Commercial real estate in Israel
When covering the growing market of Commercial Real estate in Israel, we are mainly cover the Israel’s Hitech and bio-tech industries that is growing and expanding every year.
Israel, despite the fact that it is a small country with less than 8 million people, has more than 3,500 start-ups that have been established and operating in Israel.
Israel is second only to the US Silicon Valley in the hi-tech sector, and has the largest number of NASDAQ-listed companies outside North America
Israel is consider to be the leading of the world’s high tech development country, Israeli hi-tech companies excel in computer technologies, semiconductors and communications.
Israeli Hi-tech industry
Check Point, (the leading international firewall firm),
Amdocs, (which developed business and operations systems for telecoms companies),
Comverse, (a leading Israeli based voice-mail company),
Mercury Interactive, and more. More the that - Significant international companies' facilities and research and development centers are based in Israel, in order to benefit the hi-tech manpower and wisdom, international companies such as:
Microsoft (that built their first overseas research and development centers in Israel), IBM, Cisco Systems, and Motorola, and others.
Central Israel – Key Office Markets:
Total Israeli office market estimated at 3 Million SqM. estimated 60% in greater Tel Aviv area.
The Israeli Commercial REAL ESTATE Characterized by:
- A shortage of large spaces, (1,500 SqM. and more) in 2016 in: Tel Aviv, Ramat Gan, and Herzliya
- There is an expectation for rental space flooding at the end of 2016 and 2017
- Vacancy 0f 10% in Tel Aviv, Ramat Gan and Herzliya, (more than other areas in Israel)
- Steady rent fees for the past 3 years in Tel Aviv, Ramat Gan, and Herzliya
Tlv’s closest neighbor:
RAMAT-GAN is TLV’s Closest Neighbor, and benefit for that in many ways:
- Best location being in a Central location, easily accessible and a major business center (Financial, legal firms and some government offices)
- RAMAT-GAN Offices of IT companies, industrial companies, various service providers
- Tens of thousands of employees and thousands of visitors daily
- Minutes away from the nearest railway station and bus terminal, accessible directly via pedestrian bridge to Tel Aviv
- Underground parking under the towers in the district
- Many Banks, Insurance companies and other financial companies headquartered there, Less Hi-Tech companies
- Currently no available space bigger than 1,500 SqM.
- During 2016 another 50,000 SqM project will be ready to start occupying.
- Major current buildings: Tidhar Rogovin, Moshe Aviv, and Gibor Sport.
The Central of Israel Hi-Tech Hub:
HERZLIYA, is consider to be the senior hi-tech hub in Israel is re-developed the Industrial area, in order to keep the leading title of Israel’s “Silicon Valley”.
Large number of international IT companies, such as: Microsoft, Apple, Verint, Broadcom, EMC, CA and others has their Israeli’s based in HERZLIYA
HERZLIYA Hitech industries zone has Hundreds of thousands of office space SqM.
Currently around 15,000 SqM are available.
Multiple construction projects to be finished and provide additional office space, this year and following years.
Main projects like: Vitania Fedco, O2, Dan, Acro Pangaea, and upcoming real-estate projects to yield tens of thousands more office space
The Assets’ priced in HERZLIYA is lower than TLV yet enjoy the same benefits as TLV-based assets
HERZLIYA Central location, Benefit from easily accessible with Railway transportation, “Ayalon” freeway (road number 20), and Road number 2
HERZLIYA industrial zone has a Variety of large restaurants and food courts.
HERZELIAI’s Closest Neighbor:
Re-developed Industrial area, Considered as Israel’s “Silicon Valley”
Large number of international IT companies, such as:
Nice, SAP, Microsoft, NCR, TI, Amdocs.
- Hundreds of thousands of office space SqM.
- Currently no available space bigger than 1,200 SqM.
- During 2015, 41,000 SqM are to be released in some projects.
- 2015-2016 – multiple construction projects to be finished and provide additional office space, main projects: Hi – Tech Park Tidhar, The new SAP building.
- Upcoming real-estate projects to yield tens of thousands more office space
- Assets priced significantly lower than TLV yet enjoy the same benefits as TLV-based assets
- Central location, easily accessible: Road number 4, and “Ayalon” freeway in the near future.
- Variety of large restaurants and food courts