Who will occupy the previous workplace towers?
Tel Aviv’s skyline is quickly altering as new workplace towers go up one after one other. The Past, Toha 2, Hasolelim, and Spiral towers are simply a number of the tasks which might be creating a brand new cityscape within the enterprise district alongside the Ayalon Freeway, whereas new towers are additionally below building within the Diamond Alternate space of Ramat Gan and in different cities.
Many of those tasks at the moment are reaching the occupancy stage, and a number of other corporations have just lately moved residence. The tenants are interested in a complicated work atmosphere, ancillary companies, and accessible public transport, however the strikes depart behind vacant area within the buildings they occupied previously, elevating the query of who will are available in of their stead.
An instance is the beginning of occupancy of the Past Tower owned by Tidhar (TASE: TDHR), George Horesh’s Union Firm, and KKL-JNF subsidiary Himnuta. The primary tenant is Meitar, the most important regulation agency in Israel, which is leasing 30,000 sq. meters on seventeen flooring within the tower. The agency is transferring from Aurec Home on Abba Hillel Silver Boulevard in Ramat Gan. Meitar was a most important tenant in that constructing, and no alternative tenant has but been discovered.
One other substantial tenant within the Past Tower is cellular video games firm Moon Lively, which is able to lease 22,000 sq. meters on eleven flooring for ten years. The corporate at present rents 26,000 sq. meters within the Vitania Tower in Tel Aviv. It is because of transfer to its new premises on the finish of 2027. Once more, no alternative tenant has but been discovered for its present places of work.
The regulation agency of Lipa Meir & Co. can be transferring to the Past Tower. It has leased 7,000 sq. meters on 4 flooring for twenty-four.5 years, and is leaving 4,000 sq. meters in Amot Investments Home on Weizman Road in Tel Aviv.
Know-how big Google has leased 60,000 sq. meters in Amot and Bayside’s Toha 2 tower on Yigal Alon Road, and can vacate 9 flooring in close by AMPA Home. Sources within the sector say that the area that Google is leaving may very well be used for enlargement by two present tenants in AMPA Home: regulation companies Agmon with Tulchinsky, and Goldfarb Gross Seligman. It’s not but clear whether or not these two companies will be capable to take over the entire vacated area.
Not removed from there, reverse the Toha web site, is the Hasolelim challenge of Mivne (75%) and Tidhar (25%). Final week, cybersecurity firm Armis moved into the challenge, and blockchain safety firm Fireblocks is because of be a part of it. They are going to vacate places of work within the Acro Tower on Yitzhak Sadeh Road. By way of Fattal Holdings’ Switchup property administration firm, the 2 corporations have leased 8,000 sq. meters and 13,000 sq. meters respectively. In keeping with business sources, 4 different cybersecurity corporations will exchange them within the Acro Tower.
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Avison Younger Israel CEO Man Amosi describes the scenario as “a recreation of musical chairs within the Tel Aviv workplace market.”
“It seems as if we will see a break up of the workplace market into two,” he says. “On the one hand, new towers are attracting and can entice robust corporations. However, any transition like this creates a ‘gap’ in an previous constructing, and within the coming years the problem might be not a lot to lease out the brand new ones as to refill the earlier era.”
Not simply in Tel Aviv
The pattern just isn’t restricted to Tel Aviv. An excellent instance is Mizrahi Tefahot Financial institution, which left the Moshe Aviv Tower in Ramat Gan, the place it leased 12,700 sq. meters on eight flooring, and moved to a brand new headquarters that it inbuilt Lod. In keeping with its second quarter financials, Sella Actual Property, which owns the Ramat Gan constructing, has not but discovered a alternative tenant, and the occupancy fee within the tower will fall to 50% in 2027 due to the financial institution’s departure.
One other instance is the Airport Metropolis web site, the place know-how firm Audiocodes has left its places of work in favor of Park Naimi at Mesubim Junction. The transfer was accomplished within the spring of 2024, however the 17,000 sq. meters that the corporate vacated in Airport Metropolis stay empty. Many additional such examples may be present in different cities and workplace zones in central Israel.
Zachi Agassi, founding father of 770 TLV Places of work agrees with Amosi that the workplace market is bifurcating, and says, “Buildings in robust places will proceed to get pleasure from demand, however area that’s vacated should compete anew for tenants.”
Aurec Home, he says, is an efficient instance. “Meitar is abandoning high-quality area at an accessible location, however it’s partly designed for a regulation agency. A know-how firm regards places of work in another way: individuals in shut proximity to 1 one other, frequent areas, assembly rooms, group areas, and suppleness for future modifications. The query is subsequently how far the product being vacated fits the following era of tenants.”
In keeping with figures from Colliers Worldwide Israel, the workplace market may also have to deal with extra area that can develop into obtainable within the coming years. Within the subsequent 5 years, 1.64 million sq. meters might be added in Tel Aviv, 681,000 sq. meters in Petah Tikva, 455,000 sq. meters in Herzliya, and 350,000 sq. meters in Bnei Brak. In Jerusalem, within the Har Hotzvim industrial zone, between 350,000 and 500,000 sq. meters of recent workplace area might be added.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on October 13, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
