Split from this thread.

Well three things then if rebuilding the database doesn't work.
Reboot the Mac (to insure all related process are properly quit and restarted).

If that doesn't work, trash the database daemon preference files from ~/Library/Preferences (in your user account).
The name of the files start with com.microsoft

If that still doesn't work, you might have a very nasty corruption in the database and it might be time to think about restoring a backup… Do you make regular backups? Did you at least keep the "Backed-up" versions of your identity the last time you rebuilt? (located in ~/Documents/Microsoft User Data/Office 2011 Identities).
          Corentin

Hi I'm probably in the 'nasty corruption' place but do not have backed up identities because I deleted them (thats a different story). I do have the patience to rebuild the database from scratch, but do not know how to even do that, because Outlook just will not open. Any suggestions will be helpful. 

Hello I have this same Daemon/ crashing problem as of today and looked this thread up. 

The above is no use at all to me. I'm on a macbook air 10.9.5 

The reason is: 

I can't find any files named: com.microsoft 

There is no: /Documents/Microsoft User Data/Office 2011 Identities that i can find.. 

Is there any other help you can suggest? Sorry i can't get rid of this annoying blue highlight..