Office rental prices have risen in the first two months of 2021 after a devastating 2020, according to a CBRE Israel study.
Rental prices for offices in Tel Aviv have risen 2% to NIS 97 per sq.m., after rental prices for offices fell between 4% and 11% in 2020 due to the pandemic.
Jacky Mukmel, chairman of CBRE Israel, said Bnei Brak and Petah Tikva are still suffering from significant damage to office rental prices due to the large number of purchasing group projects, and a high level of competition resulting in a price of NIS 50 per sq.m., almost a 50% drop due to corona.
“The office sector is experiencing a significant decrease in activity, characterized by uncertainty in the market, which has added to a slowdown and a decrease in prices especially among users who are looking for subleases for their areas, who are willing to make significant compromises,” CBRE Israel found.
The demand for office space at the beginning of 2021 is rising, and is beginning to return with slight increases in rental prices, according to CBRE Israel. There was a sharp decrease of dozens of percentage points in the volume of construction starts for offices in the first two months of 2021.