What will happen to all the offices that are being built... this is a question that has been repeated in my ears in recent years and in recent weeks even more so. I will try to make some order.

The buildings being built in Israel are among the best of the best. Magnificent lobby, balconies, gyms, amenities, buildings in Leed and Well standards. Really high level. I know this because when managers of real estate departments from abroad come on tours of the country, they are amazed and constantly say so.

The market is divided into buildings with a single owner, usually the large initiative companies, insurance companies, finance and real estate companies, and buildings with multiple owners. Usually in the structure of purchasing groups.

In the old days, the absorption capacity of the market for new offices stood at hundreds of thousands of square meters per year at the low level, let's say around 200 thousand square meters.

Israel is not a bubble. In the last two or three years, due to various reasons in the world, including: the increase in interest rates, the Russia-Ukraine war, the drop in the market value of the tech companies in the world, the various derivatives of the corona and working from home, we are not on the mend, not in the world, and in Israel because of the political upheavals and the war even more so.

Real estate is a huge, slaughtering ship, and changing direction takes time. The entrepreneurs who planned the office towers and set out to implement them, did so years before the crisis described and as a result of which the excess supply was created. When the hi-tech world returns to being conducted as it was in the past, hopefully it will happen soon, any excess The supply will be absorbed and it is possible that there will even be a shortage of areas because historically, business real estate is conducted in a sinusoid.

Commercial real estate in Israel

Israel-Canada (T.R.) Ltd. has completed the purchase of land in Tel Aviv, in an area of approximately 2.4 dunams, intended for a tower of up to 45 floors, 17,500 square meters of commercial and employment space in exchange for a total of approximately NIS 437 million.

Commercial real estate overseas

A subsidiary of Carden Ann. V. entered into an agreement for the sale of its holdings (50%), in a project company in China, which owns the Olympic Garden project, with a total area of approximately 24 thousand square meters intended for hotels, offices and commerce, for approximately 12 million euros.

Real estate in the headlines

The giant tenders for government offices in Jerusalem (Globes)

Reality fund purchased 40 dunams of agricultural land in Herzliya for NIS 205 million (Calcalist)

Katzman sells Menorah 50% of four commercial centers for half a billion shekels (The marker).