Economic Profile

    CONTENT

 

Economic Profile

Daly City
and
San Mateo County

 

Fall 2010

  
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 1/01/10 are 754,285 for San Mateo County. Daly City's population is 101,123 (2010 U.S. Census).

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 (2008 data most recent as of 9/2010)

 

2004

2005

2006

2007

2008

Average % Change/Yr.

County Sales:

$11,808,074

$12,451,350

$12,900,391

$13,326,306

$13,137,913

1.0%

Daly City Sales:

$751,322

$785,226

$859,944

$907,125

$886,128

1.0%

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

 

2006

2007

2008

2009

7/2010

2009/2010
Change/Yr.

County

Labor Force

364,200

379,446

384,400

374,200

372,900

-1.0%

Daly City

Labor Force

51,580

54,100

54,900

48,200

47,600

-2.0%

 

As of 9/1/2010 taxable sales data has not been made available by the State Board of Equalization for Calendar Year 2009. Through 2007, however, Daly City was among the strongest in retail sales of all cities in the county with average annual growth 5.2% compared to a 3.9% for the county.  Retail sales in Daly City have been negatively affected by closures of Mervyn’s and Circuit City during 2008-09, as well as declining sales for many other merchants.  Nonetheless, during 2009-10, Daly City saw improvement in the retail sector.  New restaurants (Tomo Sushi, Beach Burrito and Komei Buffet) opened at Pacific Plaza.  The “Main Street” at Westlake Shopping Center is completely leased. Ross Stores has opened the formerly vacant Linens ‘n Things space and several smaller stores have opened in remaining vacant space. At Serramonte Center, new retailer, A’Gaci, opened a 20,000 s.f. store.  International Retailer H&M will open by 2011.

Daly City has a competitive labor force with 78% of the City’s population over the age of eighteen, 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 modestly increased from 5.9% at the end of 2008 to nearly 11.6% as of January 2010. The County unemployment rate increased from 4.7% to 9.7%during the same period.
Source: CA EDD
We note that the USPS closed the International Mail Facility, with the loss of 600 jobs, in early 2010.
 
 
 

  
 

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 		9,600
8,250
5,642
Daly City (private sector)


Seton Medical Center
Genesys Telecommunications Lab.
Target
Kaiser Permanente

 Medical Services
Telecommunications Software
Retail 
Medical Services 		1,659
400
298
285
 
 
Real Estate Market (Fall 2010)
During 2009, within the San Mateo County office market (consisting of Class A stabilizing rents), Daly City's Class A Office market has had the strongest performance in the County--Pacific Plaza and 2171 Junipero Serra Class A office buildings over 95% occupied. Nonetheless, Daly city's full-service, Class A asking rents decreased modestly from $2.41 to $2.16 in the last year, compared to a nearly equal decrease countywide. During 2008-09, Daly City's retail market saw a modest increase in space available, reflecting closures of Mervyn's and Circuit City. The retail vacancy rate decreased as the Circuit City and other vacancies were filled.
Office Vacancy*
December
2009		 Ending
2008		 Ending
2007		 Ending
2006		 Ending
2005
North San Mateo County 13.8% 16.4% 12.6% 14.7% 18.0%
Daly City 4.7% 5.1% 6.4% 5.6% 7.3%

Retail Vacancy*
July 2010   July 2009  2008 2007  2006 
San Mateo County 4.3% 4.2% 1.9% 3.2% 3.0%-5.0%
Daly City 6.2% 11.4% 2.4% 1.8% 1.82%
*A major commercial brokerage firm provided office and retail vacancy data for 2007 to present; 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 has been completed and consists of 14,000 s.f. of retail space, 95 condos and ample parking. Retail space available for lease. Phase II office site is available for development.

Serramonte Center -  Upgrade of shopping center continues with completion of new food court with seasonal theme and fireplace centerpiece. Former Longs Drugs space is available for lease.

Monarch Plaza -  New mixed-use development commenced construction at Sullivan Avenue near 280 off-ramp, to include 300 senior apartments, as well as retail uses.  

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


7555 Mission Street -  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.
City Finances and Taxes
Retail Sales Tax:  9.25% 

(State 7.25%, County 0.25%, County Transit 1.0%, City 0.75%)  

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

 

Prepared by: Department of Economic & Community Development, Daly City, CA