a. Assume that you are in the market to rent a one bedroom apartment for a one year period. The landlord offers you two options: 1) pay the asking rent of $2,800 per month, or 2) pay $2,900 per month with the first month free. If you choose option 2, what will your effective rent be per month?

1. 2,100
2. 2,658
3. 2,900
4. 2,800

b. Assume an office market contains 100M SF of inventory and 10% of that the space is vacant. Google announces that it is expanding and it will hire 10,000 new workers. At the same time, a malpractice lawsuit against the law firm of Dewey, Cheetham and Howe results in the loss of 5,200 jobs and the closing of its offices. Assuming that office workers need 200 SF per person, what is the market vacancy rate after the net demand for office space is created?

1. 9.04%
2. 8.94%
3. 10.0%
4. No change