Al-Aqsa flooding adds to crisis of empty business towers in Tel Aviv

The Israeli newspaper “Globes” said that the office towers that were thriving in Tel Aviv and Ramat Gan are now bearing the burden of the growing crisis.

An investigative report conducted by the newspaper shows that prestigious office space, previously in high demand, is now deserted with thousands of empty square meters, and the newspaper indicates that what is more worrying is that currently Approximately 500,000 additional square meters are vacant. under construction.

The report notes that two years ago, these towers were enjoying full occupancy rates, as companies were barely able to secure space in them. But now, entire floors of major towers like Azrieli Center and Yigal Elon Street are deserted, indicating a major downturn in the market.

A report by the Geocartography Research Center shows that approximately 80,000 square meters of office space in Tel Aviv and Ramat Gan is still vacant. While Jackie Mockmel, former CEO of CBRA Israel, estimates that the real number is at least five times higher, reaching 1.7 million square meters between Netanya and Holon and about a quarter of the towers of Tel Aviv.

Foreign companies investing in real estate, insurance and retirement funds withdraw their investments from Israel.
Reports indicate rental prices falling by up to 30% in some offices (Al Jazeera)

Al-Aqsa floods escalate crisis

Globes reports that fundamental changes led to a change in demand for offices, the most important of which was the consolidation of the principle of remote work, the effects of which were intensified by the coronavirus pandemic that spread in 2020 and 2021 and the Palestinian resistance against the occupation. The pace increased further following the Al-Aqsa flooding campaign initiated by Israel and the subsequent fierce Israeli aggression against the Gaza Strip.

The Globes survey shows that the area of ​​prestigious office towers in Tel Aviv and Ramat Gan is increasing by more than 15%. Many offices appear half-empty as employees work remotely, and companies bound by lease contracts have not returned surplus space to property owners, and recent events in light of the war have hampered many people's efforts to increase investment. Have stopped, they are waiting to see what will happen outside.

While reports indicate a drop of up to 30% in rental prices in some offices.

In a previous report, the Globes newspaper projected 2023 to be the worst year for the real estate market in Israel since the second Palestinian intifada in 2000, after adding data from last December.

This Israeli newspaper specializing in economics adds that the data refutes the claims of Israeli real estate developers that the market is improving, despite the fact that the latest report from the Chief Financial Economist showed that the market was slightly lower last November than last October. indicates improvement. , which witnessed the beginning of the aggression on the Gaza Strip.

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