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Using the concepts of the 4-quadrant diagram, what would happen under the following scenario. The market is stable and at equilibrium, suddenly stock and bond

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Using the concepts of the 4-quadrant diagram, what would happen under the following scenario. The market is stable and at equilibrium, suddenly stock and bond returns fall and cap rates on office properties fall by 20%, yet no new tenants are looking for space. What happens to the real estate system? Real estate prices go up, development increases, and new supply rises Real estate prices go down, development increases, and new supply rises Real estate prices go up, development decreases, and new supply falls Real estate prices go down, development decreases, and new supply remains fixed

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