Commercial news from Israel - 4th October 2025

Are Offices Beating Zoom?

If you had said a decade ago that skyscrapers in the heart of New York would stand empty, people would have called you crazy. But in 2025, the global office market plays by entirely different rules. Everyone talks about “hybrid work,” but behind the scenes, a fierce battle is unfolding which types of offices will survive, and which cities can truly adapt to the changing demands of the market.

Tel Aviv: Competing on Quality, Not Quantity

Tel Aviv’s new office towers are impressive but only the truly advanced ones manage to attract tenants. The demand is clear: proximity to a heavy (national) or light rail station is a major competitive edge, especially in a market where employees “vote with their feet” or rather, with their scooter wheels.

Tenants are looking for much more than Sq. M. ESG standards, green building systems, efficient air conditioning, and smart design are now baseline expectations. Buildings with a single ownership structure are seen as more stable and reliable, mainly due to faster decision-making and higher maintenance standards.

And yes, a gym, employee lounge, shared terraces, and on-site services are no longer luxuries; they’re necessities.

This market no longer forgives mediocrity.

Buildings that fail to convey innovation, accessibility, and comfort will simply remain empty.

New York: Empty Towers in the Heart of Manhattan

Manhattan is experiencing a strange paradox: while premium Park Avenue towers are setting record prices, vast areas elsewhere stand vacant. The trend is clear — outdated offices are losing value, and companies demand more flexibility, design, and community.

At the same time, the vacancy rate has been falling for four consecutive quarters. Demand for high-quality, flexible, and well-equipped spaces is rising, and those that don’t meet expectations are being abandoned. As a result, alongside cutting-edge projects, new initiatives are emerging to convert empty offices into residential, retail, or mixed-use spaces.

London: A Cautious Comeback

The British capital recovered slowly but is now back in the game. International firms are once again seeking a foothold in this global hub, and demand is returning, but only for those who can offer accessibility, exceptional work experience, and prime locations.

Vacancy rates are declining, but office buildings still need to “work harder” to convince employees to return.

Back Home: Innovate or Disappear

The conclusion is clear, both globally and locally: those who fail to innovate will fade away. The local market must adopt global standards, rethink offices as experiential spaces, and always remember:

It’s not just about how good the building is — it’s about how good people feel inside it.

Commercial real estate in Israel

A corporation owned by Rotshtein Real Estate Ltd., holding 42 dunams designated for storage and logistics near the moshav Tinovot, signed a letter of intent to explore long-term leasing of the land.

Melisron Ltd. signed a conditional agreement (subject to receiving approval from the Competition Authority) with companies from the Migdal Insurance Group and other companies to purchase between 51% and 70% of the ownership rights in the property where 'Golden Mall' is located in Rishon Lezion.

The consideration for purchasing 51% of the property rights is expected to amount to approximately 818 million NIS.

Commercial real estate overseas

Altitude Investments, Limited has completed a deal to acquire a medical institution in Missouri, USA, for $13 million.

A subsidiary of Mishorim Real Estate Investments Ltd. is negotiating the sale of the property in Port McNicoll.

Real estate in the headlines

Congratulations to my friend Itai Benian on his appointment as Senior Vice President for Corporate Finance, Mergers and Acquisitions at Enlight.

GT Real Estate launches a new shopping center in Ofakim (Globes)

In the past two years, the return on income-generating real estate has remained stable at 6.5%-7% (Calcalist)

Security companies are filling commercial real estate space instead of high-tech companies (TheMarker)

Guy Amosi: 'Except for the giant companies, the office rental market is looking for short-term agreements'... (Globes)