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The soaring office rental prices in Tel Aviv are prompting a critical question among business owners and CEOs: Does operating from a Tel Aviv office still justify the steep cost compared to nearby cities like Holon to the south and Bnei Brak to the east?
In recent years, advanced office towers have sprung up in Holon and Bnei Brak’s business districts. These modern buildings meet high engineering standards and offer all the amenities expected of a contemporary office space — impressive lobbies, floor-to-ceiling windows, state-of-the-art electro-mechanical systems, convenient underground parking with EV charging stations — all for less than half the price of similar offices in Tel Aviv. In many cases, they also offer better accessibility than Tel Aviv, which currently suffers from severe traffic jams due to light rail construction and urban renewal projects.
According to Itai Shafran, an economic advisor and partner at Pitronot, the current shell rent for offices in central Tel Aviv stands at around ₪145 per square meter, compared to just ₪55 per square meter in Holon. As a result, companies that don’t have to be in Tel Aviv — especially those in tech and service industries — are realizing that the dramatic price gap makes relocating to alternative business hubs in Holon and Bnei Brak a sound financial decision. Such a move doesn’t compromise accessibility and may actually ease commuting for employees coming from Petah Tikva, Rishon LeZion, Bat Yam, Rehovot, Ness Ziona, Holon, and southern Tel Aviv.
Major banks and credit card companies were among the first to recognize that the math no longer works in Tel Aviv’s favor. In Bnei Brak, Holon, Lod, and other nearby cities, rent in modern office towers can be as low as 40% of what companies pay in Tel Aviv. Service and tech firms have followed suit, and today, many prominent towers in Holon, Bnei Brak, and Lod are home to a growing number of businesses.
Recently, real estate investment fund Timora acquired a tower from Gav-Yam in Holon’s new Government Complex, located on the northern end of HaMelacha Street, near Route 44 which connects Tel Aviv and Holon.
Issy Merdler, Marketing Director at Timora, notes that only the top three floors of the tower remain available, with the rest occupied primarily by international companies and brands. According to Merdler, the project offers several clear advantages: significantly lower rent compared to Tel Aviv, excellent accessibility, and ample parking. Moreover, Timora provides professional support to new tenants — from architectural planning and electrical consulting to full project execution guidance — saving valuable time and making the transition to new offices smoother.
So, when a modern, accessible, and stylish office costs half as much — why stay in Tel Aviv?
