Weekly Newsletter Mar 15, 2021

Yavne Burning

An interesting story. About a month ago, our Client A was looking for a storage and operating space of about 2,000 Sq. M, located in the center of Israel. We offered him a beautiful logistics space, fitting his demands, in Yavne. After visiting the asset, we asked for and received an agreement. However, the landlord noted, with a smile ..." first come, first served"...  Client A’s legal department delayed (by a reasonable 5 days = 120 hours) and when were ready to move forward, 1,000 Sq. M of asset was already taken by another company.

Our Client B was looking for about 1,000 Sq. M for storage, so this past Tuesday we scheduled with the landlord to come and see the 1,000 Sq. M remaining from Client A’s story. On Thursday (a mere 48 hours later), when we arrived to the site, the landlord showed us a line on the floor, where he will build a fire wall leaving only 280 Sq. M. from the asset. As, during the interim 2 days, 720 Sq. M were signed with another client 
Of course, we found other spaces for both clients, but this is a small taste of the "fire" burning in the world of storage, logistics and operations throughout the country. 
And another point of interest -  the rental prices for spaces, such as the one in Yavne, are in the range of ILS 40+/ Sq. M /month for an asset approximately 6 M high.
By comparison, today we can procure very decent offices, ready to occupy, in the most prestigious buildings in BBC (Bnei Brak's business district), in the price range of ILS 40-50/ Sq. M/month.

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