The market for commercial leases in Ramat Hasharon, formerly one of the most expensive cities in Israel, is suffering a depression. Rents on the main street, Sokolov, which formerly achieved record highs for Israel, have been reduced by an average of 40% (and more in some cases). The majority of leases were concluded at approximately $40 per sq.m. per month. The following agreements were transacted recently:
38 Sokolov - three stores of 25 sq.m. were recently leased, two of them to boutiques, at $1,000 or $40 per sq.m. per month. The previous tenants paid $1,700 or $68 per sq.m. per month.
64 Sokolov - A 40 sq.m. store in a central location with a 10 sq.m. storage room was just leased to a boutique at $55 per sq.m. (including the storage area). This store has been leased for $4,000, i.e. almost $100 per sq.m. per month.
61 Ussishkin (a commercial side-street) - A 35 sq.m. store was leased for $28 per sq. meter per month. The store had been leased previously by a flower shop for $37 per sq.m. Another store on the street, of 30 sq.m., was also leased for $28 per sq. meter per month, the previous tenant having paid $37 per sq.m.
Yosef Tzarfati, manager of Anglo-Saxon - Ramat Hasharon, told "Globes" that most new leases are signed for a period of a year, with an option for extension. Commercial activity in the town has diminished. Tenants are usually willing to sign for only one year; and are unwilling to commit for longer periods. Tzarfati stated that there are available stores, even on the main street, Sokolov, and that lessors wishing to lease their property must settle for much lower rents.
Published by Israel's Business Arena on 10 October, 1999