Also in the field of offices: Real estate is skyrocketing. In which city will you no longer find vacant offices?

CBRE Israel's market research on the office and trade industry in the fourth quarter of 2021, states that office rents in Tel Aviv increased by 13% this quarter to a record price of NIS 122 per square meter. Total annual increase - about 28 percent

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Real Estate

10/01/2022

Monday, 10 January 2022, 08:45

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CBRE Israel's market research on the office and trade industry in the fourth quarter of 2021, shows that office rents in Tel Aviv increased by 13% this quarter to a record price of NIS 122 per square meter. The total increase in office rents in Tel Aviv in 2021 is approx. 28%.

Also in Ramat Gan the prices are high. The rent increased by 5% to 86 NIS per square meter.

In Herzliya, rents rose by 6% to NIS 88 per square meter, in Netanya by 4% to NIS 47 per square meter.

In Raanana and Petah Tikva, rents did not increase in the fourth quarter.

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This area is also starting to get crowded.

Offices in Tel Aviv (Photo: Reuven Castro)

The office is almost full in Tel Aviv and Ramat Gan (97%), in Herzliya it stands at 94%.

In Raanana, Jerusalem, Haifa and Rehovot, occupancy is 87-89%.

The great demand for offices is causing a rise in demand in the joint work spaces industry in Tel Aviv, Herzliya and the peripheral localities.

The optimism regarding the future of the industry is reflected in the areas of construction starts in the first three quarters of the year, compared to the area of ​​completion of construction in that period - a gap of over 44% in 2020 and 2021.

Yaron Shachar, Director of Investment and Research at CBRE Israel: "In the 4th quarter of 2021, there was a decrease in the rates of returns in the field of offices. NIS) in the financial statements of the income-producing real estate companies.

Rents and occupancy rates by city (Photo: PR)

"In the field of commerce in this quarter, there was stability in both the occupancy rate and rents. This is the industry that has experienced the most severe damage in the past year, with an emphasis on malls. The malls that burdened tenants, such as Fox, Castro and Brill, and some of them converted physical shopping into online shopping, while a significant portion of Israeli citizens converted their vacations and purchases abroad into shopping in Israel.

In fact, over the course of a year, this industry has not yet recovered - rents in most cities have now returned to their level from a year ago. "

Average occupancy by cities (Photo: Yachz)

Prominent deals in the fourth quarter

• Amot Investments Group, controlled by the Aloni Hetz Group, has completed the acquisition of the logistics park in Tzrifin from the Jewish Agency Employees' Benefit and Pension Fund Management Company - the investment is NIS 1.52 billion.

• Delta and the Caesarea Properties Company will establish a 17-dunam Marlog in the area at a cost of NIS 200 million.

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