How Our Value-Add Strategy Turns Partially Occupied Industrial Assets Into High-Performing Investments

By Casey DiMascio, Broker Relations at CommercialGRP

At CommercialGRP, we see opportunities where others see challenges. Partially occupied industrial properties often get overlooked by investors who want the stability of fully leased assets. But for us, these properties represent one of the most effective ways to create outsized value.

Our value-add strategy is built on three pillars: targeted leasing, operational improvements, and strategic repositioning. Together, these transform underperforming assets into high-performing investments.

Unlocking Leasing Potential

The key to increasing a property’s performance often starts with occupancy. A partially occupied facility allows us to immediately boost income by filling vacant space. Leveraging our strong broker relationships, we identify quality tenants that align with the building’s specifications and market demand. By bringing in the right mix of tenants, we not only improve cash flow but also increase the overall stability of the property.

Enhancing Operations

Many partially occupied assets suffer from inefficiencies—whether that’s outdated systems, poor property management, or underutilized space. We focus on optimizing operations by improving energy efficiency, implementing better management practices, and ensuring tenant needs are met quickly. These operational upgrades drive tenant satisfaction and long-term retention.

Strategic Repositioning

Sometimes the opportunity lies in repositioning the property to meet modern industrial demands. That could mean upgrading loading docks, improving clear heights, or reconfiguring layouts for more flexible use. With the continued rise of e-commerce and logistics requirements, strategic improvements can significantly elevate the market appeal and value of an asset.

Driving Returns

By executing this value-add strategy, we create a win-win scenario: tenants gain a property that better suits their needs, and investors benefit from stronger occupancy, higher NOI, and ultimately, greater property value.

If you’re interested in learning more about how location and tenant demand influence industrial investment decisions, check out some of our other insights:

  • The Role of Location in Industrial Real Estate Value

  • What Tenants Look for in Industrial Properties (15K–120K SF)

  • How to Evaluate an Industrial Property for Long-Term Investment

At CommercialGRP, we specialize in turning overlooked industrial assets into strong-performing investments. By focusing on value creation, we help our partners achieve long-term growth and success in a competitive market.