How An Industrial Owner Turned A 57.7% Vacancy Crisis Into A 7.7% Income Gain
AVOID LOSING RENTAL INCOME
CHALLENGE
The owner faced the simultaneous departure of two tenants in the same industrial building. This transition occurred during a localized market crisis:
Extreme Vacancy: The submarket hit a record-high vacancy rate of 57.7%.
New Competition: An additional 182,000 SF of competing inventory entered the market at the same time.
Financial Risk: The owner faced a “perfect storm” that threatened a significant loss of rental income.
ACTION
The owner bypassed passive listing methods for a systematic, data-driven hunt for qualified users. The strategy focused on proactive engagement:
Network Leverage: The process utilized a deep network of industry relationships built over 16 years to find specific matches.
Direct Outreach: Qualified prospects were identified and the property was introduced to them through direct, personal outreach.
Multi-Channel Marketing: A targeted campaign used professional photography and digital distribution to reach prospects locally and nationally.
Logistics Focus: The owner targeted distribution-heavy users by highlighting the property’s proximity to I-45, US 59, and the Hardy Toll Road.
RESULT
The owner outpaced the market by prioritizing speed and data:
Zero Downtime: The first building was leased before the previous tenant’s lease even expired.
Rapid Execution: The second building was fully leased just 30 days later.
Increased Value: The owner secured a 7.7% increase in total rental income, directly boosting the property’s Net Operating Income (NOI).
I am very glad we selected Patrick and RE/MAX Commercial Advisors.