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Appraisal: APN 053-182-030, S.E. Corner of Maple & Lathrop Streets, Redwood City, Calif.Page 10 <br />2025CNA112 <br />III. MARKET ANALYSIS <br />overall economic activity rose slightly since mid-January. Six Districts reported no <br />change, four reported modest or moderate growth, and two noted slight contractions. <br />Consumer spending was lower on balance, with reports of solid demand for essential <br />goods mixed with increased price sensitivity for discretionary items, particularly among <br />lower-income shoppers. Unusual weather conditions in some regions over recent weeks <br />weakened demand for leisure and hospitality services. Vehicle sales were modestly lower <br />on balance. Manufacturing activity exhibited slight to modest increases across a majority <br />of Districts. Contacts in manufacturing, ranging from petrochemical products to office <br />equipment, expressed concerns over the potential impact of looming trade policy <br />changes. Banking activity was slightly higher on balance among Districts that reported <br />on it. Residential real estate markets were mixed, and reports pointed to ongoing <br />inventory constraints. Construction activity declined modestly for both residential and <br />nonresidential units. Some contacts in the sector also expressed nervousness around the <br />impact of potential tariffs on the price of lumber and other materials. Agricultural <br />conditions deteriorated some among reporting Districts. Overall expectations for <br />economic activity over the coming months were slightly optimistic. <br />As for real estate conditions in <br />the residential real estate sector softened slightly on net. Demand for single-family homes <br />remained solid in some regions, such as Southern California, but reportedly cooled in <br />others such as Arizona and Oregon. Inventories remained limited. Demand rose for <br />multifamily rental units, particularly at the lower end of the market, and vacancies were <br />easy to fill. Rents rose somewhat despite recently completed units increasing local supply <br />in some areas. Contacts in the Los Angeles area attributed the increased demand for <br />rental units and higher asking rents to the recent wildfires. Contacts observed fewer new <br />single- and multifamily construction projects, citing higher construction costs and <br />economic uncertainty. <br />Commercial real estate conditions were largely similar to those in the prior reporting <br />period. Office space demand increased slightly but remained subdued overall. Rents for <br />retail space rose at a pace in line with inflation. Commercial projects continued to be <br />held back, with contacts citing higher construction and financing costs. However, work <br />on public and infrastructure projects continued. Contacts reported that businesses paid <br />attention to the possibility of further increases in construction materials costs and labor <br />availability issues. <br />8.K. - Page 57 of 105 <br />307