In most cities, firms that own office buildings can renovate them for use as residential apartments. According to a news story, in many cities “residential rents are surpassing office rents.” Predict...

In most cities, firms that own office buildings can renovate them for use as residential apartments. According

to a news story, in many cities “residential rents are surpassing office rents.” Predict the effect of this trend on the

supply of office space in these cities. Use a graph to illustrate your answer.

Source: Eliot Brown, “Developers Turn Former Office Buildings into

High-End Apartments,” Wall Street Journal, May 7, 2014.