Q3 office rent hits record high in TA

The average rent for Tel Aviv offices in the third quarter was a record NIS 102 per sq.m. Herzliya was in second at NIS 86 per sq.m.

By JERUSALEM POST STAFF
Cars drive on a highway as a train enters a station in Tel Aviv, Israel (photo credit: REUTERS)
Cars drive on a highway as a train enters a station in Tel Aviv, Israel
(photo credit: REUTERS)
A Quarter 3 study by CBRE Israel on the office sector revealed that office rent in the first nine months of 2019 increased dramatically in Tel Aviv and Netanya by 5% and 6%, respectively.
The average rent for Tel Aviv offices in the third quarter was a record NIS 102 per sq.m. Herzliya was in second at NIS 86 per sq.m.
The study by CBRE Israel also revealed that the average return for office rent in the third quarter of 2019 decreased by about 6 percentage points to 6.75%, compared to 2018’s 7.2%.
Jacky Mukmel, chairman of CBRE Israel, said that “Despite the significant increase in construction and marketing of new office towers, most of them are in the Tel Aviv and Gush Dan area, with a total area of 700,000 sq.m. Tel Aviv’s office occupancy is 94% at Ramat Gan 93% and in Herzliya 92%.”