Tel Aviv law firms storm city’s office tower market
In a particularly large deal reported two weeks ago, Tidhar Construction announced that it had leased 17 floors encompassing 30,000 square meters in the Beyond project, which it is building in Givataytim on the border with Tel Aviv, to the Meitar law firm. Tidhar, which is building the project with Union Group and Himanuta, did not report thye financials of the deal, but market sources believe that Meitar is paying NIS 150 per square meter per month, or NIS 54 million annually over the 25-year contract.
For the past 20 years Meitar has been based in Ramat Gan, and the deal for the Beyond project is just the latest in a range of deals that have made Israel’s large law firms desired tenant in the new projects being built in the Tel Aviv region.
Last year Herzog Fox Neeman moved from Asia House to the Rubinstein Twin Towers in Tel Aviv’s Yitzhak Sadeh Street. The law firm is leasing 19 floors, of which three floors are kept vacant for future growth and are currently sublet. Like Herzog, Shibolet & Co. law firm has moved further away from the court building and leased seven floors covering 7,400 square meters in the Rubinstein Twin Towers.
Real estate services company Avison Young Israel co-CEO Guy Amosi says that today there is no major difference between the tech sector and law firm office markets, and there is even competition for similar offices. “If you go into new law firm offices today you will see that they are similar to a great extent to tech firm offices, they have large spaces that are similarly designed.”
Not just Azrieli and Ampa: Other offices in Tel Aviv
In addition to the aforementioned law firms, there are a large number of other law firms that have found offices in Tel Aviv. In Azrieli Town tower Fischer (FBC & Co.) has leased 10,000 square meters on seven floors.
In the Vitania Tower overlooking the Ayalon highway Gornitzky GNY law firm acquired six floors in 2018 for NIS 80 million.
In the Electra City building in Harakevet Street, Barnea Jaffa Lande has rented two full floors and five more half floors covering 4,000 square meters, and next to Electra Tower in Toval Street is the Naschitz Brandes Amir (NBA) law firm.
In Edgar Tower to the south on Hashlosha Street near the Yad Eliyahu basketball stadium, the M. Firon & Co. law firm has its Tel Aviv offices, the headquarters of nine branches in Israel (Netanya, Haifa, and Beersheva) and overseas. M. Firon has four full floors between the 17th and 20th floors.
Rent prices falling in Tel Aviv Class A office towers
Meitar leases 17-floors in Givatayim tower
One of the veteran law offices in Israel is S. Horowitz, which is housed in three buildings slated for preservation in Ahad Ha’am and Yavne Streets in the heart of Tel Aviv. The firm leases 10,000 square meters at a price estimated by market sources as NIS 100-120 per square meter, per month.
Tel Aviv’s Azrieli Towers
Law firms in Israel’s largest office complex include Yigal Arnon and Tadmor-Levy which has offices in the square tower following its recent merger, and now the country’s third largest law firm is reportedly looking for larger premises. Gross & Co. (GKH) is on floors 38-40 in the round tower and Pearl Cohen leases 5,000 square meters in the Azrieli Sarona tower.
Ampa Tower, Yigal Alon Street, Tel Aviv
Goldfarb Seligman leases six floors in the tower. Agmon & Co Rosenberg Hacohen & Co. occupies the 46th and 47th floors of the same building, and in the adjacent building is the Tel Aviv branch of Balter Guth Aloni. Prices in the Ampa Tower are currently around NIS 130 per square meter per month although most of the law firms in the tower have leases signed long ago.
Published by Globes, Israel business news – en.globes.co.il – on November 30, 2022.
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