What is current occupancy rate for office space

Assignment Help Financial Management

Reference no: EM131326760

Small City currently has 1 million square feet of office space, of which 900,000 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 due to the current global recession, employment growth is expected to be somewhat low over the next few years, with projections of an increase of just 100 additional employees per year for the next three years.

The amount of space per employee is expected to remain the same. However, a new 50,000 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.

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?

Reference no: EM131326760

Questions Cloud

Which level of analysis is the primary focus of this case : Explain how each of the leadership theory classifications applies to this case, and which one is most relevant.

What is effective tax rate and before tax equivalent yield : What is the effective tax rate and before-tax equivalent yield?- How would you evaluate the tax benefits of this investment?

Evaluate all materials and labor variances in a spreadsheet : Calculate all materials and labor variances in a spreadsheet by using a program like Excel. Be sure to include price, quantity, wage rate, and labor efficiency variances.

Describe the process of perception as a series of seven step : Describe the process of perception as a series of seven steps, beginning with the environmental stimulus and culminating in the behavioral responses of perceiving, recognizing and acting.What is the role of higher-level or "cognitive" processes in ..

What is current occupancy rate for office space : What is the current occupancy rate for office space in Small City?- How much office space will be absorbed each year for the next three years?

What is the motivation for a sale leaseback of the land : What is financial leverage? Why is a one-year measure of return on investment inadequate in determining whether positive or negative financial leverage exists?

What are positive and negative financial leverage : What are positive and negative financial leverage? How are returns or losses magnified as the degree of leverage increases?

Who has an online library that includes jung the mystic : WHO HAS AN ONLINE LIBRARY THAT INCLUDES JUNG THE MYSTIC BY GARY LACHMAN????

What is meant by a participation loan : What is meant by a participation loan? What does the lender participate in? Why would a lender want to make a participation loan? Why would an investor want to obtain a participation loan?

User Account

All Pages