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Home My WebLink About02-25-2026 - 46002-Appraisal of Right of Way Vacation for RRFA Station 16 Appraisal of Vacation of Right of Way Located East of 158th Ave SE and South of SE 128th St Real Property: Vacant Land Date of Appraisal February 15, 2026 – Market Value Prepared for Mr. Ryan Simonds Renton Regional Fire Authority Appraised by Eric McKee, MAI Amy Bradley Josette Pratt File 46002 February 25, 2026 Transmittal Mr. Ryan Simonds Deputy Chief Renton Regional Fire Authority 18002 108th Ave SE Renton, WA 98055 Property Name Location McKee File Right of Way Vacation for RRFA Station 16 ROW Located East of 158th Ave SE and South of SE 128th St Renton, WA 98059 46002 Dear Mr. Simonds: At your request, we have prepared an appraisal of the market value of the real property referenced above. The subject property is a portion of the public right of way extending east from 158th Ave SE, approximately 292 feet south of SE 128th St, in Renton, Washington. This is an appraisal of the fee simple estate, representing the value of the property rights to an owner of the land and improvements, without any leases or other property interest encumbrances. This Appraisal Report communicates our findings. This appraisal is based on investigation and analysis of the subject property and the market, including comparison with other similar properties in the market. It has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). It has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. It has also been prepared in conformity with the scope of work and other assignment conditions as communicated by the client or appraiser in the course of the assignment. This appraisal is subject to the attached Certification, Assumptions & Limiting Conditions, and specific extraordinary assumptions or hypothetical conditions documented herein. Value Conclusion As a result of our investigation and analysis, our conclusions are: Description Date of Value Value Market Value February 15, 2026 $88,000 Appraisal of Right of Way Vacation for RRFA Station 16 Page | 3 Renton, WA Certification McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Certification I certify that, to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. • I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding agreement to perform this assignment. • I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • Eric McKee, MAI and Josette Pratt have not made a personal inspection of the property that is the subject of this report. Amy Bradley has made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report, Eric McKee, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. • As of the date of this report, Josette Pratt has completed the Standards and Ethics Education Requirements for Affiliate Members of the Appraisal Institute. ____________________________ ____________ ____________________________ Eric McKee, MAI Josette Pratt Amy Bradley WA Certified General Appraiser (1102525) WA Certified General Appraiser (25005557) WA Registered Appraiser Trainee (21003470) Appraisal of Right of Way Vacation for RRFA Station 16 Page | 4 Renton, WA Table of Contents, Maps and Exhibits McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Table of Contents, Maps and Exhibits Transmittal ..................................................................................................... 2 Certification ................................................................................................... 3 Table of Contents, Maps and Exhibits ............................................................... 4 Summary of Important Conclusions ................................................................. 5 Aerial Photograph ........................................................................................... 7 Subject Photographs ....................................................................................... 8 Appraisal Description ...................................................................................... 9 Neighborhood Description ............................................................................... 13 Neighborhood Map ............................................................................... 13 Market Analysis .............................................................................................. 16 Property Description ....................................................................................... 19 Site Map ............................................................................................... 19 King County iMap .................................................................................. 19 Highest and Best Use ...................................................................................... 22 Property Valuation .......................................................................................... 23 Land Sale Comparison Photographs ...................................................... 23 Land Sale Comparison Map ................................................................... 27 Land Sale Comparison Summary ........................................................... 28 Land Sale Adjustment Summary ............................................................ 32 Appendix ........................................................................................................ 34 Ordinary Assumptions and Limiting Conditions Economic Conditions and Real Estate Markets Appraisers' Experience & Qualifications Appraisal of Right of Way Vacation for RRFA Station 16 Page | 5 Renton, WA Summary of Important Conclusions McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Summary of Important Conclusions Name of Subject Property Vacation of Right of Way Located East of 158th Ave SE and South of SE 128th St Address Portions of ROW between 158th Ave SE and 160th Ave SE Renton, WA 98057 Property Description Residential Land Detailed Description Land area: 3,648 sf • Vacant Land • Rectangular • 16’ x 228’ • Zoned R-4 - Renton Valuation Premise This appraisal estimates the “Fair Market Value” or the “amount in cash that a well-informed buyer, willing but not obligated to buy the property, would pay, and that a well-informed seller, willing but not obligated to sell it, would accept, taking into consideration all uses to which the property is adapted or may be reasonably adaptable.” Property Interest Appraised Fee Simple Estate Valuation Methodology The appraisal uses “across the fence” (ATF) methodology, assuming zoning consistent with the adjacent property zoning, and using the unit value of similar land as the valuation basis, without regard to size or shape. This is the methodology historically applied in determining compensation for vacated rights of way, and is balanced for this purpose, neither diminishing the value for the specific characteristics (such as limited size and accessibility), nor escalating the value for the potential enhancement to the petitioner’s surrounding property. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 6 Renton, WA Summary of Important Conclusions McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Valuation Approaches The market value is estimated by using the single relevant approach to value: • the “Sale Comparison Approach,” using an analysis of the sale prices of other land properties with similar location and zoning. The “Income Approach” and “Cost Approach” are not relevant for a street property and are not applied. Value Conclusions Description Date of Value Value Market Value February 15, 2026 $88,000 Comments The subject of this appraisal is an alley right of way bisecting an existing parcel. The subject is flat and without improvements. In the last 3 months Renton Regional Fire Authority has started sitework on the surrounding parcel and will ultimately construct Station 16. This new structure will replace the aging Station 16 a few blocks away and include both a new fire station and maintenance shop to support the organization. The 2022 and 2023 purchases of the parcels included in this new development serve as benchmarks in our estimation of the value of the subject, supported by timelier, similarly zoned land sales that provide the primary basis of the valuation. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 7 Renton, WA Aerial Photograph McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Aerial Photograph Appraisal of Right of Way Vacation for RRFA Station 16 Page | 8 Renton, WA Subject Photographs McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Subject Photographs Looking north along 158th Ave SE from the subject. Subject eastern border abuts the Lord of Life Lutheran Church. The area between the subject and the church is forested. Alley access from 158th Ave SE looking east. