FOSTER CITY REAL ESTATE ECONOMIC MARKET ANALYSIS
January 27, 2026 Revised Kosmont Scope and Budget
SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide to Foster City (“City”) will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the City and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act as an elected official, appointed official, or as staff, nor as serving in a "designated" position.
Task 1. Kickoff Meeting / Project Orientation
Kosmont will coordinate a kickoff call with City staff to discuss the Client objectives, analytic approach and work schedule, as well as communication protocols. Subsequently, Kosmont will discuss the Scope of Services with the City Council at a retreat on Feb. 10.
In the week or two following the Council retreat, Kosmont will tour the City and neighboring area to review existing commercial and industrial land uses. Kosmont will have reviewed relevant planning documents such as the Annual Comprehensive Financial Report (“ACFR”), General Plan and Housing Element/ RHNA.
On the same trip as the tour, Kosmont would ideally like to get one-on-one meetings with Council members to understand priorities, opportunities and challenges to achieving their vision for the City. If some members are not available that day, virtual interviews can be conducted at a later date.
Task 2. Citywide Real Estate Economic Market Assessment Kosmont will conduct a comprehensive real estate economic market analysis to define current economic landscape, market trends and cycles including market leakage, supply and demand dynamics across commercial, office, retail, life science, hospitality and mixed-use sectors, as well as business indicators with the following subtasks:
Develop a baseline inventory of existing properties in these sectors. Evaluate key market indicators such as vacancy rates, lease rates, and tenant mix. Identify constraints within the region that may impact economic development. Identify unmet demand, oversupply, and emerging trends across sectors. Benchmark economic and financial performance of similar Bay Area cities.
Kosmont will utilize Placer.ai to analyze market leakage to identify opportunities to recapture spending within City with the following subtasks
Estimate trade area current annual dollar demand for retail goods and services based on existing resident demographics, visitor and employee spending Estimate how much of trade area demand is captured by retail facilities in the City (i.e. “leakage” or “surplus)
Translate retail demand into supportable square feet of retail space based on industry average sales volumes by retail category
Compare the supportable square footage with actual retail square footage to determine if more retail stores can be supported.
FOSTER CITY REAL ESTATE ECONOMIC MARKET ANALYSIS
January 27, 2026 Revised Kosmont Scope and Budget
Task 3. Demographic and Psychographic Analysis
Kosmont will utilize ESRI and other data sources to prepare a comprehensive population and psychographic analysis including: a study of demographic profile, (population, household incomes, race/ethnicity, housing preferences, educational attainment, employment by industry, commute patterns, resident/employee concentrations, and other metrics) to understand consumer needs and spending behavior. The analysis will focus on market demand and supply and other constraints for commercial and retail uses, such as but not limited to, grocery stores and restaurants.
Task 4. Stakeholder and Community Engagement
Kosmont will work with City staff to prepare an outreach plan that includes an in person community meeting, virtual and one in person business focus group meetings and online or social media surveys conducted with key stakeholders, including:
Property owners, brokers, and developers
Major employers and business groups
Community organizations and residents
Kosmont will prepare outreach and survey materials, including social media messaging / pamphlets and will document stakeholder input to incorporate into a presentation for City Council progress meetings.
Task 5. Identify Future Economic Needs
Kosmont will provide insights into local regional and national trends for multi-family, retail, office and industrial uses, and will forecast future economic conditions in various market sectors through 2035 based on market analysis, population growth, employment trends, demographics and other pertinent data specific to Foster City.
Task 6. Assess Opportunity Sites
The City has very little vacant land, but Kosmont will work with City to identify underutilized parcels (private sector and public sector), as appropriate. Foster City has five (5) main retail shopping centers, comprised of three (3) neighborhood commercial centers (Edgewater Place, Marlin Cove, and Beach Park Plaza) and two (2) regional-serving areas: The Marketplace along East Hillsdale Boulevard and the area along Metro Center Blvd. that includes Costco Wholesale. Kosmont will visit the existing commercial centers and other sites to understand visibility, access, tenant mix, pedestrian traffic patterns and vacancies to help guide potential strategies to strengthen existing businesses and attract new businesses.
Kosmont will research commercial and residential land values to inform assessment of redevelopment potential. Kosmont will recommend opportunities for redevelopment or repurposing of properties to meet unmet demand in other asset classes, where appropriate.
Kosmont will meet with Public Works to understand areas in need of infrastructure enhancement and investments to promote long term sustainable economic growth.
Task 7. City Council Progress Updates
Kosmont will provide in person updates at City Council meetings to present progress findings and gain Council feedback. Kickoff meeting followed by two or three progress updates - one following the market and demographic assessment and one or two updates following the community outreach and opportunity site analysis.
FOSTER CITY REAL ESTATE ECONOMIC MARKET ANALYSIS
January 27, 2026 Revised Kosmont Scope and Budget
Task 8. Action Plan and City Council Final Report
As a result of the Tasks 1-7, Kosmont will prepare a draft Report summarizing key data trends and analyses. Following receipt of comments from staff and Council, Kosmont will prepare a final Report, identifying action plan and next steps and will make an in-person presentation in PowerPoint format to Council for discussion and acceptance.
Projected Schedule and Budget
Kosmont estimates this assignment can be completed in approximately 8 months for not to exceed $125,000 accounting for numerous in person Council briefings.