Last year there was 40 million square feet of office space in Nashville, of which 88% was occupied. Over the course of the year, there was new deliveries totaling 1.6 million square feet. Net absorption for Nashville was -400,000sf (there was less new leasing than there was new deliveries; the difference was 400,000sf). What is the new occupancy rate in Nashville?

Group of answer choices

87.0%

87.5%

88.5%

86.4%