Only the luxury offices are being leased for $18-$19 per sq.m., a substantial reduction compared to the past.
In recent weeks, rent for second-hand offices in Tel Aviv have plunged to $10 per sq.m. per month, index-linked, according to the agency, Real Estate Forum, owned by Oded Zidon. Only the new luxury offices are being rented at $18-$19 per sq.m., which is a substantial reduction, compared to the past. In most cases, the rent is not increased when options to extend are exercised. Here is a list of Real Estate Forum deals, which demonstrate the position of the market:
- North Tel Aviv: Feldman Advertising Agency rented 100 sq.m. at 2 Nahum Hanavi Street for $10 per sq.m. per month, in a two-year contract plus a two year option. The owners asked $12 per sq.m. Bik Electronics rented 90 sq.m. at 182 Ben Yehuda Street for $10 per sq.m. in a three-year contract with another two years, after the owners asked $12.5 per sq.m.
- Hayarkon Street: A non-profit organization for immigrant absorption rented 107 sq.m. at 169 Hayarkon Street (Kikar Atarim) for $10 per sq.m., after the owners asked $13 per sq.m. Architect Nava Brown rented offices at 94 Hayarkon Street for $10.8 per sq.m., in a four-year contract, plus a two year option, after the owners asked $13 per sq.m.
- Derech Hashalom: Premier Real Estate Agents and Investments, owned by Eli Museri and Aharon Batash, rented from Comex Computers 70 sq.m. for $10 per sq.m. Comex asked $12 per sq.m.
As reported in this column a week ago, the Continental airline has rented 800 sq.m. in Trade Tower from Advs. Yehoshua Rosensweig and Ravital Aviram, through Man Real Estate. Continental says it will pay $18.5 per sq.m. per month, compared with $20-$22 per sq.m. which until very recently was the accepted price in the area.
In another deal, also reported in this column, the Insurance Agents Association rented from Edgar 550 sq.m. in a relatively new building at 18 Hamazger Street for $10 per sq.m. per month. The real price is lower, as this includes free parking and renovations paid for by the owners.
Published by Israel's Business Arena May 23, 1999