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 9 Renton, WA Appraisal Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Appraisal Description Identity of Property • The legal description of the property is as follows: • The property does not have a tax ID number. It directly bisects King County Assessor Parcel No. 3664500008. Title Report: Easements and Encumbrances We have not been provided with a title report for the subject property, so we have no verified specific title understanding. We assume the subject is clear of any financial encumbrances such as mortgages and liens. Non-financial encumbrances may include easements, encroachments, restrictive covenants or leases. Other than as identified in this report, we assume that there are no easements or other title issues which would impact the value or other important conclusions of this appraisal. Purpose of Appraisal The purpose of this appraisal is to estimate the Market Value of the subject property. The following definition of Market Value is found under Advisory Opinion 22 (AO-22) in The Uniform Standards of Professional Appraisal Practice, 2024 Edition, Page 60: Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) Buyer and seller are typically motivated; (2) Both parties are well informed or well advised, and acting in what they consider their own best interests; (3) A reasonable time is allowed for exposure in the open market; Appraisal of Right of Way Vacation for RRFA Station 16 Page | 10 Renton, WA Appraisal Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) (4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition is consistent with the Code of Federal Regulations, Title 12, Part 34, Subpart C, 34.42(g), August 24, 1990, and updated January 1, 2000. This definition is also consistent with the FIRREA 2010 Interagency Appraisal and Evaluation Guidelines. Ownership of Property The current owner of the property is the City of Renton. The owner has continuously owned and operated the property for many years. Client, Intended Users, and Intended Use The client is Renton Regional Fire Authority. The intended user is Renton Regional Fire Authority. The intended use is solely for the proposed fee take acquisition of the right of way areas. No other use or user is authorized. Unavailability of Information We have not been provided with various expert information which may be relevant to the valuation such as surveys or environmental reports specific to the subject area. Fee Simple Property Rights Appraised The property rights appraised are a fee simple (absolute) interest in the property, subject only to the existing appurtenant easements of record and to the four powers of government in the United States (taxation, eminent domain, police power and escheat). This appraisal is of the real property only within the legal boundaries defined by the legal description of the larger parcel. Any equipment or other personal property is not appraised. Five-Year Sales History The subject property has not transferred ownership within the five years prior to the effective date of this appraisal. We are not aware of any agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal. Extraordinary Assumptions and Hypothetical Conditions This appraisal is subject to the General Assumptions and Limiting Conditions found at the beginning of this report. In addition, the following extraordinary assumptions and hypothetical conditions may have affected the assignment results. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 11 Renton, WA Appraisal Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) A survey or full legal description for this area has not been provided. We have used the King County Assessor map in estimating the subject area. We are not surveyors, and recognize that to obtain an exact square footage of the land area to be vacated, a survey would be required. We therefore assume as an extraordinary assumption that any difference in land area between the estimated area within this report and the acquired area does not differ to a degree where the total value would be significantly impacted. Considering the potential unavailability of information, we assume as an extraordinary assumption that there are no unapparent conditions which affect the value or utility of the property. As an extraordinary assumption or hypothetical condition, we appraise the property as fee simple land and as if unencumbered by agreements, restrictions or easements. Scope of Work The scope of work associated with the appraisal assignment is consistent with the intention to produce appropriate and credible results, considering the requirements and intended use for the client and intended users. The scope of work included: Research of public records, articles, zoning, neighborhood description and trends, and information provided by the client such as title and environmental, and street vacation plans. Sales were researched using CoStar, Commercial MLS, King County Assessor Records, City of Renton public records, and public news articles available to research and analyze the market. The Sale Comparison Approach was used, as there was adequate, relevant sale data in this market for similar sites. As vacant land, the Cost and Income Approaches are not relevant and were not used. Recent transactions of residential and land sales in Renton and adjacent areas with the same or similar zoning as considered for the vacation area were investigated. The comparisons were adjusted for a variety of factors, and a final value was reconciled for the subject property. Ownership of Property The current owner of the property is the City of Renton. The owner has continuously owned and operated the property for many years. History and Current Status The subject property was initially dedicated as an alley. However, a review of aerial imaging revealed that the alley was not utilized in that manner by the neighboring properties. It was utilized and maintained by the neighboring parcels as part of their own properties. Currently, the property bisects a parcel being developed by the local fire authority as a neighborhood fire station. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 12 Renton, WA Appraisal Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) 3-Year Sales and Other Transfer History The property has not sold or transferred within the three years prior to the effective date of the appraisal. Current Agreements of Sale, Options and Listings We are not aware of any agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal. Exposure Time and Marketing Time The value conclusions in this report are as of the effective dates of this appraisal and assume that a “reasonable exposure time” has preceded those effective dates; the value conclusions are consistent with expected transaction on the effective date of the appraisal after prior exposure. The “marketing time” is that period which would be expected to be incurred to market the property in the current environment as of the date of the appraisal report, with the marketing to occur subsequently. Thus, the value conclusion is not necessarily the subsequent value that would be anticipated for transaction of the property after future marketing. Reasonable exposure time is measured in the market, as evidenced by current transactions. The subject property is a narrow strip of land zoned R4 Residential by the city of Renton. Land of this nature typically is either purchased by a neighbor or purchased by an investor in some limited instances. Sales of this type are rarely listed on the open market, but when marketed they sell quickly. Considering these factors, we estimate that a reasonable exposure time and marketing time for the subject property is six months. Date of Appraisal Report February 25, 2026 Effective Date of Value February 15, 2026 Market Value Appraisal of Right of Way Vacation for RRFA Station 16 Page | 13 Renton, WA Neighborhood Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Neighborhood Description Neighborhood Map Appraisal of Right of Way Vacation for RRFA Station 16 Page | 14 Renton, WA Neighborhood Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Neighborhood Description Regional Overview Washington state’s total population grew by 1.0% on April 1, 2025, according to annual estimates prepared by the Office of Financial Management. The Seattle Metropolitan area is located in the middle of a 5-county area often referred to as the Central Puget Sound Region. Seattle is the central focus of economic activity. Seattle and the Region have experienced significant population and business growth over the last several