The Government Office Administration (GOA) is negotiating the rental of an 18 floor tower from Yosef Moshkovitz and the Kahtan brothers. The tower has 20,000 sq. m. At the same time, the GOA is negotiating with David Azrieli for the same amount of space in the Shalom Center’s triangle tower. These are the two main offers submitted to the administration in the tender issued for 20,000 sq. m. in Tel Aviv.
Assessments are that the GOA will pay $20 per sq. m per month to Moshkovitz. In that case, Moshkovitz would have an easy time finding a buyer for the tower as a yield bearing investment.
Azrieli has offered the GOA the space not rented by Bezeq. Azrieli is asking the same rental fee - $19 per sq. m per month. Contracts in both projects are index-linked for ten years.
The GOA needs the space primarily for the Ministry of Education, now located in Hadar-Dafna House on King Saul Boulevard. The rest of the space is slated for the offices of the Custodian General, VAT (now in Givatayim), Purchase Tax, and possibly the Tel Aviv offices of the Ministry of Housing. The GOA might lease space in several buildings in order to obtain the best possible conditions.
At the same time, the GOA hopes to receive occupancy of the Histadrut Executive Office (Va’ad Hapoel) Building on Arlozorov Street in Tel Aviv. In the past, the GOA agreed to rent the 11,000 sq. m building at $16.5 per sq. m per month, index linked. However, the Histadrut is having difficulty vacating the building. The space is slated for the Israel Land Administration and parts of the Employment Service and Handicapped Rehabilitation Office.