Goodbody, Inc., is in the process of finding tenants for its newly com

A is the right answer.

Premise: Goodbody, Inc., is in the process of finding tenants for its newly completed Parrot Quay commercial development, which will make available hundreds of thousands of square feet of new office space on what was formerly derelict property outside the financial center of the city.

Premise 2 / Discrepancy: Surprisingly enough, the coming recession, though it will hurt most of the city’s businesses, should help Goodbody to find tenants.

From the first premise we know that a number if office spaces for businesses have been put up outside the business center and the owner of these offices has put them up for rent.

Premise 2 however states that the economy is in recession. Of course one will expect that a recessive economy will slow down business activities and hence the owners of the newly built office spaces will have a daunting task in their bid to get tenants for the offices. Alas, premise 2 disagrees by stating that the recession will rather facilitate the rental of the offices.

To resolve this discrepancy, we need an answer choice that presents an opportunity in the period of recession for the real estate company.

(A) Businesses forced to economize by the recession will want to take advantage of the lower rents available outside the financial center. This is the correct answer. This option implies that the need for businesses to cut costs means that they will want to pay lower rents for offices outside the business center where naturally rent costs are higher. This is exactly in line with what is expected above.

(B) Public transportation links the financial center with the area around Parrot Quay.
This option does not resolve the discrepancy in the information provided in the two premises above.

(C) The area in which the Parrot Quay development is located became derelict after the heavy industry that used to be there closed down in a previous recession.
Irrelevant as far as the resolution of the discrepancy is concerned.

(D) Many of Goodbody’s other properties are in financial center and will become vacant if the recession is severe enough to force Goodbody’s tenants out of business.
So tenants in properties of the developer in the financial center are forced to vacate their offices as a result of the recession, does this mean automatically these businesses will come to take up the new offices? No. It is possible that these businesses may become bankrupt and hence fold up.

(E) The recession is likely to have the most severe effect not on service industries, which require a lot of office space, but on manufacturers.
The fact that the recession is not severe on the service industry does not mean that these service businesses would want to relocate from their current locations to the new office spaces recently constructed. So E does not resolve the discrepancy.

Posted from my mobile device