Refer to the highest and best-use analysis in the table below.

Use	(a) Year 1 NOI	(b) (r−g)	(c) R	(a÷c = d) Implied Property Value (PV)	(e) Construction Cost of Building	(d) − (e) Implied Land Value(Residual)
Office	$ 528,000	0.13−0.03	0.10	$ 5,280,000	$ 4,000,000	1,280,000
Retail	$ 628,000	0.12−0.04	0.08	7,850,000	$ 6,750,000	1,100,000
Apartment	$ 433,000	0.12−0.03	0.09	4,811,111	$ 3,000,000	1,811,111
Warehouse	$ 428,000	0.10−0.02	0.08	5,350,000	$ 4,000,000	1,350,000

Required:

Suppose that the warehouse income would grow at 3 percent per year instead of 2 percent.

a. Does this change the highest and best use of the site?

b. What is the new implied land value? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)