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Occupancy peaked at 51% in October, then declined slightly to ~48.8% in December.375 units occupied at year-end, down from 384 in November.January 2026 shows a modest positive start with net +1 unit (49.0% occupancy).December saw more move-outs (32) than move-ins (24) – first time in 2025.Plateau suggests the lease-up is at a critical halfway mark; re-acceleration needed in early 2026.
Monthly revenue plateaued at ~$48.5k from October through December.No significant MoM growth after sharp Q3 ramp-up (~$33k in July → $48k in Oct).December revenue slightly increased despite lower occupancy – likely due to fee income or improved collections.Key opportunity: Increase revenue by boosting occupancy or fine-tuning pricing strategy.
Leads dropped to 55 in December (from 74 in November) – likely seasonal.Conversion rate remained strong at ~73% both months – very high.Main source: Website and online channels, showing digital marketing effectiveness.Early Jan 2026: 6 new leads, 4 leases – healthy 67% conversion.Action: Increase lead volume through digital ads and SEO to grow move-ins.
GPR dropped from $119k in Nov to $93.5k in Dec (22% decline).Likely due to units marked “unrentable” or rate changes on large units.Economic occupancy at ~50.5%, close to physical occupancy (~48.8%) – shows minimal concessions and strong collections.Delinquency uptick in Nov (8% over-30 AR), but only 2 auctions in 2025.Key lever for 2026: Increase physical occupancy while holding strong economic performance.
Small units are full or nearly full:5x5: 100% occupied10x5: ~80% occupiedLarger units are underperforming:10x10: ~45% occupied10x15: ~47%10x20: only ~39% occupied (33% for ground-floor)Action items:Consider raising rates on 5x5 and 10x5 due to high demand.Run promos or rate cuts on large units to drive absorption.Revisit unit mix strategy if small unit demand remains dominant.
Delinquency: Slight rise in Nov, but well-managed via timely auctions/lien process.Concessions: Minimal by December – most tenants paying near full market.Retention: 203 move-outs vs. 419 move-ins in 2025; December move-outs increased slightly.Online reputation: Excellent, with a 4.9★ Google rating – strong asset for lead conversion.
Solid finish to 2025 despite winter slowdown; occupancy ~49%, strong collections, high lead conversion.Focus for 2026:Drive new lead traffic (especially digital).Target underperforming unit sizes (10x15, 10x20).Maintain low concessions and delinquency.Explore unit mix optimization for future phases if large-unit demand stays weak.
10x10 units (100 sq. ft.) are only ~45% occupied overall (133 of 298 units) – roughly half the 10x10s sit vacant.10x15 units (150 sq. ft.) are about 47% occupied (96 of 203 units).10x20 units (200 sq. ft.) are the most under-filled at roughly 39% occupied (only 67 of 170 units rented). For example, the ground-floor 10x20s have only 27 out of 81 occupied (~33%), and even the 10x20s on upper levels are ~45% occupied, so this size clearly needs attention.Opportunity to increase rates on small units: Since 5x5s and 5x10s are effectively full, management might implement rent increases for those sizes or at least cease any discounting. The high occupancy indicates customers value those units, so there may be pricing power there to boost revenue.Marketing/Pricing focus on large units: The 10x15 and 10x20 categories in particular need attention. Management could consider targeted promotions (e.g. first month free) or rate reductions for these unit sizes to improve absorption. It may also be worthwhile to adjust advertising to specifically reach customer segments that need larger storage (for example, businesses or households during moves who have a lot to store). Ensuring that the price differential between a 10x10 and a 10x20 is not too great could help persuade customers to take the larger units.Monitor unit mix strategy: If the trend of small-unit preference continues, the facility might explore reconfiguring some large units into smaller sizes (if structurally feasible) or at least adjusting future development plans. While that’s a long-term consideration, the current occupancy mix clearly shows excess inventory in large units relative to demand.
