In Tel Aviv, prices fell by 6%, in Ramat Gan by 4%, and in Raanana - they fell by 11% • The reason - the corona plague • Chairman of CBRE Israel: "The decline is expected to continue"
"After five years of immigration, the trend has been reversed."
Office tower under construction
Photography:
Coco
Since the beginning of the crisis caused by the corona virus, office rental prices have fallen by about 4% to 11%, while rents in commercial areas have fallen by about 5% to 13%.
This emerges from a study by CBRE Israel on the subject of the office and trade industry in the third quarter of 2020.
Rental prices for offices in Ramat Gan in the first three quarters of 2020 fell by 4% to a price of NIS 79 per square meter per month, and commercial rents fell by 11% to NIS 125 per square meter.
The average occupancy rate for offices was 91% and the average occupancy rate for commerce was 88%.
In Tel Aviv, rental prices for offices fell by 6% to NIS 96 per square meter and by 13% to commerce, to NIS 170 per square meter.
Occupancy for offices in Tel Aviv was 93% and occupancy for commerce was 90%.
In Jerusalem, there was a 3% decrease in the rental price of the offices, to NIS 65 per square meter. In the field of trade, there was no change in prices, and the rent was NIS 94 per square meter on average.
Office occupancy was 88% and commercial occupancy was 89%.
Rental prices for offices fell in Raanana by 11% to NIS 54 per square meter, and in commercial areas prices fell by 6% to NIS 90 per square meter.
The average occupancy for offices was 88% and the average occupancy was 91%.
In Herzliya, rental prices for offices fell by 9% to NIS 78 per square meter and rental prices for commerce by 5% to NIS 142 per square meter.
The two cities that were not affected by the decline in rental prices for offices and commerce are Haifa and Lod.
The rental prices of the offices in Haifa were NIS 65 per square meter with an occupancy of 88%. The rental prices for offices in Lod were NIS 44 per square meter with an occupancy of 85% and the rental prices for commerce were NIS 68 per square meter with an occupancy of 85%. The reason these gates were not affected is a shortage of office and commercial space in these cities.
"The upward trend is over"
Jackie Mukamel, Chairman of CBRE Israel, says that "After more than 5 years of rental prices in offices, there has been a steady upward trend, in the third quarter of 2020 the downward trend in prices continues as a result of the Corona epidemic.
"In the fourth quarter, the decrease in office rents is expected to continue, due to a decrease in demand, vacant office space and the transfer of many employees to work from home."
