Social media platform company LinkedIn has leased an entire floor, covering 1,400 square meters, in the Alon Tower B in Tel Aviv, "Globes" has learned. The company is believed to be paying NIS 160 per square meter. The space is in the 34th floor of the tower, and occupation is scheduled for July 2024. LinkedIn has about 50 employees in Israel.
The Alon Towers, A and B, located on Yigal Alon Street, each have 40 floors and are 163 meters high, with six underground parking levels and thirteen elevators in each tower. In 2010, the land on which the towers stand was sold to BSR Group. Tower A, the more northerly of the two towers, was bought by insurance companies Migdal and Harel, while Tower B was bought by a group of private investors.
"The Alon Towers are on a street that has been undergoing accelerated renewal and is now one of the most sought after in the city," says Osher Osi, a commercial real estate specialist in Tel Aviv and the surrounding area. "Since the peak in 2021, we have been undergoing a slowdown in the number of deals in the sector, and so the move by LinkedIn to the Alon Towers, the size of the deal and the price, are a little unusual, particularly in such a period of uncertainty.
"This is also encouraging news. As I have said in the past, we are not seeing at the moment, and in my opinion we won’t see, ghost offices, but we also won’t experience a rush on office space such as happened here in 2021, certainly not in the near future. You can see that the market is moderating, and the price per meter in the LinkedIn deal demonstrates this: there’s no plunge in prices, but a reasonable correction of the 2021 prices, to the level before the big rise."
LinkedIn came into Israel last year when it bought local web analytics startup Oribi, founded by Iris Shoor, for $100 million. Oribi provides an analytics platform for management of paid campaigns on LinkedIn, and serves as LinkedIn’s Israeli development center. According to information obtained by "Globes", the leasing of the floor in Alon Tower B represents further expansion of LinkedIn in Israel, and is not directly connected to Oribi itself.
Published by Globes, Israel business news - en.globes.co.il - on June 20, 2023.
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