Answered step by step
Verified Expert Solution
Question
1 Approved Answer
plssss help thanks! Small City currently has 1,068,000 square feet of office space, of which 801,000 square feet is occupled by 3,000 employees who mainly
plssss help thanks!
Small City currently has 1,068,000 square feet of office space, of which 801,000 square feet is occupled by 3,000 employees who mainly involved in professional services such as finance, insurance, and real estate. Small City's economy has been fairly strong in recent years, but employment growth is expected to be somewhat lower during the next few years, with projections of an increase Just 122 additional employees per year for the next three years. The amount of space per employee is expected to remain the same However, a new 112,200 square foot office buliding was started beforethe recession and its space is expected to become available the end of the current year (one year from now). No more space is expected to become avaliable after that for quite some time. Required: a. What is the current occupancy rate for office space in Small City? b. How much office space will be absorbed each year for the next three years? c. What will the occupancy rate be at the end of each of the next three years? d. Based on the above analysis, do you think it is more likely that office rental rates will rise or fall over the next three years? Complete this question by entering your answers in the tabs below. What is the current occupancy rate for office space in Small City? How much office space will be absorbed each year for the next three years? What will the occupancy rate be at the end of each of the next three years? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Based on the above analysis, do you think it is more likely that office rental rates will rise or fall over the next three years Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started