Wix cuts asking price for Glilot campus sub-leasing

Wix campus  credit: Eyal Izhar
Wix campus credit: Eyal Izhar

Wix offered 7,000 square meters of its new campus, and has cut the rent it is asking for the remaining space by about 10%.

Website building platform Wix.com (Nasdaq: WIX), which seeks to rent out 7,000 square meters of its new campus at Glilot, close to the border between Tel Aviv and Herzliya, is still looking for tenants for some of the space, which comprises both commercial and office space. Sources inform "Globes" that the rent that Wix is asking has fallen since the space was first advertised.

At that time, Wix offered office space at NIS 150 monthly per square meter and commercial space at NIS 220. The spaces can be leased whole or in small units of a few hundred square meters each. The remaining space is now being offered at rents 10% or more below the original asking price. Office space is offered at NIS 130 monthly per square meter, and commercial space at NIS 200.

Wix is reportedly currently paying NIS 90 monthly per square meter for office space on the campus. This, however, is the price for renting at the shell level, and does not include the company’s investment in finishing and outfitting work. The space that Wix is offering for sub-leasing is fully finished, hence the higher rents.

Wix is offering the office space on leases of two to four years duration, and the commercial space on longer leases. It is thus preserving flexibility for itself, should it wish to expand and occupy additional space on the campus in the future.

Wix officially took possession of its Glilot campus in October 2022, that is, almost a year ago, and occupies half of it. The second stage of occupation is due to take place next year. The campus consists of 60,000 square meters of space, and the lease from the developer, Israel-Canada, is for ten years, with three extension options.

The campus is situated in north Tel Aviv, close to the Glilot interchange between Road 2, the coast road, and Road 5. At present, access to it is problematic, as it is a long way from convenient and frequent public transport. The easiest access is by private vehicle. This could be one reason that Wix has experienced difficulty in finding sub-tenants.

In the future, a station of the light rail Green Line, due to open in 2028, will be close to the campus, making the whole area much more accessible.

No response has been received from Wix.

Published by Globes, Israel business news - en.globes.co.il - on September 13, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Wix campus  credit: Eyal Izhar
Wix campus credit: Eyal Izhar
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