Location:   Known as the “Gateway to the Peninsula”, Daly City is central to major growth areas of San Francisco and San Mateo counties and features excellent transportation infrastructure linking San Francisco’s financial district (eight miles north), the San Francisco International Airport (nine miles southeast & 15 minutes via BART) and Silicon Valley further south. Daly City is also directly linked to the East and South Bay Area.  The Oakland International Airport is located 20 miles to the east.   Because of its central location, excellent transportation links and growing young & productive labor force, Daly City has become a regional hub for retail, healthcare and business development.

Population:   Daly City  has experienced a significant increase in population over the last four decades and, according to the California Dept. of Finance, has realized an increase of 1.2% growth in population over the past six years compared to 2.4% for the county. Population estimates as of 1/01/08 are 739,469 for San Mateo County and 106,361 for Daly City. Daly City is the largest city in San Mateo County and, according to the Association of Bay Area Governments (ABAG), is expected to retain this position through at least 2030.  During this time, ABAG estimates that Daly City will be in the upper 50% of the largest growth cities in the county.  Source: ABAG, Projections 2007 (next update in 2009).(more)

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Economic Growth & Trends:  

Five-year history of taxable sales and labor force for Daly City and San Mateo County.

Taxable Sales (in thousands of dollars) – Source: State Board of Equalization
	2003		2004	2005	2006	(most current) 2007	Average % Change/Yr.
County Sales:	$11,358,439		$11,808,074	$12,451,350	$12,900,391	$13,326,306	3.9%
Daly City Sales:	$733,1544		$751,322	$785,226	$859,944	$907,125	5.2%
Labor Force- Annual Average Reporting – Source: CA EDD –Labor Market Information Division
		2004	2005	2006	2007	2008	Avg % Change 2007/08
County Labor Force		364,500	363,800	364,500	379,446	384,400	2.3%
Daly City Labor Force		51,700	51,600	51,580	54,100	54,900	1.5%

 

Employment Mirroring national and local trends, Daly City’s unemployment rate has modestly increased from 4.8% at the end of 2007 to 5.9% at the end of 2008. The county unemployment rate increased from 3.8% to 4.7% during the same period. Source: CA EDD

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Major Employers in San Mateo County and in Daly City

Company	Type of Business	Employees
San Mateo Country (private sector)
United Airlines  Genentech Oracle	Airline Service Biotechnology Database Computer Software	10,328 7,845 5,777
Daly City (private sector)
Seton Medical Center U.S. Postal Service (quasi-private) Genesys Telecommunications Lab. Target	Medical Services International Mail Facility Telecommunications Software Retail	1,659 602 366 336

 

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Real Estate Market (spring 2009):

Through spring 2008, the San Mateo County commercial real estate market had improved significantly from the "dot.com" bust of 2001, and Daly City's office market has remained strong with a year-end vacancy rate of 6.4%, compared to nearly 12.6% countywide. However, with the economic downturn and volatility in the international capital markets, growth has tempered. Throughout San Mateo County, demand for Class A office space weakened. Daly City's full-service, Class A asking rents decreased modestly from $2.79 to $2.41 in the last year, compared to a nearly equal decrease countywide. Nonetheless, Daly City's Class A vacancy rate declined. DeVry University lease at Pacific Plaza played a major role in the vacancy rate improvement. During 2007-08, Daly City's retail market saw a modest increase in space available. The 2.8% vacancy rate cited below does not reflect more recent 2009 closures of Mervyn's and Circuit City. Owners of Mervyn's and Circuit City report interest by potential replacement tenants.

Office Vacancy*	Ending 2008	Ending 2007	Ending 2006	Ending 2005	Ending 2004
North San Mateo County	16.4%	12.6%	14.7%	18.0%	21.9%
Daly City	5.1%	6.4%	5.6%	7.3%	13.3%
Retail Vacancy*
San Mateo County	2.5%	1.4%	3.2%	3.0%-5.0%	3.4%-6.0%
Daly City	2.8%	2.4%	1.8%	1.82%	5.4%±

*A major commercial brokerage firm provided office and retail vacancy data for 2007; pre-2007 data from other sources and estimates.

New Projects

·      Pacific Plaza -  The third phase office building site and the hotel site is available for development.

·      Landmark Plaza -  The first phase of this mixed-use development is nearing completion in 2007 and consists of 14,000 s.f. of retail space, 95 condos and ample parking. Phase II office site is available for development.

·      Westlake Shopping Center -  Multi-phase development of 500,000± s.f. continued with completion and opening of new building for T.J. Maxx and a new parking structure was completed and opened.

·     Serramonte Center - Upgrade of shopping center continues with completion of new food court with seasonal theme and fireplace centerpiece. Major expansion of Forever 21.

·      City Toyota - Has a new state-of-the-art dealership on San Pedro Road completed in 2007.  

·      Monarch Plaza -New mixed-use development commenced construction at Sullivan Avenue near 280 off-ramp, to include Walgreens and a take-out national coffee retailer, as well as 300 senior apartments.  

·     2665 Geneva Avenue - New mixed-use development nears completion; includes condominiums and approximately 14,000 s.f. of new retail space.  

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City Finance & Taxes:

Retail Sales Tax:  9.25%  (State 7.0%, County 0.25%, County Transit 1.0%, City 1.0%)  

Bond Rating:       Moody's Investors Services Inc.: Aaa
                           Standard & Poor's Corporation: AAA
                           (Daly City has no significant outstanding public assessment bonds)