Tel Aviv

Space Measurement Standard

GROSS

Space Unit of Measure

Square Meters

Financial Data Below Reported In

USD

15%-25%*
Typical Loss Factor from Rentable to Useable Square Meters

Loss Factor Notes:

*Gross net ratio

Landlord Concessions

Fit-Out Concession

The Landlord typically provides a contribution or concession to fit-out as a part of the lease transaction.

Amount of Fit-Out Concession

$260/sm-$660/sm

Typical range of fit-out contribution.

Fit-Out Cost Notes:

Low figure: 1% annual recovery by rent

Rent-Free Period

The Landlord typically does not provide a rent-free period in addition to the fit-out contribution.

Rent-Free Period Notes:

Negotiable

Lease Provisions

Lease Term

3yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

$5.4/sm-$7.5/sm

Estimated range for all additional charges per Square Meters.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

In some cases, the landlord needs to approve the tenant

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Workplace

Regional Office Space

9sm-10sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Regional HQ Office Space

12sm-14sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Tel Aviv is a leading market in this category.

Desk Sharing

Desk-sharing is not a common practice in the market.

Urbanization of the workforce is: Equal to several other considerations driving location decisions

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Rent-Free Period

The Landlord typically does not provide a rent-free period in addition to the fit-out contribution.

Rent-Free Notes:

Negotiable

Lease Provisions

Lease Term

5yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

$2/sm-$4/sm

Estimated range in total for all additional charges per Square Meters.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

In some cases, the landlord needs to approve the tenant

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Section 1. Fit Cost Data

Section 2. Scope of Work Description

Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.

Incentives and Labor Market

8, 2 8/10

Incentives
Value potential, diversity/number of programs

3, 7 3/10

Job Saturation
Competition for workers

8, 2 8/10

Wage Inflation
Rise in wages (past 10 years, local currency)

Educational Attainment

6, 4 6/10

HS Ed Eq
Proportion of population attaining this level

8, 2 8/10

University Ed
Proportion of population attaining this level

7, 3 7/10

Overall
Composite average of HS Ed Eq & University

Composite

7, 3 7/10

Additive sum of incentives, saturation, overall ed attainment, and wage inflation

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