decades. Trends in the Seattle area over the last decade in particular included significant population, economic and employment growth. The metro area had a population of 4.145 million in 2024, with real gross domestic product (GDP) of $566.7 billion in 2023, the 10th largest regional economy in the US with a 10-year CAGR of 4.9%, ranking #1 among large US metro areas in short term and top-tier growth over multi-year benchmarks. Led by growth in technology, as a world center of software development (including Amazon and Microsoft as headquartered companies employing about 115,000 total), both population and economic growth have been diverse. As of May 2024, the mean hourly wage in the Seattle‑Tacoma‑Bellevue MSA was $43.16, well above the national average of $32.66 and in the top 3-4 metro areas for mean wages, although the cost of living was 9th highest out of 269 urban areas in the 3rd quarter of 2023 according to a study by the Council for Community and Economic Research. The area is well known for its overall quality of life, with a reputation for both culture and recreation, and is one of the most attractive areas for both relocation and tourism, especially for younger people. Recent impacts from the work-from-home trend are apparent in the dense but livable urban office core of downtown Seattle, diminishing the presence of office workers even as the CBD matures and retains new residents with a high quality environment. While the short term is clouded by uncertainty in the economy related to tariffs and interest rates the general consensus view on the region’s economy is one of optimism, with most reports projecting upward trends in the longer term. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 King Pierce Snohomish Seattle MSA Population Change 2020 2021 2022 2023 2024 Appraisal of Right of Way Vacation for RRFA Station 16 Page | 15 Renton, WA Neighborhood Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Neighborhood Description The subject is located in the East Renton Highlands area of unincorporated King County. The neighborhood is primarily residential, consisting of single-family homes of varying ages and sizes. Properties along 160th Avenue SE range broadly in construction years (1912–2021), with average lot sizes of approximately 0.234 acres and average building sizes near 2,029 square feet. Access to the area is provided by NE Sunset Boulevard (NE 4th Street) to the northwest and SE Petrovitsky Road to the south, which connect residents to downtown Renton, Interstate 405, and regional employment centers, including the Boeing Renton facility. Nearby commercial services are concentrated along major arterials and at The Landing, a retail district serving the broader Highlands and Sunset areas. Transit service is limited, consistent with the neighborhood’s minimal-transit classification. The neighborhood reflects typical suburban development patterns, with established residential subdivisions and consistent maintenance levels. The housing stock shows a mix of ages and styles but demonstrates stable long-term occupancy and use. School assignments within unincorporated portions of Renton vary by district boundaries; schools in the nearby Highlands and Sunset areas fall under the Renton School District. Conclusion In summary, the area surrounding the subject is a stable, predominantly single-family residential neighborhood with typical suburban characteristics, established access routes, and proximity to regional employment and commercial services. Overall, the location of the subject provides good access to the surrounding region and is functional for various residential uses. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 16 Renton, WA Market Analysis McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Market Analysis Subject Residential Market Analysis We used the Northwest MLS (NWMLS) to research data about land value trends in the subject area. The subject is located in the Renton/Highlands market in NWMLS. First we investigated land sales. The number of land transactions in this area is limited and the sales range from $25,000 to $1,200,000 since January 2022. Median Sale Price of Vacant Land in the Renton Highlands Market - NWMLS Transactions of residential homes in the market area range from $705,500 to $1,100,000 since January 2022 with the lowest sale price occurring in December 2023. Since this low sale, prices have fluctuated between $820,000 and $1,000,000 aside from a spike to $1,100,000 in March of 2025. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 17 Renton, WA Market Analysis McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Median Sale Price of Residential Homes in the Renton Highlands Market - NWMLS While the subject is not a residential home, the residential market works in tandem with construction costs to set the value of residential land. Home sales in the Puget Sound are typically seasonal, with the highest value transactions occurring in summer and the lowest in winter. Prices spiked in March 2025. Subsequent reporting periods since this spike have included highs and immediate counterbalancing troughs with a generally downward trend. It is helpful to note the monthly supply of inventory in the subject area. This metric is created by dividing the number of active listings by the average number of monthly sales, assuming no new listings are added. This rise in months of supply closed can be indicative of a cooling market and consistent with the relatively flat pricing trendline in the larger Renton Highland area where prices are only recently beginning to see a decline. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 18 Renton, WA Market Analysis McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Conclusion As seen in the previous charts, while home prices have stagnated and listings remain on market a longer period, land prices continue to increase in the subject area. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 19 Renton, WA Property Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Property Description Site Map King County iMap Appraisal of Right of Way Vacation for RRFA Station 16 Page | 20 Renton, WA Property Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Property Description Land Area 3,648 sf Shape and Dimensions Rectangular 16’ x 228’ Access and Frontage Landlocked. The nearest access is available from 158th Ave SE, a neighborhood street. Topography Gently sloping from west to east. Hydrology and Flood Hazard The subject property is outside of any flood plain, according to Q3 FEMA Mapping Technology Panel 53033C0982G, with a limited flood hazard. Environmental Contamination We have not been provided with an environmental site assessment for the subject property, and assume no negative environmental conditions. Environmentally Critical Areas (ECAs) No ECAs indicated. Utilities All public utilities are available including electricity, gas, water, sewer, and telephone. Zoning The subject is zoned R‑4, a Residential Low-Density designation allowing a maximum density of four dwelling units per net acre plus 2 accessory dwelling units per legal lot. This zoning is intended to regulate low‑density residential development and ensure consistency with Renton’s adopted Comprehensive Plan policies. R‑4 is part of Renton’s Residential Low and Medium Density zoning group, which establishes standards for density, lot dimensions, and site development. These standards define minimum lot size, setbacks, and other requirements to maintain orderly residential growth. Permitted uses in R‑4 primarily include detached single‑family dwellings, along with related residential uses such as manufactured homes, accessory dwelling units, adult family homes, and certain small‑scale residential care uses, as outlined in Renton’s zoning use table. