From Vacancy to Value

Published on: 12/09/2023

Strategic Tenant Acquisition: Real-Life Success Stories


Image from Daniel’s Donuts website


Property investment is a dynamic field that requires innovative strategies to maximise returns. One such strategy involves finding high-quality tenants to add value to vacant properties.

In real estate investment, it’s not just the bricks and mortar that define a property’s worth. Tenants play a pivotal in elevating a property’s value.

Strategic tenant acquisition can transform vacant or underperforming properties into thriving assets that generate consistent income and amplify overall value. Here, we delve into two real-life success stories that illustrate the impact of strategic tenant selection on property enhancement and financial growth.


“Daniel’s Donuts and EzyMart demonstrate the spectrum of possibility when a proactive approach drives tenant acquisition. As the real estate landscape continues its evolution, these success stories stand as testament to the potential for innovation and calculated risk-taking to yield substantial rewards”

– Ben Luu, Leasing Executive


Long-Term Vacancy to Long-Term Tenancy: The Daniel’s Donuts Triumph

When Burgess Rawson Leasing executive Ben Luu received the appointment to lease 50 Evans Street Sunbury, he knew a thoughtful and planned approach was required.

Ben’s strategy was two-fold: compile a targeted list of potential tenants and meticulously assess their industry fit, financial stability, and long-term viability. The goal wasn’t just to fill the empty space, but to imagine a transformation that would make the property more valuable overall.

From this calculated list emerged a standout contender – Daniel’s Donuts. Renowned for their exceptional quality and cult-like following, Daniel’s Donuts was the perfect fit. Their strong reputation, financial stability, and commitment to a five-year lease with additional options painted a portrait of a tenant truly invested in the property’s prosperity.

The impact of this strategic decision was swift and profound. In the span of a mere four months, the vacant property morphed from a financial liability into a thriving asset, generating an annual lease income of $60,000. The result; the new lease increased the property value, by an astounding $500,000.


EzyMart Moves in on Prime 7-Eleven Location

Transitioning to another scenario, we journey to 2013, when a 7-Eleven convenience store nestled on Glenferrie Road in Hawthorn sold to our client for $2 million.

We actively managed this property for the next ten years. In September 2022 we commenced early discussion about the expiry of the lease. 7-Eleven advised they would not renew. The challenge was twofold: find a new tenant and then effect a seamless transition between them while minimising income disruption.

Responding promptly to the urgency, the team harnessed their proactive approach to swiftly secure a new tenant. EzyMart emerged as the perfect fit, boasting attributes that aligned seamlessly with the property’s identity and locale.

Relevance: EzyMart’s business model was a natural fit, ensuring a smooth transition for customers and preserving the store’s established identity and clientele.

Innovation: EzyMart’s commitment to innovation resonated with the local demographic, ensuring sustained foot traffic and heightened visibility for the property. The new 10-year lease has locked in over $750,000 of increased property value.

The proactive and strategic approach worked. The tenant transition was executed with impressive efficiency, resulting in a mere 25-day vacancy period. This quick turnaround not only ensured uninterrupted income for the property owner but also spotlighted Burgess Rawson’s expertise in maintaining property value through strategic tenant acquisition.

In the ever-evolving landscape of real estate investment, where market dynamics constantly shift, the stories of Daniel’s Donuts and EzyMart stand as examples for property owners, investors, and industry professionals.

It’s more than just filling a space; it’s about envisioning partnerships that underpin value. By aligning tenant selection with a property’s unique attributes, location, and target demographic, investors underpin value and manage risk.


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