Delinquency and Collections: As mentioned under economic occupancy, receivables in arrears were relatively low. Accounts over 30 days past due were ~8% of charges in November (up from ~3% in October). The management took action via lien notices and auctions – by December, 2 delinquent units went to auction (with 1 of those in December itself). The fact that only 2 auctions occurred in 2025 out of 419 move-ins indicates that delinquency is being kept under control. It will be important to keep an eye on the uptick in November’s delinquency rate; however, the quick resolution (auction in December) suggests the team is proactive. Strong collections and low bad-debt write-offs will help maintain the property’s financial performance.Concessions: Premiere Fargo appears to be operating with minimal concessions by year-end. Early in the lease-up, some free months or discounts were likely used (implied by lower revenue vs. occupied rent in mid-2025), but by December the discount impact was negligible – actual rents from occupied units were ~50% of total potential, very close to the 49% physical occupancy. This means most tenants are paying full market rates. Keeping concessions low is positive for NOI, though management should be ready to offer targeted specials if needed (particularly for the larger unit sizes which are lagging). The high conversion rate also hints that current pricing is acceptable to those who need storage, so across-the-board concessions are not necessary – just strategic ones to stimulate demand where needed.Renewals/Retention: In self-storage, “renewals” are essentially month-to-month decisions by tenants to keep renting. We can infer retention by looking at move-out rates. In 2025, move-outs (203 total) were less than half of move-ins (419), but that’s expected in a lease-up (many new customers coming in). Toward year-end, the increase in move-outs (32 in December, compared to 24 move-ins) could indicate some churn as initial tenants from mid-year ended their rentals. The facility should monitor length of stay trends. So far, there isn’t an alarming move-out rate – the occupancy dip was small – but as the tenant base grows, focusing on customer service and perhaps incentives for long-term renters (like small loyalty discounts or rate-locks) might improve retention and stabilize occupancy.Online Reputation: An often overlooked KPI, the Google review rating averages 4.9 stars for Premiere Fargo – an excellent score. This likely contributes to the strong conversion of leads (customers see the high rating and trust the facility). Management should continue to solicit positive reviews and promptly address any negative feedback to maintain this advantage in the market.Overall Performance vs. Prior Month: Comparing December 2025 to November 2025 in summary: Occupancy slipped ~1.2 percentage points, revenue was flat, and lead volume fell, which are typical for a winter month. Despite that, operational metrics like conversion rate and collections remained strong. November had slightly better occupancy and lead flow, but December held steady in income and saw only a minor dip in occupancy. The early January data (albeit limited) shows promise that the negative trends are reversing (with positive net move-ins and a decent number of new leases in just a few days).
260106 Fargo Meeting Notes
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Lower rates on larger units and use deeper discounts
Thu, Aug 7
Increase rates on larger units and reduce discounts
Thu, Aug 7
calls to continue monthly through Q4 and going quarterly Q1 2026
Thu, Aug 7
Adjust rates on upper level units to follow up
@Andrew Aue
Tue, Oct 7
Argus close out will get with accounting
@Ryan Dayhoff
Tue, Oct 7
Follow up on automatic door claim/police report
@Meg Graham
Tue, Oct 7
Banners, yard signs and grass root marketing
@Meg Graham
Tue, Oct 7
LOS analysis
@Ryan Dayhoff
Tue, Nov 4
Open Sun and Mon, update marketing
@Meg Graham
Tue, Nov 4
Online email flyers, physical flyer designs, counter cards
Tue, Jan 6
Tue, Jan 6
get 2nd person hired, open 7 days per week
@Dave Keenum
Wed, Jan 14
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📦 Occupancy Trends
💰 Revenue Performance
📈 Leads & Conversions
🏷️ Gross Potential Rent & Economic Occupancy
📏 Unit Size Performance
📊 Additional KPIs
🔑 Summary & Recommendations
Premiere Fargo Performance Analysis – Dec 2025 & Early Jan 2026
Occupancy Trends
Premiere Fargo’s physical occupancy (by unit count) remained around 50% through Q4 2025, with a slight decline from ~50.0% in November to ~48.8% in December. This corresponds to 384 occupied units in November, dropping to 375 units by end of December. Notably, occupancy had peaked at ~51% in October before this late-year dip. The first week of January 2026 shows a minor uptick – occupancy rose by 1 net unit (3 move-ins vs. 2 move-outs) to 376 occupied units (~49.0% occupancy), indicating a modest positive start to the new year.
