How do you go about in a complex situation such as this. Forget for while the investing capital or the capital investment part of it and let us try out other means.
It may be seen that logically vacancy rates in - existing structures - can not lie side by side with
new constructions. Such expressions are oxymorons, which are incongruous in nature. May be this is not pure grammar but logic. So C and D are out.
Among the rest of A and B and E, to make life simple, A and E have modification problems. In A and E, the phrase - that are exceptionally high
– seems to modify existing structures rather than vacancy rates. B is the only one with proper modifictaion and logic.
Now on to whether capital investment or investing capital: Normally encourage
entails a noun such as person or action or an animal or even a gerund. By that score, we may prefer - encourage capital investment to investing capital, unless one seeks to argue that investing also is a kind of gerund. Investing being a transitive verb will need - investing of – to be a gerund
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