Eastside businesses see tech-heavy growth

Eastside companies have stayed afloat during the last year and seem to be more optimistic about this year.

"They're planning for modest growth in sales and job growth," says Michael Verchot, director of the Business and Economic Development Program at the University of Washington, who tracks minority and women-owned retail and service companies.

More than three quarters of Eastside employers asked said they intend to hire new employees this year, according to a survey of 160 Eastside companies conducted last October by Hebert Research of Bellevue. Companies will add more than 5,100 new jobs on the Eastside this year, with technology and retail accounting for more than 4,000. Only 468 new jobs were created last year.

In the same survey, nearly half said they expect to purchase new computers this year, followed by 23 percent who will buy electronic equipment and 22 percent who plan new vehicle purchases.

And tech companies were the most optimistic, estimating 6 percent growth this year. Executives within the professional services expect to see more than 5 percent growth this year.

Commercial construction will continue to struggle and contract by less than 1 percent this year because of an oversupply of office space on the market. Office vacancy rates on the Eastside topped 17 percent last year.

"The first indicator that the economy is starting to recover will be when some of the excess space starts getting absorbed," says Jim Peoples, district president of the Seattle-Cascades region for Key Bank.

Retail will remain strong on the Eastside largely because of high household incomes, with 46.8 percent of retailers expecting the economy to improve this year.

— Kristina Shevory