These trends suggest that after rapid lease-up earlier in 2025 (the property opened in 2025 and grew from essentially 0 to ~50% occupied over the year), occupancy plateaued in Q4. In fact, move-outs began outpacing move-ins in December (24 move-ins vs. 32 move-outs), reversing the strong net gains seen earlier in the year. (For context, there were 419 move-ins vs. 203 move-outs in total in 2025, reflecting the lease-up phase). The slight decline in late 2025 occupancy may be seasonal (winter slow-down) or due to the property approaching the half-full mark where demand needs a new push. It will be important to monitor whether the positive net absorption returns in early 2026 or if further marketing/retention efforts are needed to continue the upward occupancy trajectory.
Revenue Performance
Figure 2: Monthly revenue collected, July–December 2025. Revenue growth leveled off in Q4 2025 after steep increases in Q3.
Monthly rental revenue grew significantly in Q3 2025 and then plateaued in Q4. December 2025 revenue was $48.5k, essentially flat (+0.5%) compared to November’s $48.25k. In fact, October through December revenues were all in the ~$48k range, indicating that the strong growth earlier in the year has leveled off. This plateau aligns with the occupancy stagnation in Q4 – with physical occupancy flat to declining, revenue naturally stopped its rapid climb. For perspective, revenue had climbed sharply from about $33.0k in July up to ~$48k by October, an increase of ~45% over that period, reflecting units coming online and being leased. By November and December, however, month-over-month (MoM) growth was essentially zero.
Year-over-year (YoY) revenue comparison is not meaningful in this case, as the facility was in lease-up during 2025 (there was little or no revenue in late 2024). Instead, the key comparison is the Q4 plateau vs. Q3 growth. The flattening of revenue suggests that new leasing activity slowed and existing tenant rent levels (plus any rent increases) were not enough to push revenue higher at year-end.
Looking ahead, management should focus on reinvigorating revenue growth – either by driving occupancy higher in the vacant units or by optimizing rental rates. The fact that occupancy is only ~49% means there is substantial room for revenue upside if new customers can be attracted. Additionally, we should verify whether any seasonal promotions or discounts in late 2025 affected revenue; however, December’s collected revenue actually ticked up slightly despite occupancy dropping, hinting that delinquency recovery or fee income may have contributed to maintaining revenue (December collections exceeded the month-end occupied rent roll, as discussed under economic occupancy). Overall, the revenue trend underscores the need for renewed marketing efforts or pricing adjustments to continue the growth seen earlier in the lease-up.
Leads & Conversions
December saw a drop in leasing leads compared to the prior month, though conversion rates remained high. A total of 55 new leads were recorded in December, down from about 74 leads in November. Despite the lower lead volume, the team converted 40 leads into new rentals/reservations in December (vs. 54 in November). This yields a conversion rate of ~73% for both months – an exceptionally high rate, indicating that the majority of prospects contacting Premiere Fargo ended up renting a unit. Such a high conversion suggests strong demand among those who do inquire, or effective sales follow-up by the management team. It also implies that the main limiting factor in December was lead generation, not sales efficacy.
In terms of lead sources, the property’s marketing report shows that digital channels dominated. For December, the website and online reservation funnel accounted for the largest share (e.g. 26 direct website leads, plus additional “abandoned” or “failed checkout” leads totaling ~18). Walk-ins (8 leads) and phone calls (3 leads) were a smaller portion by comparison. This suggests that online presence is critical – the property’s high Google rating (4.9★ on average) and web marketing likely drive most traffic. The dip in total leads in December might be seasonal (fewer people relocate or seek storage around the holidays), so an uptick in January leads would not be surprising. In the first week of January 2026, early data shows 6 new leads and 4 conversions (67% conversion) in that short span, pointing toward a possible rebound in leasing activity going into the new year.
Actionable insight: Given the strong conversion rate, increasing lead flow should be a priority. Management could invest in additional marketing, especially digital ads or search engine optimization, to capture more prospects. The high success rate with those who do inquire means any boost in lead volume should directly translate into more move-ins and higher occupancy. Additionally, maintaining the stellar online reputation (4.9 Google rating) will continue to be important for attracting prospects.
