Shaking in Wework? In Israel, it is expanding

Against the backdrop of the global turmoil and the dismissal of thousands of workers, Globes has learned that the company is looking for new areas for expansion in Tel Aviv

WeWork (Photo: Eyal Yitzhar)

WeWork on Dubnov Street in Tel Aviv (Photo: Photo: Eyal Yitzhar, Globes)

A global shake-up at WeWork? In Israel, the company is constantly looking for new areas to expand. Globes has learned that the company is negotiating a seven-storey lease on a new office tower on Yigal Alon Street in Tel Aviv. This is a Suzuki tower located at 82 Yigal Alon Street, near Toyota Tower. The building is currently under construction and is expected to be occupied in the second quarter of next year. Among other things, he is part of a Besser company under the management of Nachshon Kyuyati, and a company of movement equipment - Suzuki importer in Israel, controlled by Zvi Neta, who also serves as the company's chairman. Negotiations that the joint work space giant holds are in front of traffic devices, and is led by Shlomo Meir, who serves as co-CEO of the company.

Globes learned that WeWork wanted to rent seven floors, with each floor area about 1,300 square meters, and a total of about 9,000 square meters. The annual rental cost of the area is estimated at NIS 9.5 million. Both companies asked not to comment on the details.

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The company's attempt to lease land in the Suzuki Tower could indicate the demand that its management identify in the area. Wework has a total area of ​​24,000 square meters in the Toha Tower, not far from the Peace Road, as well as several floors in the Midtown Tower Tel Aviv, located near the Azrieli Towers.

The expansion plans do not end here. Extensive works are currently underway to use a structure that the company leases in the Kiryat Arie industrial area. It is an extensive building that has been abandoned for a long time and is located adjacent to Highway 4. It is expected to open for operations towards the end of 2020. Next year, another company work space is expected to open at the Sapir tower located in the Ramat Gan stock exchange.

The expansion of the company's real estate activity in Israel, if it does materialize, could cause a backlash for many people, in light of the company's global turmoil. Recently, the founder and CEO of the global company Adam Neumann was ousted from his managerial positions by pushing the company's biggest investor in Japan - Softbank. This, while providing extensive $ 1.7 billion compensation to Neumann.

About two weeks ago, the company began laying off thousands of workers around the world, which also shocked Israeli activity. According to the company's announcement, summonses for dismissal were sent to 65 employees of the company's technology headquarters in Israel, operating from Midtown Tower on Menachem Begin Street in Tel Aviv.

An official with whom Globes spoke explained that these are employees who are responsible for the company's technological development activities in Israel, so that their dismissal has no effect on direct real estate activity in Israel.

The company's announcement of the dismissal process states that "this is a matter that seeks to focus on the core work of the company - namely the renting of the territories in the joint work spaces, and therefore it is required to make a dismissal with the aim of creating a leaner and more efficient organization." "The technology team in Israel continues to be an important component of WeWork's global operations, providing solutions to our community experience and business needs. We are grateful to all of our employees who have helped to establish WeWork as a successful global brand, and act with a commitment to respectfully and respectfully. Their role. "