Israeli law firm Fischer (FBC) is leaving the Azrieli Town project and has signed a leasing agreement with Tidhar Group, Union Group and Himanuta for 14,400 square meters of space on eight floors in the Beyond Towers project in Givatayim. The agreement includes an option to increase the amount of space leased by several thousand square meters.
The towers, currently under construction by the Ayalon Highway's Arlozorov Interchange, are about 300 meters from the law firm's current offices in Tel Aviv's Azrieli Town project. "Globes" estimates that FBC will be paying rent of about NIS 80-90 per square meter per month for a total monthly rent of NIS 1.15 million or NIS 13.8 million per year.
FBC is expected to move to the new offices in 2027, when construction is completed. When completed the Beyond project, on the border of Tel Aviv and Givatayim, will comprise 300,000 square meters of space in two towers of 54 and 78 floors. The 54-floor tower will include 500 small micro-living apartments for rent. The 78-floor tower will have 130,000 square meters of office space as well as commercial, and entertainment facilities.
Since 2021, FBC has leased seven floors comprising 10,000 square meters in Azrieli Town as well as 150 parking spaces. In other words, FBC will be leaving for Beyond after 6-7 years.
FBC is ranked as one of Israel's five largest and leading law firms. The firm has been consistently growing in recent years requiring it to increase the office space it leases. The move is probably because FBC requires more space, which is not available in Azrieli Town. FBC is working with Azrieli Group (TASE: AZRG) to find tenants to replace it.
Contracts with other law firms
The Beyond Towers project has already reportedly signed major leases with other large law firms including a lease for 30,000 square meters and 17 floors to Meitar, and 7,000 square meters and four floors to Lipa Meir.
According to Azrieli Group's financial results for the second quarter of 2023, the group's overall occupancy for its office space in Israel is 98% on average. According to sources familiar with the market, FBC was among the first tenants of Azrieli Midtown, with a relatively low leasing agreement of NIS 60-70 per square meter per month, and therefore its departure opens up an option to raise the rent in the vacated space.
Published by Globes, Israel business news - en.globes.co.il - on September 18, 2023.
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