Commercial rents fall 20% in Tel Aviv

Czemanski Ben Shahar: There was 200,000 square meters of empty office space at the end of August

Office rent and building occupancy rates have fallen in Tel Aviv in 2009. A new survey by consultancy firm Czemanski Ben Shahar & Co., o the basis of an actual census of office space, found that the average office rent in Tel Aviv has fallen by 20% so far this year, and that there was 200,000 square meters of empty office space at the end of August.

Czemanski Ben Shahar says that office rent in Tel Aviv has been falling steadily since the end of 2008. Rent has dropped from NIS 75-115 per square meter per month to NIS 60-100 per square meter per month. “In the short term (within 3-4 years), as the economy emerges from recession, in the same process as during the previous recession, there is a surplus of space to be occupied, and prices will return to the level of 2008, on the assumption that no new space will be built to what is already on the market.”

Office occupancy rate in Tel Aviv was near 100% in 2008, but is now about 90%.

Czemanski Ben Shahar says that current planning will provide sufficient office space to meet demand in Tel Aviv for the next 40 years. It adds that there are 370,000 people employed in the city, more than 15% of Israel’s total labor force.

Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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