Transforming a 7.17-Acre Outside Storage Property

Storage Property Industrial Flex

Background

A 7.17-acre outside storage facility was underperforming due to below-market rental rates, late rent payments, and outdated transaction methods. The property required a strategic approach to maximize revenue, improve tenant reliability, and modernize payment systems.

Challenges

  • Below-market rental rates led to lost revenue opportunities.
  • A high percentage of tenants consistently paid rent late.
  • All transactions were handled via mail or in person, creating inefficiencies and delays.

Strategy & Execution

  1. Rental Rate Adjustments – Incrementally increased rental rates to align with market values while maintaining tenant retention.
  2. Tenant Payment Improvement – Implemented clearer lease terms, proactive communication, and late payment penalties to encourage timely rent payments.
  3. Modernized Payment Processing – Introduced an online payment system to provide convenience and reduce collection delays.
  4. Occupancy Optimization – Focused on leasing strategies to maintain full occupancy while transitioning to higher rental rates.

Results

  • Increased gross rental income over 32%.
  • Achieved and maintained 100% occupancy.
  • Over 55% of tenants transitioned to online payments, reducing administrative burden and late payments.

Conclusion

By addressing pricing, payment processes, and tenant habits, the property transformed into a high-performing asset. The combination of strategic rent increases, operational efficiencies, and technology adoption significantly boosted profitability and stability.

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Denver Commercial Property Management is Goodman’s specialty. With a primary focus on multi-tenant industrial properties, the Goodman professionals apply over fifty years of experience to all facets of commercial property management. From NNN reconciliations to the ins-and-outs of zoning uses for specific tenants, Goodman knows Denver commercial property management.

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