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 21 Renton, WA Property Description McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) R‑4 also plays a role in future annexation areas where Renton applies net‑density calculations, subtracting roads, wetlands, and other constrained areas before determining allowable units. This contrasts with King County’s gross‑density method and ensures development aligns with Renton’s lower‑density standards. Seismic Zone and Building Compliance The Puget Sound region is prone to periodic earthquakes from several sources including shallow, deep and subduction zone earthquakes. This creates a seismic risk for land and building structures. The risk for any particular property is complex, related to the nature of the seismic event including type and direction of ground movement, and to the detailed geotechnical nature of the property and the specific construction of any site or building improvements. Specific hazards include landslide, ground subsidence, ground displacement, liquefaction, tsunami, flooding, fire, and building damage or collapse. The 2014 U.S. Geological Survey (USGS) National Seismic Hazard Maps are identified as the "best available science" in earthquake hazards estimation for the United States. These maps identify a 2 percent probability of exceedance of peak horizontal ground acceleration (PGA) in the Puget Sound region in the range of about 0.5g - 0.71g over 50 years. The specific study of the hazard for any particular property is beyond the scope of this appraisal. We have not been provided with a structural assessment for the subject, which is beyond our expertise. Property Taxes The subject does not represent an established parcel. Therefore, there are no property taxes to reference. Functionality The subject is not a buildable parcel in its current configuration. It does not meet the shape and frontage requirements of the indicated zoning. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 22 Renton, WA Highest and Best Use McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Highest and Best Use "Highest & Best Use" is defined by the Appraisal Institute as: The reasonably probable and legal use of vacant land or improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value. The concept of Highest and Best Use is based on the most profitable and valuable use that is both probable and appropriately supported. The Highest and Best Use must meet four criteria: it must be legally permissible, physically possible, financially feasible, and maximally productive. Highest and Best Use As If Vacant and Unimproved Legally Permissible The subject is zoned R-4 by the city of Renton. This zoning allows for 4 dwelling units per acre with each legal lot accommodating a maximum of two accessory dwelling units. Please see the zoning discussion in the Site Description section for further requirements. Physically Possible Although the subject parcel could not be individually developed due to its small size and narrow configuration, it is mostly level and is physically well-suited as part of a residential development site. All utilities are available. Financially Feasible & Maximally Productive There is evidence of new single-family home construction in the subject area, indicating the financial feasibility of such development. Residential construction is currently occurring in the region and in the subject’s neighborhood. The subject site is vacant development land with a highest and best use of residential development to the maximum density. Highest and Best Use as Currently Improved The subject site is not currently improved. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 23 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Property Valuation Land Sale 1 Surrounding Subject Subject is starred. Land Sale Comparison Photographs Appraisal of Right of Way Vacation for RRFA Station 16 Page | 24 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Land Sale 2 Neighboring Parcel Subject is starred. Land Sale 3 R&B Construction Appraisal of Right of Way Vacation for RRFA Station 16 Page | 25 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Land Sale 4 ANK Construction Appraisal of Right of Way Vacation for RRFA Station 16 Page | 26 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Land Sale 5 Tri-Pointe Homes Appraisal of Right of Way Vacation for RRFA Station 16 Page | 27 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Land Sale Comparison Map *The Subject bisects Sale 1. # Name & Location Zoning Jurisdiction Land Area Topography Shape Orientation Sale Date Sale Price Land $/sf Comments 1 Surrounding Parcels R-4 130,500 Mostly Flat October 2022 $2,400,000 $18.39 Renton Rectangular Inset Renton 3664500007 - 0009 2 Neighboring Parcel R-4 16,588 Mostly Flat August 2023 $525,000 $31.65 15817 SE 128th St Renton Rectangular Renton Inset & Fronting 3664500330 3 R&B Construction R-4 29,981 Slight Slope October 2025 $685,000 $22.85 6570 SE 2nd Pl Renton Rectangular Renton Inset 3664500279 4 ANK Construction R-4 10,723 Mostly Flat June 2024 $240,000 $22.38 5000 155th Ave SE King County 5,898 Rectangular Renton White Fence Ranch Inset 9353300870 5 Tri-Pointe Homes R-4 206,882 Mostly Flat December 2024 $5,300,000 $25.62 14520 SE Renton Issaquah RD King County Rectangular Renton Sunset East Inset 0323059027, 9256, 9276-9280 Subject Station 16 Street Vacation R-4 3,648 Date of Value E/o 158th Ave SE, S/o SE 128th St Renton February 15 2026 Renton, WA 0.08 Publicly Listed. Septic on site but sewer is available for redevelopment. Buy will bring sewer up from the street and subdivide into 3 residential lots. Multiple inspections and offers. Property sold for $10,000 over asking. At the time of sale, Parcel 0008 was improved with 1,000sf single family residence and 900sf outbuilding and parcel 0009 was improved with a single wide mobile home with deck. Parcel 0007 was not improved. Parcels were purchased under a single contract by Renton Regional Fire for the purposes of building a fire station. Site is bisected by alley. At the time of sale, this parcel was improved with an 1,800 sf single family residence and 400sf garage. Structures were built in 1932. Property was purchased by Renton Regional Fire for the purposes of building a fire station. McKee Appraisal, Inc. Station 16 Street Vacation Sale Comparison Summary Rectangular, treed Lot in existing King County neighborhood. Limited street improvements required for development. Sale not publicly marketed. East Highlands neighborhood has been developed inconsistently, with a mix of new large homes and smaller homes from the 1960s. Purchased for the Solera development project, to develop 22 dwellings. Fronts SR 900, a regional arterial. Sloping from SW to NE, with some Cascade view lots. Septic is on site at the time of sale, but within the coverage area of City of Renton sewer services. KC Water District. 15821 SE 128th St & 12924-12930 158th Ave SE Appraisal of Right of Way Vacation for RRFA Station 16 Page | 29 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 23, 2025) Property Valuation The Sale Comparison Approach uses sales of comparable improved properties to derive units of comparison that are then used to indicate value for the subject. Please refer to the map and to the Sale Comparison Summary exhibit which outlines the details of the sale comparisons. Data Search Our search for comparable data primarily focused on recent sales of residential land located in the Renton Highlands neighborhood or similar nearby neighborhoods. To identify recent local sales, we used NWMLS, CoStar, CBA, the King County Assessor, our in-house database, and conversations with active brokers in the subject market. The results of our search indicated a number of larger land sales proposed for subdivision or single lot development. From this mass of data, we focused on the sales nearby the subject and of similar or same zoning assignment to the subject. We then analyzed these sales, making adjustments based on location/access/exposure and site improvements/plans. Adjustments are limited as the majority of the sales are proximate to the subject and the nature of this “Across the Fence” valuation precludes the use of size/shape adjustments. Emphasis was also placed on the most recent transactions in selecting the primary sale comparisons. The comparisons have been analyzed on the basis of price per square foot, as is typical for this type of transaction and is appropriate given the “Across the Fence” methodology. Land Sale Comparisons Land Sale 1 Land Sale 1 consists of three contiguous parcels located at 15821 SE 128th Street and 12924–12930 158th Avenue SE within the Renton jurisdiction. The combined site totals approximately 130,500 square feet of R‑4–zoned land and is mostly flat with a rectangular, inset configuration bisected by an alley. At the time of sale in October 2022, two of the parcels were modestly improved: one contained a 1,000‑square‑foot single‑family residence with a 900‑square‑foot outbuilding, and another contained a single‑wide manufactured home with a deck. The third parcel was unimproved. The surrounding neighborhood reflects typical suburban residential development. The property sold in October 2022 for $2,400,000, equating to approximately $18.39 per square foot. The properties were purchased together under a single contract by Renton Regional Fire Authority for construction of a new fire station, which contributed to the premium for the assembled acreage despite older improvements. The transaction represents pricing for large, mostly flat assemblages in Renton that offer redevelopment flexibility for civic or institutional uses. