Fattal Group share workspace unit Rooms will operate a large shared workspace site in H-Tower Recital at 156 Menachem Begin Street in Tel Aviv.
Sources inform "Globes" that Rooms has rented floors 7-11, in which it plans to rent out 920 workstations. The rented space totals 6.500 square meters. The 20-year lease was signed with the owner of the building - a company controlled by businessman Avraham Levy. According to the lease, Rooms will pay NIS 135 million in rent over the 20-year period. The site is scheduled to open for business in mid-2020.
Rooms currently operates another shared workspace site at 46 Menachem Begin Street in Tel Aviv as part of the NYX Hotel. The company website states that it plans to open a third shared workspace site on the same street in the We Tower being built at 150 Menachem Begin Street. According to the website, Rooms plans to establish a number of other work sites in the coming years in Ra'anana (460 workspaces), the Hachsharat Hayishuv Tower in Bnei Brak (744 workspaces), and the Basel Park Tower in Petah Tikva (469 workspaces).
"The shared workspace solution is suitable for everyone from individuals to large companies, for example a beginning entrepreneur with few resources. At a flexible price starting at NIS 1,200, a person can rent a workstation for a month, which will provides a place to sit, work, and hold meetings," Rooms CEO Nadav Fattal told "Globes."
A study conducted by economic consultant firm Czamanski & Ben Shahar found that Israel currently had 400,000 square meters of shared workspaces, 1.5% of all the office space in Israel, with 80,000 people working in these spaces. The study also found that 82 shared workspaces sites, a large majority of those in Israel, were concentrated in Tel Aviv.
According to the Spacenter website, there is a major concentration of shared workspaces in the vicinity of Tel Aviv's Hashalom railway station and the Azrieli Center, with the sites there competing for users. Regus operates a site in the Sarona area. The Sarona Labs site is located at 121 Menachem Begin Street in the Azrieli Sarona tower. WeWork has two sites: at 144 Menachem Begin Street in the Midtown Tel Aviv Tower and in the ToHa Tower on Hashalom Road. BeAll operates spaces in both the Allon Towers on Yigal Allon Street and in the Shahar Tower overlooking the boundary between Givatayim and Ramat Gan.
"Globes": Are you concerned about the abundance of workspaces in the area of the Recital Tower?
Nadav Fattal: "There are a number of sites in Tel Aviv and in the area, and we believe that demand for shared workspace sites will mount. Shared workspaces currently account for only 2% of total office space. That's a small proportion. It has been forecast that this proportion will rise to 30% by 2030."
Published by Globes, Israel business news - en.globes.co.il - on December 19, 2019
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