Tel Aviv Real Estate Market Explodes; New Tower to be Built & Office Space in Demand
Edited by: TJVNews.com
Now that international travel is becoming a safe option after the Covid-19 pandemic, it appears that the real estate market in Israel is emerging with full force.
Back in January, it was reported in the Times of Israel that Tel Aviv’s planning and building committee gave its approval for the construction of a 91-story tower by the Azrieli Group and this new building is set to become the second tallest structure in the entire country.
The new edifice will be known as the Spiral Tower and will be a part of the Azrieli Center Complex. It will take four years to construct, give or take, and according to business daily Calcalist. The complex includes the famous circle, square, and triangle towers of the Tel Aviv skyline, as was reported by TOI.
When the construction of the tower is completed, it will be 100 meters taller than the Azrieli Sarona Tower which stands at 238 meters and is the tallest building in Israel, according to the report.
The project was taken on by the Kohn Pederson Fox Associates architectural firm which is based in the United States along with Eli Arria Architects and Moshe Zur Architects that are both based in Israel, as was reported by TOI.
Such famous towers as the World Tower located in Seoul, Korea which stands at 555 meters and One Vanderbilt Tower in Manhattan were both done by the KPF architectural firm. The total cost of the Spiral Tower is approximately $800 million, the report indicates.
In February of this year, TOI also reported that Tel Aviv’s office shortage and skyrocketing prices have increased in intensity. In January, a brief article appeared in a weekly real estate newsletter about a startup founder who had recently raised funds to grow his company and “wondered out loud whether he should acquire another startup strictly for its five-year office lease in a prime location in the city, “ according to the TOI report.
The newsletter which is produced by Guy Amosi, the CEO of the international real estate advisory firm, Avison Young said that the conversation took place during a meeting between the founder and members of the firm. The newsletter is distributed to over 4,000 global business leaders, according to the TOI report.
Posting on LinkedIn, the Avison Young firm said that over the past 18 months, “real estate in the right location has become… almost as important as [a] company’s patents.”
The report also indicated that Avison Young said that the supply of available office space in the proximity of the Savidor and Hashalom train stations in Tel Aviv is rapidly decreasing while the demand for such space is exploding through the proverbial roof.
The TOI report said that the area that is in demand “runs along both the eastern and western sides of the Ayalon highway from the Arlozorov interchange to south of Yitzhak Sadeh Street, where the Azrieli Towers and Sarona anchor the space on Menachem Begin Boulevard.”
Speaking to the Times of Israel in a phone conversation in early February, Amosi observed, “Quality office space has become like a valuable patent in the sense that it is a gateway to making high quality hires. Office space located near the talent is key to a company’s success.”
While many employees the world over worked remotely from home during the Covid-19 pandemic, the same was true for Israel. Experts in the real estate industry attempted to figure out how the work from home phenomenon would impact on the office space market. Any were concerned that office space would become way too abundant and leasers and building owners would have no choice but to give office space away at a nominal charge. (Sources: TOI)