A vertical transportation lift system in a low-rise building with three or four floors such as shopping mall has a unique characteristic where the passenger traffic is circulatory. The impact of this circulatory passenger traffic on passenger service is studied through simulation model of lift system embedded with four proactive operating strategies. The capacity of lift, the number of lifts available, and the passenger traffic level are varied in simulation experimentation to empirically and statistically analyze the impact of operating strategies on passenger waiting times and transit times. It is observed that just having the required pooled capacity for a given passenger traffic level is only a necessary condition but sufficient conditions are met by defining both the number of lifts and their capacity. It is also observed that operating strategies and passenger traffic level have an impact on passenger transit times. A prediction model derived from simulation output helps in forecasting passenger service for a given system configuration. The developed approach has potential for real world application for new lift system design and improving existing lift system operations.