Industrial Buildings leases 4,000 sqm in Beersheva, Ashkelon at $3 per sqm

In a series of deals, Industrial Buildings has leased 4,000 sq.m of industrial space in Beersheva and Ashkelon. The largest deal was with DC Food Industries, which rented 1,400 sq.m. in the Ashkelon industrial zone at $3 per sq.m. per month, index-linked, under a six-year lease. Other deals were in Emek Sarah in Beersheva, also at $3 per sq.m. per month, index-linked.

Industrial Buildings’ rents are calculated according to a multi-year average. The rents are below the average in the first year and above the average in the final year.

As of June 30, the average current yield on industrial buildings’ leases in Israel was a low 6.7%, according to a survey by Anglo-Saxon. The average price of industrial space was $1,075 per sq.m. and the average rent was $6 per sq.m. per month. The average price of industrial space has fallen 15% since March 1999, while rents have dropped 19% and yield has fallen from 7.1% to 6.7%. Anglo-Saxon asserts that no end to the crisis in the sector, which has continued for several years, is in sight, due principally to the large supply of industrial buildings.

Anglo-Saxon lists the following, updated rents for 500-1,000 sq.m. on the ground floor of industrial buildings in several leading towns:

Eliezer Fishman, the controlling shareholder in Industrial Buildings, is the controlling shareholder in “Globes”.

Published by Israel's Business Arena on July 22, 2001