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Question

Difficulty: HardStrengthen

Financial analyst: In the city of Veridia, the vacancy rate for commercial office spaces has doubled over the past three years. Surprisingly, the average asking rent for available office spaces in the city has increased by 15% during this same period. This rent increase is undoubtedly driven by landlords aggressively renovating their vacant properties to premium 'Class A' status, which naturally commands a higher market price.

Which of the following, if true, most strongly supports the financial analyst's argument?

  1. The commercial properties that became vacant over the past three years were almost exclusively older, lower-tier office spaces that previously commanded the lowest rents in the city.Answer
  2. B
    Most of the office spaces that were vacated in Veridia over the past three years were already classified as premium 'Class A' properties before they lost their tenants.
  3. C
    Office spaces in Veridia that have been recently renovated to 'Class A' status typically command asking rents that are significantly higher than the citywide average.
  4. D
    The total number of businesses looking to rent office space in Veridia has decreased by exactly 15% over the last three years.
  5. E
    In several other cities with economies similar to Veridia's, an increase in commercial vacancy rates has strongly correlated with an increase in property renovations.

Answer

The option stating that the properties that became vacant were almost exclusively older, lower-tier office spaces that previously commanded the lowest rents in the city.
The correct answer strengthens the argument by ruling out a statistical alternative cause. If the properties that recently became vacant were the cheapest in the city, adding them to the 'available' pool should have dragged the average asking rent down. The fact that the average went up by 15% instead means that the asking prices for these newly vacant spaces must have been raised dramatically. This strongly validates the analyst's conclusion that the landlords actively renovated these spaces to command higher prices.

Step-by-Step Solution

1
Identify the core components of the argument.
Premises: Vacancy doubled, but average asking rent of available spaces increased by 15%. Conclusion: Landlords are renovating vacant spaces to premium status.
Understanding the exact causal claim and the evidence provided is necessary to identify gaps in the reasoning.
2
Identify the logical gap or vulnerability in the argument.
The argument assumes a causal relationship (renovations caused the rent increase) based on statistical data. However, the average rent of available spaces could mathematically increase simply if the newly vacant spaces were already the most expensive ones in the city.
Finding alternative explanations for the evidence is the primary way to evaluate and ultimately strengthen LSAT causal/statistical arguments.
3
Select the option that eliminates the alternative explanation.
The correct option establishes that the newly vacant properties were originally the cheapest. This removes the mathematical artifact as an alternative explanation, leaving the author's causal explanation (renovations) as the most logical reason the average increased.
Ruling out a highly plausible alternative cause is one of the most powerful ways to strengthen an argument on the LSAT.

Key Concept

Strengthening causal arguments by ruling out statistical artifacts or alternative causes.
Estimated Time:2m 0s
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