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 30 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 23, 2025) Land Sale 2 Land Sale 2 is located at 15817 SE 128th Street in Renton and consists of approximately 16,588 square feet of R‑4–zoned land. The parcel is mostly flat and rectangular, with inset and street‑fronting orientation. At the time of the August 2023 sale, the site was developed with an older 1,800‑square‑foot single‑family residence and a 400‑square‑foot garage, both constructed in 1932. The surrounding area is characterized by established suburban residential uses. The property sold in August 2023 for $525,000, or roughly $31.65 per square foot. The buyer, Renton Regional Fire Authority, acquired the parcel for expansion of its planned fire station site, reflecting an institutional‑use premium for strategically important infill lots. Land Sale 3 Land Sale 3 is located at 6570 SE 2nd Place in Renton and consists of approximately 29,981 square feet of R‑4–zoned land. The parcel has a slight slope and is rectangular with an inset orientation within an established residential area. At the time of sale, the property included an existing septic system; however, municipal sewer service was available in the street, supporting redevelopment potential. The surrounding neighborhood reflects typical suburban patterns, with single‑family homes on similarly sized lots. The property sold in October 2025 for $685,000, or approximately $22.85 per square foot. The site was publicly listed, received multiple inspections and offers, and ultimately sold for $10,000 above the asking price, indicating competitive market interest. The buyer reportedly planned to bring sewer service to the site and subdivide the property into three residential lots. The transaction reflects market pricing for moderately sloped infill parcels with subdivision potential and existing on‑site utilities, where buyer competition contributes to price support. Land Sale 4 Land Sale 4 is located at 5000 155th Avenue SE in the East Highlands / White Fence Ranch area of unincorporated King County. The site contains approximately 10,723 square feet of R-4–zoned land and is rectangular in shape with an inset configuration. The parcel is mostly flat and treed, with limited street improvements required for development. The surrounding neighborhood has developed inconsistently, with a mix of newer, larger homes and smaller residences dating from the 1960s. The property sold in June 2024 for $240,000, which calculates to approximately $22 per square foot of land area. The sale was not publicly marketed. The transaction reflects pricing for a larger, lower-density residential lot with fewer infrastructure requirements in a semi- rural portion of the East Highlands area. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 31 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 23, 2025) Land Sale 5 Land Sale 5 is located at 14520 SE Renton‑Issaquah Road in King County. The land area totals approximately 206,882 square feet and is zoned R‑4. The site is mostly flat with a rectangular, inset orientation and fronts SR 900, a regional arterial serving the Renton‑Issaquah corridor. The property slopes from southwest to northeast, offering the potential for Cascade‑view lots. At the time of the December 2024 sale, the site contained septic systems but was within the service area of the City of Renton’s sewer utility, and water service was provided by King County Water District. The property sold for $5,300,000, equating to about $25.62 per square foot. The buyer, Tri‑Pointe Homes, acquired the site for development of the Solera project, which proposed 22 residential units. The sale demonstrates pricing for large R‑4 assemblages with subdivision potential in a desirable East Renton location, particularly when supported by arterial frontage, utility service availability, and opportunities for view‑oriented residential development. Adjustments Adjustments have been made to reflect differences in Property Rights, Market Conditions, Location and Site Improvements/Plans. We also considered a zoning adjustment, but the comparisons are all similar enough to the subject in that regard that no adjustments were deemed necessary. Property Rights The subject right of way bisects Sale 1 as seen on the Sale 1 image on page 24. Historical aerial images as far back as 1990 suggest that while the property was technically encumbered by the right of way easement, the easement area was utilized and maintained by the owner of the Sale 1. Nevertheless, this acquisition reflects a site that is not contiguous, requiring that the buyer expend additional cost and time to complete the contiguous development site. A slight upward adjustment is appropriate. Market Conditions As described in the market section of the report, the sales market for single family homes has stalled. However, land sales for development continue to move forward. The greater Renton Highlands area enjoys excellent access, and the mix of Renton and King County jurisdictions has resulted in a number of larger lots that can still be purchased and subdivided. We reviewed our in-house documentation, the Case Shiller home price index, and paired market transactions in determining that an upward adjustment is applicable to the older sales. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 32 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 23, 2025) Land Sale Adjustment Summary Sale Comparison Number 1 2 3 4 5 Property Name Subject Surrounding Parcels Neighboring Parcel R&B Construction ANK Construction Tri-Pointe Homes Transaction Price $2,400,000 $525,000 $685,000 $240,000 $5,300,000 Property Rights 5%0%0%0%0% Financing Terms 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures after Sale $0 $0 $0 $0 $0 Subtotal $2,520,000 $525,000 $685,000 $240,000 $5,300,000 Land Size - Square Foot 3,648 130,500 16,588 29,981 10,723 206,882 Adjusted Unit Price $19 $32 $23 $22 $26 Date of Sale 2/15/2026 10/24/2022 8/12/2023 10/27/2025 6/26/2024 12/4/2024 Market Conditions Adjustment (Appraisal Date)10%5%0%5%5% Subtotal $21.24 $33.23 $22.85 $23.50 $26.90 Location/Access/Exposure 0%0%0%0%(5%) Site Improvements/Plans 0%(25%)0%0%0% Net Adjustment 0%-25%0%0%-5% Indicated Value for Subject $21.24 $24.92 $22.85 $23.50 $25.55 Appraisal of Right of Way Vacation for RRFA Station 16 Page | 33 Renton, WA Property Valuation McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Location The subject is located within an existing neighborhood along a neighborhood street. We reviewed each comparable and adjusted for location based on nearby services and differential pricing between newer homes in the subject area and newer homes near each comparable. Site Improvements The subject, Sale 1 and Sales 3 through 5 include no significant site improvements that added value to the property. Sale 2 transacted with a 1,400 sf single family home and 400 square foot garage built in 1938. Investigation of the site, including historical images, suggest that the home was similar to other homes that have transacted in the neighborhood for purposes other than redevelopment. The improvement appears to offer contributory value and a downward adjustment is appropriate. Land Value Conclusions The sale comparisons indicate an unadjusted range of from $19/sf to $32/sf. Sales 1 and 2 are directly adjacent to the subject, but were not openly marketed. Sales 3, 4 and 5 are all relatively timely and required minimal adjustments. Based on these indications and the adjustments discussed, we have concluded that the subject value would be near the mid- range of the comparable adjusted values at $24/sf or $88,000 rounded. Appraisal of Right of Way Vacation for RRFA Station 16 Page | 34 Renton, WA McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Appendix Ordinary Assumptions and Limiting Conditions Economic Conditions and Real Estate Markets Appraisers' Experience & Qualifications McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) ORDINARY ASSUMPTIONS AND LIMITING CONDITIONS McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) Ordinary Assumptions and Limiting Conditions The attached report may only be used or reviewed in its entirety. No individual pages, portions, analyses or conclusions may be separated from the complete report or verbally disseminated without transmittal of the entire report. This appraisal is intended for use only by the client and intended users specifically identified in the report, and may not be transferred to any other party without the specific written permission of McKee Appraisal, Inc. Certain aspects of the report (including analysis methodology, spreadsheets, textual formatting and content) are considered the exclusive intellectual property of McKee Appraisal, Inc. All rights are reserved. The following Ordinary Assumptions and Limiting Conditions are supplemented by additional extraordinary assumptions and limiting conditions identified in the report. It is assumed that there have been no substantial changes to the property between the date of our inspection or most recent investigation and the date of the report. