TA Municipality unveils plans for Carlebach Street

Tel Aviv Carlebach Street complex credit: Eyal Izhar
Tel Aviv Carlebach Street complex credit: Eyal Izhar

The initial design includes four buildings facing Carlebach Street, 9-15 floors high and with a commercial ground floor, and behind them several more 30-floor towers.

Tel Aviv Municipality has unveiled interesting plans for Carlebach Street near the TLV Mall and the former Tel Aviv wholesale market. The municipality recently published a guide for existing tenants in the Carlebach lot in the city center, in which it offers two proposals - extending the lease, which ends this August, and joining the "Lot Development Operation" that will grant rights in most of the area.

This is a 26-dunam (6.5 acre) lot, along Carlebach Street and west of it, where several existing buildings, including the Capital Markets Tower, the Chamber of Commerce building, and more, are located. There are 150 tenants to whom the municipality leases the buildings. The current lease contract ends in August 2025, and the municipality is now approaching the tenants with a proposal to renew the lease for another 49 years - and is taking advantage of that opportunity to promote the renewal of the lot and forming a new city building plan, which will allow construction of office and residential towers in place of some of the existing buildings.

Up to NIS 30,950 per square meter

The guide published by the municipality for the lot divides the existing buildings into two: four "buildings" (each building includes several connected buildings with separate entrances), designated for demolition, as part of the new plan; and two buildings - the Capital Markets Tower and the Chamber of Commerce building that will not be demolished but will undergo renovation. As for the buildings slated for demolition, the municipality is proposing payment of lease fees every seven years, assuming that in seven years from today, the new plan will be approved and building permits can be issued.

Rents will increase

The rents that tenants will be required to pay will differ depending on the building, the floor and whether the building is for demolition or renovation. The amounts vary, and the ranges of equivalents per square meter set by the municipality are quite wide - starting from NIS 9,900 per square meter per month in the basements of the Capital Markets Tower, and up to NIS 30,950 per square meter for the commercial spaces in the Chamber of Commerce building facing Carlebach Street.

For example typical rents that tenants in the Chamber of Commerce building will be required to pay: a standard office floor in the building occupies an area of 849.95 square meters, and each square meter is priced at NIS 17,150. A tenant of an entire floor in the building will have to pay about NIS 7.9 million for renewal of the lease, and another NIS 114.8 million in rents for the entire additional lease period - the next 49 years. Thus, on average, that tenant will have to pay about NIS 3.1 million per year.

The initial design includes four buildings facing Carlebach Street, 9-15 floors high and with a commercial ground floor, and behind them several more 30-floor towers.

The challenge: 90% agreement

The challenge for the tenants is a high threshold set by the municipality in order to join the operation: if the tenants in each building fail to achieve at least 90% agreement from among all the tenants in that building, they will not be able to join the operation, and worse, their lease will be canceled and they will be evicted from the building.

Tel Aviv Municipality said, "The municipality is not obligated to renew the leases. The requirement for the consent of at least 90% of the tenants is a serious factor, in accordance with which the municipality is prepared to renew the contracts on the condition that each tenant joins the renewal, which will also allow the future planning trends to be realized in the future.

"A 90% agreement allows the municipality not to discriminate between different tenants; between those who join and those who have not yet decided. In addition, the municipality wants certainty regarding a full renewal and not just with some of the tenants."

Published by Globes, Israel business news - en.globes.co.il - on January 19, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.

Tel Aviv Carlebach Street complex credit: Eyal Izhar
Tel Aviv Carlebach Street complex credit: Eyal Izhar
Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

APM merges with lawyers from Doron, Tikotzky Kantor, Gutman credit: Eyal Merilos APM merges with 12 lawyers from Doron, Tikotzky Kantor, Gutman

With the addition of these 12 lawyers, Amit Pollak Matalon & Co. will now have 135 lawyers.

US President Donald Trump credit: Reuters Sipa USA Israel on list as Trump unveils tariffs

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

Deflated unicorn credit: Shutterstock Big Tech 50 reports more huge falls in startup valuations

Israeli R&D partnership Big Tech 50 reports that an investment of $2 million in Orcam made in 2021, shrank to just $31,000 at the end of 2024.

NextFerm technologies based on yeast credit: NextFerm Food-tech co NextFerm suspends operations

The company, which produces food ingredients in yeast without genetic engineering, cannot pay its debts and is seeking a buyer.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef OECD sees recovery in growth but high inflation

The OECD Israel Economic Survey 2025 recommends that the Israeli government take several restraining measures, in order to exit the economic storm created by the war.

Dano Ben-Hur credit: Dror Sithakol Statisticians contradict BoI on impact of housing finance deals

The Central Bureau of Statistics insists the impact of 20/80 buy now pay later financing deals on the real estate market and housing prices is minimal.

Governor of the Bank of Israel Amir Yaron  credit: Government Press Office Debt fears top Bank of Israel's concerns

Most unusually, Governor of the Bank of Israel Amir Yaron's press conference last week did not focus on inflation and the impending interest rate decision.

US President Donald Trump  credit: Reuters/Leah Millis Israel moves to avoid Trump's tariffs axe

Minister of Finance Bezalel Smotrich has signed an order canceling all tariffs on imports from the US. The impact will mostly be on agricultural produce.

Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018