If occupancy is higher than the equilibrium level, what are you likely to observe in the market for rental space? O Rapid increase in rents and a low likelihood of new construction Slowing increase in rents and a high likelihood of new construction. O Rapid increase in rents and a high likelihood of new construction. O Slowing increase in rents and a low likelihood of new construction.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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If occupancy is higher than the equilibrium level, what are you likely to
observe in the market for rental space?
O Rapid increase in rents and a low likelihood of new construction
Slowing increase in rents and a high likelihood of new construction.
O Rapid increase in rents and a high likelihood of new construction.
Slowing increase in rents and a low likelihood of new construction.
Transcribed Image Text:If occupancy is higher than the equilibrium level, what are you likely to observe in the market for rental space? O Rapid increase in rents and a low likelihood of new construction Slowing increase in rents and a high likelihood of new construction. O Rapid increase in rents and a high likelihood of new construction. Slowing increase in rents and a low likelihood of new construction.
Last year there was 40 million square feet of office space in Nashville, of
which 88% was occupied. Over the course of the year, there was new
deliveries totaling 1.6 million square feet. Net absorption for Nashville was
-400,000sf (there was less new leasing than there was new deliveries;: the
difference was 400,000sf). What is the new occupancy rate in Nashville?
86.4%
O 87.0%
O 88.5%
O 87.5%
Transcribed Image Text:Last year there was 40 million square feet of office space in Nashville, of which 88% was occupied. Over the course of the year, there was new deliveries totaling 1.6 million square feet. Net absorption for Nashville was -400,000sf (there was less new leasing than there was new deliveries;: the difference was 400,000sf). What is the new occupancy rate in Nashville? 86.4% O 87.0% O 88.5% O 87.5%
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