Speaking about setting up and doing business in Israel, one usually means the establishment of a company in one of the top-notch Tel Aviv's offices. The metropolis enjoys an increased exposure to the technology domain, a sector that grows and develops rapidly. On top of that, this dynamic area is home to a number of enterprises and establishments operating in the fields of finance, accounting and insurance, logistics, manufacturing, CRE, and many others. The office space market in Tel Aviv experiences a positive performance, regardless of all the turbulent times for the global economy. The rental prices for premises in the city are averaging at approximately NIS95 per sq. m. per month, and depend primarily on the location of the office in Tel Aviv. Thus, premises in more central and famous districts, like Downtown and Yigal Alon Corridor, are among the city's most expensive assets. Contrary to that, neighborhoods such as Ramat HaHayal, Ramat Gan Bourse, as well as a district of Rothschild Boulevard boast cost-effective offices for rent in Tel Aviv. Because of this, the aforementioned areas are highly sought-after among startups and SMEs. At present, Tel Aviv's office stock can benefit from increasing occupancy rates and rental costs, with Class A premises being the most popular types of options among tenants. Still, as the city is the most expensive in the Middle East for its cost of living, lots of young businesses are looking for Class B solutions here. This submarket also features a high occupancy rate - more than 90%. Many large companies also tend to rent Class B Tel Aviv's offices in order to reduce costs.
