Agda Pkt 2025.12.22 Joint SA PFA

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Appraisal: APN 053-182-030, S.E. Corner of Maple & Lathrop Streets, Redwood City, Calif.Page 14 2025CNA112 costs and elevated uncertainty will likely impact leasing decisions in the coming quarters. The tariffs will directly impact some sectors more than others given the specifics of the policies appliances and sporting goods for example are heavily sourced from China but the entire sector will feel strained from a consumer lens. Consumer sentiment in early April slumped to the lowest level since 2021 as tariff concerns compounded anxiety about the employment and income picture. Heightened volatility in the stock market is also fueling concerns for older and wealthy consumers, which raises concerns about discretionary spending on luxury and big-ticket purchases. It is too early, however, to sound the recession alarm. Our view is that the tariffs will gradually be rolled back as trade negotiations progress, allowing consumer confidence and business sentiment to improve over the next few months. While we may see a pause in leasing activity as we await greater clarity, a wave of unexpected layoffs and store closures seems equally unlikely. Generally, this feels like a moment of pause rather than contraction. The report notes that asking retail rents in the broader San Francisco market increased marginally from $42.95/SF/Year in Q1-2024 to $43.12/SF/Year in Q1- 2025. Over the same period, rents in the broader San Jose market increased from $39.66/SF/Yr to $40.27/SF/Yr. Meanwhile, both of these markets had new retail under construction. According to statistics compiled by CoStar Group, The Redwood City retail submarket has a vacancy rate of 1.5% as of the second quarter of 2025. Over the past year, the submarket s vacancy rate has changed by -1.4%, a result of 2,300 SF of net delivered space and 58,000 SF of net absorption. Redwood City s vacancy rate of 1.5% compares to the submarket s five-year average of 3.0% and the 10-year average of 2.5%. The Redwood City retail submarket has roughly 120,000 SF of space listed as available, for an availability rate of 3.0%. As of the second quarter of 2025, there is 97,000 SF of retail space under construction in Redwood City. In comparison, the submarket has averaged 22,000 SF of under construction inventory over the past 10 years. Market rents in Redwood City are $37.00/SF. Rents have changed by -0.4% year over year in Redwood City, compared to a change of -0.4% across the wider San Francisco market. Annual rent growth of -0.4% in Redwood City compares to the submarket s five-year average of 0.6% and its 10-year average of 2.0%. 8.K. - Page 61 of 105 311