Question $3$

$3$ pts

You are appraising a multi tenant office property that is currently projected to be $85\%$ occupied during Year $1,95\%$ Occupied During Year $2.$ The market occupancy is anticipated to be $95\%$ during the entire holding period. What vacancy factor will you apply for Years $1$ and $2$ of the proforma income schedule:

Year $1-95\%$; Year $2-95\%$

Year $1-15\%$; Year $2-5\%$

Year $1-10\%$; Year $2-5\%$

Year $1-5\%$; Year $2-5\%$