Tel Aviv’s skyline is rapidly changing as new office towers go up one after another. The Beyond, Toha 2, Hasolelim, and Spiral towers are just some of the projects that are creating a new cityscape in the business district along the Ayalon Highway, while new towers are also under construction in the Diamond Exchange area of Ramat Gan and in other cities.
Many of these projects are now reaching the occupancy stage, and several companies have recently moved home. The tenants are attracted to an advanced work environment, ancillary services, and accessible public transport, but the moves leave behind vacant space in the buildings they occupied formerly, raising the question of who will come in in their stead.
An example is the start of occupancy of the Beyond Tower owned by Tidhar (TASE: TDHR), George Horesh’s Union Company, and KKL-JNF subsidiary Himnuta. The first tenant is Meitar, the largest law firm in Israel, which is leasing 30,000 square meters on seventeen floors in the tower. The firm is moving from Aurec House on Abba Hillel Silver Boulevard in Ramat Gan. Meitar was a main tenant in that building, and no replacement tenant has yet been found.
Another substantial tenant in the Beyond Tower is mobile games company Moon Active, which will lease 22,000 square meters on eleven floors for ten years. The company currently rents 26,000 square meters in the Vitania Tower in Tel Aviv. It is due to move to its new premises at the end of 2027. Again, no replacement tenant has yet been found for its existing offices.
The law firm of Lipa Meir & Co. is also moving to the Beyond Tower. It has leased 7,000 square meters on four floors for 24.5 years, and is leaving 4,000 square meters in Amot Investments House on Weizman Street in Tel Aviv.
Technology giant Google has leased 60,000 square meters in Amot and Bayside’s Toha 2 tower on Yigal Alon Street, and will vacate nine floors in nearby AMPA House. Sources in the sector say that the space that Google is leaving could be used for expansion by two existing tenants in AMPA House: law firms Agmon with Tulchinsky, and Goldfarb Gross Seligman. It is not yet clear whether these two firms will be able to take over all of the vacated space.
Not far from there, opposite the Toha site, is the Hasolelim project of Mivne (75%) and Tidhar (25%). Last week, cybersecurity company Armis moved into the project, and blockchain security company Fireblocks is due to join it. They will vacate offices in the Acro Tower on Yitzhak Sadeh Street. Through Fattal Holdings’ Switchup property management company, the two companies have leased 8,000 square meters and 13,000 square meters respectively. According to industry sources, four other cybersecurity companies will replace them in the Acro Tower.
Avison Young Israel CEO Guy Amosi describes the situation as "a game of musical chairs in the Tel Aviv office market."
"It looks as though we shall see a split of the office market into two," he says. "On the one hand, new towers are attracting and will attract strong companies. On the other hand, any transition like this creates a ‘hole’ in an old building, and in the coming years the challenge will be not so much to lease out the new ones as to refill the previous generation."
Not just in Tel Aviv
The trend is not restricted to Tel Aviv. An outstanding example is Mizrahi Tefahot Bank, which left the Moshe Aviv Tower in Ramat Gan, where it leased 12,700 square meters on eight floors, and moved to a new headquarters that it built in Lod. According to its second quarter financials, Sella Real Estate, which owns the Ramat Gan building, has not yet found a replacement tenant, and the occupancy rate in the tower will fall to 50% in 2027 because of the bank’s departure.
Another example is the Airport City site, where technology company Audiocodes has left its offices in favor of Park Naimi at Mesubim Junction. The move was completed in the spring of 2024, but the 17,000 square meters that the company vacated in Airport City remain empty. Many further such examples can be found in other cities and office zones in central Israel.
Zachi Agassi, founder of 770 TLV Offices agrees with Amosi that the office market is bifurcating, and says, "Buildings in strong locations will continue to enjoy demand, but space that is vacated will have to compete anew for tenants."
Aurec House, he says, is a good example. "Meitar is leaving behind high-quality space at an accessible location, but it is partly designed for a law firm. A technology company regards offices differently: people in close proximity to one another, common areas, meeting rooms, team areas, and flexibility for future changes. The question is therefore how far the product being vacated suits the next generation of tenants."
According to figures from Colliers International Israel, the office market will also have to cope with additional space that will become available in the coming years. In the next five years, 1.64 million square meters will be added in Tel Aviv, 681,000 square meters in Petah Tikva, 455,000 square meters in Herzliya, and 350,000 square meters in Bnei Brak. In Jerusalem, in the Har Hotzvim industrial zone, between 350,000 and 500,000 square meters of new office space will be added.
Published by Globes, Israel business news - en.globes.co.il - on October 13, 2026.
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