New Dimension Software (now part of US company BMC) last year issued a well organized and detailed tender for the lease of 10,000-12,000 sq.m., with an option for a further 20,000 sq.m. The company, managed by Dan Barnea, mde stringent requirements regarding the quality of construction, specifications of each floor and office, service areas, environmental conditions, parking, management company and so on.
New Dimension received forty offers, from Ra'anana to Rehovot. Three bids reached the final stage, all of them in Tel Aviv: SGS, Zika and Electra Real Estate's planned office block in Ramat Hahayal; Zikit's (controlled by Ocif and Alonei Hetz) planned office block in Ramat Hahayal; and Atidim's office tower in Kiryat Atidim. The three bidders meet the tender requirements, and are willing to construct the buildings according to its terms and schedule.
New Dimension will choose between the three finalists, mainly based on adherence to the tender's specifications.
If the decision were based only on rent, Zikit would have the advantage, with a price of $16.5 per sq.m. a month. However, the choice will mainly be made according to the tender specifications. A decision will be made within a month. It is already clear that New Dimension, unlike other high-tech companies, will remain in Tel Aviv.
Published by Israel's Business Arena on January 16, 2000