Small City currently has $1,188,000$ square feet of office space, of which $891,000$ square feet is occupied by $3,000$

employees who are 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 of just $102$ additional employees per year for the next three years. The

amount of space per employee is expected to remain the same. However, a new $50,200$ square foot office building

was started before the recession and its space is expected to become available at the end of the current year $($one year

from now$).$ No more space is expected to become available 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?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

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.$)$