Where to Start
Congratulations. You've grown, you've scaled, and you've run out of space. Now you need a new office. But where do you even begin?
A quick look at listing sites leaves you dizzy. Most properties there aren't relevant, information is partial, photos don't always reflect reality, and who knows what you actually need?
Here's the thing. Before you start touring properties, you need to answer four questions:
1. Location: Where in Tel Aviv? Sarona? Yigal Alon? Hassan Arafa? Or maybe the Ramat Gan Bursa?
2. Budget: How much per sqm (including management fees)?
3. Size: How many workstations do you need — today and in 1–2 years?
4. Timeline: When do you need to be in?
Sounds simple, but most companies that come to us haven't answered all four before they started searching. That's what turns a one-month process into four months.
What Matters More, What Matters Less
Once you've defined the basics, you need to prioritize. Because in the real world, you can't have everything.
Is sitting on the highest floor in Sarona more important to you, or keeping a sensible budget? Is maximum train access a hard requirement, or can a 15-minute walk from HaShalom work?
There's no right answer. Some companies value the address more than the price — it's part of the brand. Others prefer saving 50 ILS/sqm and investing in their people. Both approaches are legitimate. What isn't: not deciding. Because then you tour ten properties with no common thread, and ultimately nothing moves forward.
Ranges, not rigid numbers
A common mistake: setting parameters that are too rigid. "Only Sarona, only under 150 ILS/sqm, only above floor 20." That eliminates 90% of the market. Better to think in ranges: "Sarona or Hassan Arafa, 130–170 ILS/sqm, floor 10 and up." That gives room to find the right deal.
How Long to Lease
This may be the most important question, because the answer affects everything: the type of deal, the price, the level of investment in the space, and what the landlord is willing to give you.
| Term | Lease type | Best for |
|---|---|---|
| Up to 2 years | Plug & Play / Sublease | Young startup, company uncertain about growth |
| 3 years | Tailor Made / custom fit-out | Growing company that wants a customized space |
| 4+ years | Shell (full fit-out) | Stable company that can plan ahead |
The rule is simple: the longer the lease, the more the landlord is willing to invest in the space, the better the terms, and the more room for negotiation.
How long does the process take?
From the decision to start looking to signing: typically 2–6 months, depending on how defined your requirements are and what's available. For shell space deals with a fit-out, add 5 months for construction (sometimes 7–8), plus a grace period before rent starts. The practical recommendation: start looking 6 months before you need to be in.
Shell Space: What It Is and Who It Suits
A shell deal means a full fit-out. You receive an empty box — walls, ceiling, and floor — and build the office from scratch. This can be an older building being adapted for a tech company, or a new building with nothing in it but the structure.
What does it cost
As of 2026, a basic shell fit-out starts from 4,500–5,000 ILS/sqm. More ambitious specs cost more. The level depends on finish quality, technical requirements, and designer ambition.
Don't be scared by the numbers. In most cases, the landlord budgets and pays for the fit-out. The cost is rolled into the rent. The common formula: every 100 ILS/sqm of landlord contribution = 1 ILS/sqm added to monthly rent. Example: 5,000 ILS/sqm landlord contribution means you pay 50 ILS/sqm more monthly. If the base shell price is 100, you pay 150.
Shell suits: companies that know they're staying at least 4 years. Companies with specific requirements (server room, studio, lab). Companies that want full control over design and layout.
Shell doesn't suit: companies unsure whether they'll be 20 or 80 people in two years. Companies that need to be in next month.
Plug & Play and Sublease
If you're an early-stage company that can't commit to 4 years, with a maximum of 2 years, there are two good options:
Plug & Play (ready to move in)
A furnished and equipped office. You come in, plug in your laptops, and start working. No planning, no design, no waiting 3 months for a fit-out. The per-sqm price is higher than shell, but without the upfront investment.
The downside: you live with someone else's layout. It doesn't always map 1:1 to what you'd want.
Sublease
Another company leased a space and isn't using all of it (or left before their contract ended). You step into their shoes. Sometimes the best deals on the market are subleases, because the company that left wants to get out from under the obligation and is willing to be flexible on price.
Tailor Made: the middle option
Some landlords who understand the tech and startup market will offer a full custom fit-out deal even for a 3-year term. The landlord manages the fit-out, you get a bespoke space, and the lease term is shorter than a traditional shell deal. Not common, but it exists. You need to know where to look.
How Much Space Do You Actually Need
A question that sounds simple but is tricky. The reason: all prices in the Israeli market are quoted in gross sqm — but gross and net are not the same number.
Gross (bruto) = the area on which rent is calculated. It includes the tenant's actual floor space plus a proportional share of all common areas in the building: elevators, lobbies, corridors, gym, lounge, shared bathrooms, and so on.
Net (neto) = the actual floor area the tenant occupies and uses.
The rule of thumb: in towers, gross is typically 20–30% higher than net. That means 1,000 sqm gross ≈ 700 sqm net in practice. In lower-rise buildings with minimal common areas, the gap is only 10–15%.
This matters when comparing prices across building types. 150 ILS/sqm gross in a tower where net is 70% of gross works out to ~214 ILS/sqm net. In a low-rise with an 85% net/gross ratio, 130 ILS/sqm gross = ~153 ILS/sqm net. The gap is smaller than it looks — but it has to be accounted for.
How to calculate
Not by sqm. By workstations. Step one: count how many workstations you need. Think about layout: closed rooms, open space, team rooms, meeting rooms, kitchen, reception. Step two: for each specific property, check how many workstations actually fit. That's the only way to know if the space works.
The rule that saves an unnecessary move: always take space with 10–20% growth buffer. Better to pay a little more for empty space today than to relocate in a year. An office move costs tens to hundreds of thousands of shekels: fit-out, equipment, productivity loss, and sometimes penalties for breaking a lease.
The Players in the Deal
| Player | What they do | What it costs |
|---|---|---|
| Landlord | The owner. Sets price, terms, and lease length. Sometimes manages directly, sometimes via a management company. | Rent (80–250 ILS/sqm/month) |
| Management company | Manages the building: security, cleaning, maintenance, lobby. | Management fees (15–25 ILS/sqm/month) |
| Broker | Finds suitable properties, manages the process, conducts negotiation. | One-time fee: one month's rent |
| Lawyer | Reviews the lease, protects your interests. | Per retainer agreement |
Why use a broker
A question that comes up a lot. The answer is straightforward: a broker knows the market. They know what's available, including properties not listed publicly. They know what's a fair price and what's inflated. They manage the negotiation with the landlord, and they spot traps in the contract you won't notice.
The broker fee — one month's rent, paid once — pays for itself quickly when you consider the time saved, the mistakes avoided, and the negotiating power you gain. There are very few decisions in the office leasing process where using a broker isn't the right call.