The Bank of Jerusalem also estimates demand for office space at 280,000 sq.m. per year through 2010.
There is 270,000 sq.m. of empty office space in Tel Aviv, Ramat Gan, and Givatayim, according to a Bank of Jerusalem survey. The space includes 100,000 sq.m. of high-quality, 70,000 sq.m. of medium-quality, and 100,000 sq.m. of low-quality space. The survey did not include empty space in the Azrieli Towers, about which there are no precise figures. Bank of Jerusalem deputy managing director and manager of Business Division Yaakov Sisso presented the figures at the bank’s conference on real estate last Thursday.
The survey stated there is currently 9.2 million sq.m. of office space in Israel, and 11.5 million sq.m. will be needed by 2010, i.e. an average demand of 280,000 sq.m. a year. The oversupply is greater for leasing than in sales.
Sisso said office rents have fallen 25-50% nationwide in the past two years, and sale prices 10-30%. Sale prices of buildings owned by stronger companies with greater stamina have declined only slightly. In contrast, prices for older and cheaper buildings, for which there is little demand, have plummeted.
Published by Globes [online] - www.globes.co.il - on February 23, 2003