Reference no: EM133112718

Estimating Office Demand

Suppose that the employment in a certain office market can be separated into three industries. There are 70,000 workers in Industry A and 75% of the workers are office workers. There are 45,000 workers in Industry B and 90% of the workers are office workers. There are 20,000 workers in Industry C and 50% of the workers are office workers.

a. How many office workers currently work in the market?

b. If current office space per worker is 175 square feet, what is the current demand for office space?

c. If Industry A is expected to grow at a rate of 4% per year, Industry is expected to grow at a rate of 2% per year, and Industry C is expected to decline by 1% per year, what will total employment in this market be for years 2, 3, and 4?

d. How many office workers will there be in years 2, 3, and 4?

e. If office space per worker is expected to decline at a rate of 2% per year, what will the office space per worker be in years 2, 3, and 4?

f. What will office demand be in years 2, 3, and 4?