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, structures, or environment (including asbestos, formaldehyde, radon, soil contamination, structural conditions, legal compliance including zoning and Americans With Disabilities Act compliance, title or legal conditions, mineral or other valuable conditions or rights, or unknown soils, hydrological, or environmental factors) that render it more or less valuable. We have no expertise in any of these areas, and we specifically counsel the client to perform additional investigation by qualified experts. No responsibility is assumed for such conditions or for arranging studies to discover them. The liability of McKee Appraisal, Inc. and its employees is limited to the client only. The value conclusions are the result of integration of the entire appraisal process, including multiple methodologies, approaches and analyses. Any specific errors or omissions may or may not change the value conclusions. The appraiser is not required to provide further appraisal services, give further consultation, testimony or attendance in court by reason of this appraisal unless specific arrangements have been previously made. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. The forecasts, projections and estimates contained in this report are based on current market conditions, anticipated short-term supply and demand factors, and a stable economy. These forecasts are, therefore, subject to changes with future conditions which are unknown at the date of appraisal. We assume that future conditions are as anticipated by the markets and as discussed in the report, and any future projections or values are predicated on this assumption. The analyses and conclusions are valid only as of the date of transmittal of the report. The appraiser has made no survey of the property and assumes no responsibility in connection with such matters. Any sketch or identified survey of the property included in this report is only for the purpose of assisting the reader to visualize the property. No responsibility is assumed for the legal description or for matters including legal or title considerations. The property is appraised free and clear of any or all liens or encumbrances, unless otherwise stated. Title to the property is assumed to be good and marketable. Responsible ownership and competent management are assumed. The allocation of total value to land, buildings, or any fractional part or interest as shown in this report, is invalidated if used separately or in conjunction with any other appraisal. RESTRICTION UPON DISCLOSURE & USE: This appraisal is intended for use only by the client and intended users specifically identified in the report, and may not be transmitted or communicated to any other party without the specific written permission of McKee Appraisal, Inc. Disclosure of the contents of this appraisal report is governed by the By-Laws & Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which (s)he is connected, or any reference to the Appraisal Institute or to the MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without the prior written consent and approval of the signatories. No part of this report or any of the conclusions may be included in any offering statement, memorandum, prospectus or registration without the prior written consent of the appraiser. McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) ECONOMIC CONDITIONS AND REAL ESTATE MARKETS Page | 1 Economic Conditions and Real Estate Markets US and Seattle Economic Conditions and Real Estate Markets National Economic Conditions As of July 2025, the U.S. economy has experienced some slowdown, with ongoing concerns regarding the somewhat unknown effects of higher tariffs. A Reuters poll of 105 economists in July forecasts full‑year GDP growth at 1.5% for 2025 (down from ~2.8% in 2024), with a milder 1.6% anticipated in 2026. concerns about a potential recession. The Conference Board now project real GDP growth at about 1.6% for 2025, citing tariff effects and slowing consumer spending, and predicts a shift to later tariff impacts for the end of 2025 and early 2026. They also expect some delay on anticipated Fed rate cuts. Interestingly fears about a recession this year have diminished with prospects now in the 30%-35% range, although there is renewed talk of stagflation. In terms of inflation and interest rates, year over year inflation in June 2025 was 2.7%, up from 2.4% in May. Hopes for further rate cuts are clouded by inflation concerns. The expectation is for lower near term interest or yield rates as the Fed will lower rates in 2025-2026, but generally higher long term rates reflecting some future concern, although the return to a normal (non-inverted) yield curve suggests a fairly normal overall situation and future prospect for now. The most prevalent economic attitude today is uncertainty. Near term economic attitudes are fairly pessimistic, and it is difficult to see a longer term horizon as the many issues clouding the immediate future predominate as we navigate the many disruptive issues at hand. Markets are quite uncertain. In the longer term the fundamentals of the US economy remain relatively string. Despite the apparent alienation of trade partners and a decline in stature and perception of economic leadership, the US economy has proven to be particularly resilient in the last couple of economic shocks, including after the Great Recession, and post-Covid. The national demographic continues a trend of predictable aging, but the US benefits from a younger and more diverse population relative to most economic peers. Advances in technology and a large capital base may stimulate productivity and job creation. National Real Estate Market - Value Trends and Sectors For a broad understanding of the current conditions in the commercial real estate markets, we have examined several nationally published price indices. These indices shed light on recent and historical value trends in commercial real estate markets, including differentiation by property type sector Page | 2 Economic Conditions and Real Estate Markets US and Seattle First, the Commercial Property Price Index (CPPI) produced by Real Capital Analytics (RCA), reflecting results through October 2025: This equally weighted index reflects repeat sales of the same property in which the initial transaction price was $2.5 million or more. After almost a year of slow decline the overall one year average upturned slightly and has remained unchanged in the last month reporting a 0% change in All Types in the last month. All asset classes save apartments and CBD office reporting increases over 2%. While apartments and CBD office continue to decline, the decline has slowed significantly. Overall, in the 6 major metropolitan areas are down slightly over 1-year and 5-year periods, while down about 11% over 3 years. However, the Seattle area is has remained relatively steady at 3% growth in the past 1 and 5 year periods. Without the significant downturn in values for CBD office, other sectors look more neutral to slightly positive. Please note that these fairly recent statistics do not incorporate recent commentary and rate reductions annoucenced by the Federal Reserve Bank. Page | 3 Economic Conditions and Real Estate Markets US and Seattle Another national index, the Green Street CPPI, has REIT data (institutional properties), is value weighted, and is appraisal-based. The Price Index is “a time series of unleveraged U.S. commercial property values that captures the prices at which commercial real estate transactions are currently being negotiated and contracted”. The overall index has increased 2.9% over the past 12 months. The following graphs indicate the sector-specific changes for the last seven years. Over the last 12 months almost all sectors have marked increases except the office asset class which has remained unchanged over the last 12 months. The overall “Core Sector” Index is up 3% over the last 12 months. Page | 4 Economic Conditions and Real Estate Markets US and Seattle Finally, the CoStar Commercial Repeat-Sale Indices (CCRSI) is based on repeat sale pairs. This bifurcated index shows the equal-weighted composite index holding fairly steady and slightly