Real Estate Report With more than 40 million square feet, Richardson has one of the largest concentrations of office, flex and industrial space outside of the Dallas CBD. Rates Rents are quoted on a per square foot - per year basis. Office space is typically quoted on a gross rate, and will often include an electric cost pass-through. Flex space, also called office flex or office showroom space, is usually quoted on an “industrial gross” basis. In addition to base rent, a tenant pays its own electrical and janitorial costs, and a portion of certain common area charges. Office, Flex and Industrial Space Overview SF (in Millions) Vacancy Average Total Office, Flex, & Industrial 40.3 12.3% $20.43/SF Office Total 22.3 16.8% $25.94/SF Office - Class A 10.8 16.3% $28.41/SF Office - Class B, C, or Other 11.5 17.3% $23.63/SF Flex Total 9.5 9.3% $14.77/SF Industrial Total 8.5 3.9% $12.74/SF Source: CoStar Realty Information, Inc. - Feb. 2023 Examples Office, Flex and Industrial Buildings Class A Office Space Definition: An office property with highest quality construction and workmanship, materials and systems, significant architectural features, high quality/expensive finish and trim, abundant amenities, first rate maintenance and management. Class B and Class C Office Space Definition: Class B offers more utilitarian space without special attractions, ordinary architectural design and structural features, average interior finish, systems, and floor plans, adequate systems and overall condition. Definition: Class C are "no-frills", older buildings. Flex and Industrial Space Definition: Flex space also called office/showroom, designed to be versatile, used in combination with office, R&D, some service retail, including but not limited to industrial, warehouse, and distribution uses. Definition: Industrial space has more industrial uses such as assembly work, processing, and/or manufacturing products from raw materials or fabricated parts. Also warehousing, distribution, and maintenance facilities.