Boeing’s decision to locate the 737-MAX assembly here, Northeastern University’s Seattle campus, Novo Nordisk’s diabetes research center, and Amazon’s planned 3 million square foot expansion in South Lake Union—to make 2012 an even more successful year. And while I feel strongly that we are moving in the right direction, it’s important that all of us who are committed to the economic development of our region continue to be vigilant and proactive in our efforts.