increasing since 2022, while the value-weighted composite index declined significantly from the 2022 peak before stabilizing and beginning to increase in 2024. Since mid-2024 both indexes have had a marked increase in the fall and dip in December. This differentiation of the recent stability of smaller commercial property values, relative to the significant decline from 2022 peak values for larger institutional properties is consistent with and further explains much of the data and trends presented by the other indices. Focusing on the West market segments (including Seattle), based on the stronger Equal- Weighted data through October, the indices show a strong peak and large decline for multifamily, with the other major sectors holding fairly stead over the last three years. Once again, this index does not yet indicate post-tariff pricing, which is likely weak, at least for now. In summary near-term prospects for commercial real estate value are now fairly neutral in most sectors, after some significant decline in office and multifamily. With many assets collateralized with term debt arrangements, lenders and investors remain cautious and the near-term availability of capital is low. When capital is available it is at higher interest rates than typical over the last 10 years, and leveraged returns in particular are under pressure. Industrial is a current concern due to the impact of tariffs, and there has been significantly reduced ship traffic in the last two months. Otherwise, increased cap rates have negatively impacted values, while in most sectors stable or slightly rising rental rates have mitigated or alleviated the downward pricing pressure. Page | 5 Economic Conditions and Real Estate Markets US and Seattle Seattle Area Economy The Seattle and Western Washington economies have mostly paralleled the national trends. The Seattle area has remained a relatively bright spot nationally, due to the relative stability and good employment outlook because of its establishment as a world center for software development, as the foundation and headquarter location for two of the five most valuable US corporations (Microsoft and Amazon). These companies directly employ about 100,000 workers in the metropolitan area, at high average wages of about $150,000. Furthermore, the employment talent that has flooded the area in the last 10 years creates demand from other market competitors, creating a center of innovation and a nexus of employment growth. These employers notably include Meta and Google, in addition to a wide range of local, national, and international companies ranging from startup to industry leaders. The corporate growth and high wages create some problems including occupant and tenant displacement, homelessness, and high housing prices. Overall, the region provides a positive economic and real estate situation compared to most markets, and the Seattle area remains at the relative forefront of investment demand and value maintenance. In August 2024 ADP released a ranking of the 55 US metro markets with populations of at least 1 million. Using the metrics of pay rate, pay growth, and level of hiring over the last 12 months (ending June 2024) Seattle ranked 4th overall, essentially at the very top of the scale for wage level and wage growth, but somewhat lagging on hiring rate relative mostly to a number of smaller markets. According to a 2022 Brooking Institution report Seattle is one of 8 superstar metropolitan technology hubs in the US, with 159,000 tech workers in 2019, and a cumulative average growth rate of +7.6%/year over the period 2015-2019. These superstar hubs are responsible for the majority of the US tech industry employment growth. According to the Axios- Generation Lab Next Cities Index, which tracks U.S. work and culture trends through geographic preferences, Seattle is America’s most desired post-graduation destination for college students. On the other hand, the Brookings report also identifies the recent trend of decentralization as lowering the net growth rate significantly during 2021, concluding; “the pandemic years have raised the promise of tech decentralization through remote work and new siting decisions. However, the continued dominance of tech’s long-standing hubs ensures that the “rise of the rest” won’t happen easily”. The prospects for the Seattle area for continued tech focus and employment growth (accompanied by high wages and prices) appear to be moderate today. Page | 6 Economic Conditions and Real Estate Markets US and Seattle A snapshot of office occupancy by the largest employers was compiled by the Puget Sound Business Journal as of July 2024. Four of the six or so international technology giants occupy over 33 million sf of office, representing 30% of the entire office market of about 110 million sf in the region. Net hiring has largely paused for the time being, and overall, the net absorption of space by these companies has been neutral (largely because Microsoft vacated Bellevue properties as it moved employees to the new campus expansion space in Redmond). In general Seattle and King County have recently continued to witness moderate net population and job growth, with Seattle last year accounting for 18,500 (+2.3%) or more than half of the 30,300 population increase in King County from 2023-2024 (+1.3%). Estimates for Seattle area average daily foot traffic, relative to pre-pandemic levels almost five years ago are at about 63% in July 2024, continuing a moderate recovery trend. The figures define “workers” as coming in 3 days per week or more, and Amazon’s mandate for that level of in-office attendance a year ago is presumably influential, as other employers have gradually adopted similar requirements or goals. With technology employment particularly prone to work-from-home trends and considering the weighting of employment in Seattle these figures are low by national standards, yet the local feeling of optimism and noticeable increases in day and night activity, combined with fairly robust tourism sector (one of the top destinations domestically and increasingly internationally), with hotel occupancy in Seattle actually exceeding 2019 pre-pandemic Company Name Square Feet of Office Space Occupied, 2024 Rank Change from 2023 1 Year Net Absorption Company Classification Amazon.com Inc.17,920,000 sf 1 5.0%896,000 sf Giant Tech Microsoft Corp.10,910,000 sf 2 -13.9%-1,516,490 sf Giant Tech Meta Platforms 2,560,000 sf 3 13.2%337,920 sf Giant Tech Google Inc.1,990,000 sf 4 10.0%199,000 sf Giant Tech Expedia Group Inc.1,380,000 sf 5 0.1%1,380 sf Travel T-Mobile US Inc.1,280,000 sf 6 -9.7%-124,160 sf Telecom Costco Wholesale Corp.1,200,000 sf 7 0.0%0 sf Consumer The Boeing Co.860,999 sf 8 -51.8%-445,997 sf Aerospace WeWork 804,814 sf 9 -19.3%-155,329 sf Real Estate Starbucks Coffee Co.784,640 sf 10 1.1%8,631 sf Consumer Total 39,690,453 sf -2.0%-799,046 sf Largest Office Occupiers in Seattle Area As of July, 2024 (Source: PSBJ and CoStar) Page | 7 Economic Conditions and Real Estate Markets US and Seattle levels in summer 2024. Unlike many cities Seattle has a significant residential population downtown, at about 106,000 residents (mostly in fairly newly constructed apartments and condos, with strong income demographics), and the core area is one of the most walkable and bikeable in the US. Seattle Real Estate Investment Conditions Seattle has generally outperformed the National averages in terms of the desirability of commercial real estate, as demonstrated by relatively lower going-in cap rates, and lower required yields or returns than National or Regional averages (leading to higher values for otherwise similar income properties). The following table provides a snapshot comparison by sector as of 2nd Quarter 2025, provided by the RERC Survey of Investment Criteria: Page | 8 Economic Conditions and Real Estate Markets US and Seattle In general investment conditions improved slightly over last quarter on the average. Seattle slipped on average IRR required for investment, a proxy for overall risk perception, now standing as the 11th lowest out of 47 cities, the lowest ranking in some time. As a west coast city, only LA is lower. Seattle remains high for potential reward and income increase though, with the 5th lowest average cap rate, essential a prediction of stronger than average future potential for economic growth. The strong economic prospects for employment and population growth due to the establishment of modern growth industries, and an attractive and desirable residential environment are positive, but the exposure the employment- vulnerable tech industry darkens the picture. Summary and Conclusions In summary, while Covid impacts and concerns