Offices

A Natam report for the first half of the year points to a change in the demand map for offices: software and gaming companies are reducing space, while defense-tech, cyber, and defense industry companies are becoming the growth engine. In Tel Aviv, occupancy in prime towers is approaching 99% and rent is climbing; but outside of it, there has been a decrease in occupancy and prices.

REIT 1 has made progress in leasing office space at the Infinity complex, but occupancy rates remain below targets. Amid moderate growth in operating income, the fund was forced to revise its annual performance forecast downward.

Following advanced negotiations to lease approximately 4,500 square meters at the Wix campus in Glilot, the deal has been canceled. Fiverr, whose current lease in Tel Aviv is nearing expiration, had been seeking larger office space, but its future plans remain uncertain.