Gross Potential Rent & Economic Occupancy
Gross Potential Rent (GPR) – the total rent if every unit were rented at market rates – declined sharply in December. It was about $119,383 in November and dropped to $93,551 by December 2025. This 22% drop in GPR is notable because it does not come from occupancy loss alone (occupancy fell only ~1 point). The likely causes are: (1) a large number of units were reclassified as unrentable (and thus removed from potential) or (2) significant rate reductions were made for certain unit types. In fact, the operational data confirms that in late December a substantial block of units (an additional ~230 units) became marked “unrentable” (perhaps a new phase of units that are built but not yet rent-ready), which effectively removed their rent from the GPR calculation. Additionally, some rate adjustments were implemented – GPR had been steady at ~$126k in Aug-Sep and ~$119k in Oct-Nov, so the drop to ~$93.6k suggests either temporary promotions or permanent rate cuts on a portion of the inventory. Management should investigate this GPR change: if it’s due to bringing a new building online (unrentable until a future date), this should eventually raise GPR once those units are rentable. If it’s due to rate cuts, we should ensure those are strategic (e.g. discounting large units that were not moving).
Despite the GPR fluctuation, it’s important to look at economic occupancy (the percentage of potential rent actually being realized). In December, actual occupied rent (the rent being paid for occupied units) was about $47,190 per month, against that GPR of $93,551. This yields an economic occupancy of roughly 50.5%. Physical unit occupancy was ~48.8%, so the economic occupancy is only slightly higher – meaning there is very little revenue leakage from concessions or delinquency. Essentially, the tenants in place are paying near market rates on average, and there haven’t been significant rent discounts eroding the income. Earlier in the lease-up (mid-2025), economic occupancy lagged more (e.g. in July actual collections were only ~78% of the potential for occupied units, due to pro-rated move-ins and concessions), but by year-end that gap closed. The Overall Protection % metric hovered around 54–59% in Q4, which aligns with these economic occupancy calculations and indicates a solid capture of potential revenue.
Going forward, as occupancy grows, maintaining a high economic occupancy will require discipline on discounting. The current data suggests concessions are minimal – a positive sign for revenue quality. One area to watch is delinquency: the AR > 30 days past due was about 8% of rent in November (up from ~3% in October). While most tenants are paying, a small uptick in delinquency led to 2 lien notices and 1 unit auction in December (6 lien notices and 2 auctions over the course of 2025). This indicates a few tenants fell seriously behind on payments, but the issue was largely resolved by auction or payment before year-end. Management should continue efforts on collections to keep bad debt low. Overall, the gap between potential and actual revenue is narrow, so the primary way to increase revenue in 2026 is to increase occupancy (rather than squeezing significantly more out of existing occupants, who are already paying close to market rates).
Unit Size Performance
Figure 3: Occupancy percentage by unit size (as of Jan 6, 2026). Smaller units (5x5, 10x5) are near full, while larger units (10x15, 10x20) lag in occupancy.
An analysis of occupancy by unit type reveals a clear trend: smaller units are performing extremely well, whereas larger units have a lot of vacancy. All 5x5 units (25 sq. ft.) are 100% occupied (15 of 15 units) as of early January. The next size up, 10x5 units (50 sq. ft.) are about 80% occupied in aggregate (61 of 76 units) – the ground-floor 10x5s are ~69% filled while the upper-floor 10x5s are ~86% filled. This indicates very high demand for the small storage units.
By contrast, the mid-size and large units have much lower occupancy:
This breakdown suggests that smaller spaces are far more popular in this market, whereas there is a significant supply of large units still unleased. It could be that the larger units’ pricing is not aligned with market demand, or simply that the pool of customers needing very large storage is smaller. Another factor could be location within the facility: generally, ground-floor units are more desirable, yet we see cases like 10x5 where even upper-floor units filled up strongly (perhaps because the small size is in such high demand). Meanwhile, for 10x10 and larger, the ground-floor units do have slightly better occupancy than upper floors (e.g. 10x10 ground ~50% vs upper ~44%, 10x15 ground ~52% vs upper ~45%), indicating some preference for ground level convenience, but overall both floors have plenty of vacancies in those sizes.
Actionable Insights:
Other Key Performance Indicators
Beyond occupancy and revenue, a few additional KPIs are noteworthy:
In conclusion, Premiere Fargo ended 2025 in a solid position for a facility in mid lease-up: about half of the units are occupied, with strong rent collection and very high conversion of interested customers. The key priorities moving into 2026 should be to ramp up marketing to increase lead traffic, and to address the imbalance in unit-type demand (capitalize on the fully occupied small units, and improve the occupancy of larger units through pricing or promotions). By doing so, the property can accelerate its occupancy growth and revenue in the coming months. Overall, the performance indicators suggest a well-managed lease-up with room for strategic adjustments to reach the next level of stabilization.
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