have finally faded, structural changes to the commercial real estate markets have increased the uncertainty and volatility of this investment class. Retail is generally back, travel and visitation are back, housing is in short supply with home values and apartment rents faring pretty well. Tariff concerns may have changed the landscape to some extent, with concern particularly evident for industrial logistics properties and for the retail sector. A weak office market and high cost of living are significant current concerns, and pricing of most real estate is somewhat volatile and uncertain at this time. Seattle, King County and the surrounding region nevertheless continue as prime locations for residence and employment. Page | 9 Economic Conditions and Real Estate Markets US and Seattle Rank*Business Name WA State Employment Primary WA City Companywide Revenue ($Billion, 2023) Companywide Employment (1,000s, 2023) Previous Yr's Rank 1 Amazon.com 87,000 Seattle $574.79 1,500.0 1 2 The Boeing Co.66,797 Everett $77.79 170.7 2 3 Microsoft Corp.55,119 Redmond $211.92 228.2 3 4 Joint Base Lewis-McChord 54,025 McChord N/A 54.0 4 5 University of Washington Seattle 53,305 Seattle $7.71 55.7 5 6 Providence 46,000 various $0.03 120.0 9 7 Navy Region Northwest 37,000 Silverdale N/A 37.0 6 8 Walmart Inc.22,655 various $648.13 2,100.0 8 9 Costco Wholesale Corp.21,500 Issaquah $242.29 316.0 11 10 Kroger Co.21,000 various $150.04 414.0 10 11 MultiCare Health Systems 20,660 Tacoma $4.30 21.5 12 12 Albertsons Cos. dba Safeway, Haggen, Albertsons 20,000 various $79.24 300.0 7 13 Virginia Mason Franciscan Health 18,000 Seattle $4.10 18.0 13 14 Alaska Air Group Inc.11,443 SeaTac $10.43 23.5 14 15 Seattle Children's 10,170 Seattle $3.86 10.3 16 16 Starbucks Coffee Co.10,000 Seattle $35.98 381.0 15 17 Meta Platforms 8,000 Seattle $134.90 67.3 18 18 Kaiser Permanente 7,500 various $70.80 223.7 17 19 Washington State University 7,250 Pullman $1.37 7.3 20 Google Inc.7,000 Seattle $307.39 182.5 20 21 T-Mobile US Inc.6,552 Bellevue $63.20 66.8 19 22 Nordstrom Inc.6,500 Seattle $14.69 54.0 22 23 Seattle Public Schools 6,324 Seattle $1.00 6.3 21 24 Fred Hutchinson Cancer Center 6,158 Seattle $2.35 6.4 23 25 Pacific Northwest National Laboratory 6,089 Richland N/A 6.5 27 26 Tacoma Public Schools 4,500 Tacoma $0.55 4.5 33 27 Blue Origin LLC 4,286 Kent N/A 9.3 29 28 Catholic Community Services and Catholic Housing 4,180 Seattle $0.29 4.2 29 Oracle Corp.4,043 Seattle $49.95 164.0 30 30 Valley Medical Center 3,800 Renton $2.75 3.8 28 31 Overlake Medical Center & Clinics 3,740 Bellevue $0.73 3.7 35 32 Salesforce 3,654 Bellevue $34.86 73.3 34 33 Spokane Public Schools 3,629 Spokane $0.63 3.6 21 34 Vancouver Public Schools 3,300 Vancouver $0.39 3.3 36 35 Expedia Group Inc.3,290 Seattle $12.84 17.1 25 36 PACCAR Inc.3,200 Kirkland $35.13 32.4 37 37 Lake Washington School District 3,187 Redmond $0.68 3.2 40 38 Western Washington University 2,738 Bellingham $0.20 2.7 39 39 Columbia Hospitality 2,602 various $0.41 3.2 41 40 Premera Blue Cross 2,589 Mountlake Terrace N/A 3.2 38 41 Puyallup School District 2,580 Puyallup $0.38 2.6 31 42 URM Stores Inc.2,250 Spokane $1.80 3.2 47 43 JPMorgan Chase & Co.2,213 various $158.10 311.7 55 44 Port of Seattle 2,200 Seattle $0.95 2.2 43 45 Pfizer Inc.2,140 Everett $58.50 88.0 50 46 Umpqua Bank 2,027 various $2.00 5.2 45 47 Accenture 1,950 Seattle $64.10 733.0 49 48 Comcast 1,829 Lynnwood $121.00 186.0 48 49 Bank of America 1,800 various $98.58 213.0 42 50 PCC Community Markets 1,794 Seattle $0.44 1.8 51 Aegis Living 1,697 various $0.26 2.9 52 52 Seattle University 1,587 Seattle $0.24 1.7 59 53 Nintendo of America Inc.1,540 Redmond $4.80 7.7 51 54 Zillow Group Inc.1,500 Seattle $1.95 6.3 55 55 Avista Corp.1,499 Spokane $1.75 1.9 54 56 Expeditors International of Washington Inc.1,423 Seattle $9.30 18.1 57 57 Gonzaga University 1,407 Spokane $0.42 1.4 58 F5 Inc.1,400 Seattle $2.81 6.5 53 59 TikTok 1,318 Bellevue $16.00 7.0 60 KeyBank 1,160 various $6.40 17.0 *ranked by employment in Washington State, based on data compiled by the Puget Sound Business Journal, September 2024 Top 60 Employers in Washington McKee Appraisal Real Estate Services & Consulting, Inc. (File 46002, February 25, 2026) APPRAISERS' EXPERIENCE & QUALIFICATIONS McKEE APPRAISAL REAL ESTATE SERVICES & CONSULTING, INC. 600 1st Avenue, Suite 102-2074, Seattle, Washington 98104 Telephone (206) 343-8909 EXPERIENCE & QUALIFICATIONS ___________________________ ERIC MCKEE, MAI Eric McKee graduated from the University of Washington with a Bachelor of Arts Degree in Economics. His studies were focused on international economics. He is employed as a Principal Appraiser and senior manager with McKee Appraisal, an established company specializing in urban commercial real estate appraisal currently employing 14 professional appraisers. Since joining McKee Appraisal in 2010, Eric has appraised a variety of property types throughout the Puget Sound Region including apartment, retail, industrial, office, commercial and residential land, and special purpose. This work has been conducted for institutional, municipal, and private clients. He has significant experience in complex acquisition appraisals and eminent domain, including numerous appraisals for Sound Transit (acquiring for LINK light rail) and King County (for acquisition of wastewater tunnels and CSO projects within Seattle). Currently, Eric is Project Manager for firm acquisition appraisals in support of Sound Transit’s Stride S3 Line. Eric became a State-Certified General Real Estate Appraiser in Washington State in 2018, and attained the MAI designation in 2024. Mr. McKee has specific expertise in the analysis and appraisal of leased fee and leasehold positions, discounted cash flow analysis and urban development land. Eric is a lifelong resident of Seattle. He manages and mentors appraisers and appraiser trainees, in addition to providing strategic business management and business development for the company. McKEE APPRAISAL REAL ESTATE SERVICES & CONSULTING, INC. 600 1st Avenue, Suite 102-2074, Seattle, Washington 98104 Telephone (206) 343-8909 EXPERIENCE & QUALIFICATIONS ___________________________ JOSETTE PRATT Josette Pratt graduated from Amherst College with a BA in Spanish and Art & the History of Art. A native New Yorker and second-generation appraiser, she spent 12 years working for KTR Real Estate Advisors, a New York City appraisal company, where she was a Senior Appraiser with experience inspecting and appraising a wide range of property types, including land, multifamily, retail, office, and industrial for various client types. She also provided litigation support services in connection with appraisals of Manhattan properties. Prior to KTR, she worked for a boutique marketing and advertising agency specializing in real estate. Josette moved to Seattle in 2020. Josette is a Certified General Real Estate Appraiser in Washington State (Washington Certification No. 25005557). Appraisal coursework includes Basic Appraisal Principles, Basic Appraisal Procedures, Income Approach, Sales Comparison Approach, Site Valuation & Cost Approach, Market Analysis/Highest & Best Use, Report Writing & Case Studies, USPAP, Statistics, Modeling and Finance, Commercial Appraisal Review, Expert Witness for Commercial Appraisers, Advanced Market Analysis and Highest & Best Use, and Advanced Income Capitalization. McKEE APPRAISAL REAL ESTATE SERVICES & CONSULTING, INC. 600 1st Avenue, Suite 102-2074, Seattle, Washington 98104 Telephone (206) 343-8909 EXPERIENCE & QUALIFICATIONS ___________________________ AMY BRADLEY Amy is third generation Seattleite and a second-generation Bradley in local commercial real estate. A previous employee of Commercial Brokers Association and CoStar, Inc, as well as working in residential investment and construction; she has acted as a bookkeeper, researcher, educator, and project manager. She has spent substantial time as a researcher and educator, advising brokers, appraisers, and investors in new research tools and best practices in variety of asset classes. In addition to small group advisory, she has also spoken at CCIM Insights Breakfast and numerous market update presentations. An avid hiker, backpacker, and boater, Amy splits her off time between trails in Washington, fire towers in Montana, and Western Washington rivers. She is a member of Washington Trails Association and Everett Rowing Association. Amy is a Registered Real Estate Appraiser Trainee (Washington State Certificate No. 21003470) and is currently completing coursework toward a BA at the Everett College campus. Appraisal coursework includes Basic Appraisal Principles, Basic Appraisal Procedures, and USPAP.