Economic Profile

    

 

Economic Profile

Daly City
and
San Mateo County

 

Winter 2012

 

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 and 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 and 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. Population estimates as of 1/01/12 is 102,593.

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 2035. During this time, ABAG estimates that Daly City will be the largest growth city in the County.  Source: ABAG, Projections 2009.


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

 

2007

2008

2009

2010

2011*

Average % Change/Yr.

County Sales:

$13,326,306

$13,137,913

$11,327,022

$11,966,338

$12,800,000

-0.96%

Daly City Sales:

$907,125

$886,128

$774,360

$786,034

$822,076

-2.35%

Labor Force- Annual Average ReportingSource: CA EDD –Labor Market Information Division

 

2008

2009

2010

2011

2012

Average
Change/Yr.

County

Labor Force

384,400

374,200

372,900

377,400

382,700

-.04%

Daly City

Labor Force

54,900

48,200

47,600

NA

55,000

.08%

 

As of 10/1/2012 taxable sales data has not been made available by the State Board of Equalization for Calendar Year 2011, the most recent data only goes through Q2.  (*) Based on these quarters only, we have extrapolated the estimates above under 2011 column.  Historically, Daly City has been among the strongest in retail sales of all cities in the county.  Retail sales in Daly City were negatively affected by closures of Mervyn’s and Circuit City during 2008-09, as well as declining sales for many other merchants.  Nonetheless, from 2011 onward, Daly City saw improvement in the retail sector.  J.C. Penney’s opened in the former Mervyns’ space.  New outlets of Sherwin Williams Paints and AutoZone have opened on Mission Street.  A new CVS drug store has opened on Gellert Blvd.  Westlake Shopping Center and Serramonte Shopping Centers are nearly 100% leased.    

Daly City has a competitive labor force with 78% of the City’s population over the age of 18, only 12% of the population retired and a median age of 35. (2000 Census)……………………………………


Employment:

Mirroring national and local trends, Daly City’s unemployment rate has increased from 5.9% at the end of 2008 to nearly 9.0% as of January 2012. The County unemployment rate increased from 4.7% to 7.2% during the same period. 

 

 

2012 Employment Table

 

Major Private Sector Employers in San Mateo County and in Daly City

Company

Type of Business

Employees

San Mateo County (private sector) [change in 12 months]

United Airlines

Airline Service

9,600

Genentech

Biotechnology

8,250

Oracle

Database Technology

5,642

Daly City (private sector)

Seton Medical Center

Medical Services

1,659

Genesys Telecommunications Lab.

Telecommunications software

400

Target

Retail

298

Kaiser Permanente

Medical Services

285

 

Real Estate Market (winter 2012):

During 2012, the San Mateo County Office market improved (regarding of Class A vacancy rates and rents).  During Q2, Daly City’s Class A Office market saw a decrease in overall vacancy due to nearly 37,000 s.f. leased throughout the Class A and Class B inventory.  Daly City Rents have slightly increased following the rest of San Mateo County.  New Construction of Office space has been occurring in mid-San Mateo County.  There has been some interest expressed by developers along Daly City’s Pacific Plaza corridor.  During 2011-2012, Daly City’s retail market saw a modest decrease in space available as well.

Office Vacancy*:

Q2-2012

Q4-2011

2010

2009

2008

San Mateo County

12.5%

13.2%

17.9%

13.8%

16.4%

Daly City

14.9%

17.8%

7.7%

4.7%

5.1%

Retail Vacancy: *

Q3-2012

Q1-2012

2011

2010

2009

San Mateo County

3.0%

NA

4.6%

4.3%

4.2%

Daly City

1.66%

2.26%

6.02%

6.2%

11.4%

*A major commercial brokerage firm provided office and retail vacancy data.

New Projects:

  • Pacific Plaza:  The third phase office building site and the hotel site are available for development. This is a Daly City Successor Agency property.
  • 88 Hillside:  First phase of this mixed-use development has been completed and consists of 14,000 s.f. of retail space, 95 condos and ample parking.  Retail space available for lease.  The Phase II office site is available for development.  This is a Daly City Successor Agency Property.
  • Serramonte Center:  Construction will commence on a new anchor building, consisting of 80,000 s.f., for a new Dick’s Sporting Goods Store, during 2013
  • CVS Drug Store:  Construction will commence on a new CVS Drug Store, on Sullivan Avenue, during 2013.
  • 2665 Geneva Avenue:  New mixed-use development completed; includes condominiums and approximately 14,000 s.f. of new retail space.
  • 7555 Mission Street:  Habitat for Humanity has begun construction of a 36-unit ownership condominium project for working families.  Completion in 2011 is expected.

City Finance & Taxes:

Retail Sales Tax: State: 7.25%   County: 0.25%   County Transit: 1%   City: .75%   TOTAL: 9.25%

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