You want to develop an office project and come across the following market projection data for the years between 2010 and 2012. You plan to start this immediately if there is enough demand for it and will take 2 years to complete. Construct a basic demand model and tell me either how much excess supply or how much excess demand is projected to exist in the market in 2012.

Current Stock: 24,000,000

Construction Completions: 3,000,000

Construction Starts: 2,000,000

Gross Absorption: 27,000,000

Vacancies: 4,000,000

Net Absorption: 23,000,000

SQUARE FEET

A) 3,000,000 in excess supply

B) 3,000,000 in excess demand

C) 6,000,000 in excess supply

D) 6,000,000 in excess demand