CBRE Israel: Q3 rents continue to decline amid COVID-19
Bnei Brak and Petah Tikva were most significantly affected by the crisis.
By JERUSALEM POST STAFFTHE OFFICIAL reason these government offices haven't moved to the capital? Not enough facilities to house them(photo credit: HADAS PARUSH/FLASH90)
A study by CBRE Israel on the office and commercial industry in the third quarter of 2020 found that since the beginning of the coronavirus crisis, office rents have fallen by 4% to 11%, and rents in commercial areas have fallen by 5% to 13%.Jacky Mukmel, chairman of CBRE Israel, said: “After more than five years in which rental prices for offices have been on a steady upward trend, in the 3rd quarter of 2020, the downward trend in prices continues as a result of the pandemic. In Tel Aviv, rental prices for offices fell by 6% in the first nine months of 2020, and rental prices for shopping malls and commercial centers fell by 13%.”Bnei Brak and Petah Tikva were most significantly affected by the crisis, due to the large number of projects in the office industry, a high level of competition, and the activity of many purchasing groups in the industry.In the fourth quarter of 2020, the decrease in office rents is expected to continue, due to a decrease in demand, vacant office space and the transfer of many employees to work from home.“The office sector is experiencing a significant decline in activity that characterizes the summer period, but this year there is considerable uncertainty which has added to a slowdown and a sharp drop in prices, especially among users who are looking for subleases for their plots,” Mukmel explained.
