a) Different industries require different amounts of space. Suppose that somebody working in software development requires 100 square feet of space to do their job, that somebody working in an insurance company would require 250 square feet of space. Suppose also that 3,000,000 square feet of space is used by insurance companies and that 5,000 employees are now working in software development in the Kitchener area. Over the next year, employment in software development is expected to increase by 10%, and employment in the insurance sector is expected to decrease by 20%. Using this information, estimate the increase in square feet demanded for use in the office sector in the Kitchener area.

B) The location quotient for the information and communications technology (CIT) sector (of which software development is the majority of employment) in the Kitchener area is 2.8. Under what conditions is that fact a positive sign (from the perspective of an owner of a local multi-residential property)?

C) Suppose that the government of Ontario decides to spend $1b in the Kitchener area to stimulate the economy. In terms of the price of office properties, how would the effects of this policy differ from the Central Business District and the fringe areas?