Office rent rose slightly in the past six months, but are still below 2008 levels, according to a study by Geocartography Knowledge, run by CEO Dr. Rina Dagani.
The weighted average office rent in 18 large cities is NIS 70 per square meter, which Dagani said was less than the average of NIS 80 per square meter in 2008. The current figure, however, is higher than the average of NIS 67 per square meter in the first half of 2009.
Office rent in several cities rose from the fourth quarter of 2009 to the first quarter of 2010: average office rent per square meter in Tel Aviv rose 4.4% from NIS 68 to NIS 71; it rose 7% in Rishon LeZion from NIS 57 to NIS 61; and it rose 7% in Petah Tikva from NIS 54 to NIS 58.
Office rent in Jerusalem is falling from the levels reached in recent years mainly because of no new supply. Average office rent in the capital fell 2.3% from NIS 85 per square meter in the fourth quarter of last year to NIS 83 per square meter in the first quarter.
Geocartography says that 40% of office space available for rent in Jerusalem and 30% of the available office space in Tel Aviv and Ramat Gan is being offered at more than NIS 80 per square meter.
Published by Globes [online], Israel business news - www.globes-online.com - on May 10, 2010
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