Much has been said in recent years about the vast amount of office space that is being built in Gush Dan, especially in Tel Aviv and surrounding cities. Currently, a significant amount of this office space is under construction in four huge office projects, in towers which also include major space for other uses. These four towers will completely change the income-producing office property market and the skyline in Greater Tel Aviv. "Globes" compares them and shows how significant they are expected to be in terms of their scope and degree of impact.
The four projects are already in advanced stages of construction: Beyond Towers in Givatayim; Landmark Towers on Ha'arba'ah Street in Tel Aviv's Sarona; Azrieli Center's Spiral Tower; and ToHa2 Tower on Tozeret Haaretz Street, east of the Ayalon Highway by the Hashalom Interchange.
862,000 square meters of space in huge towers
The four projects will add, when completed, about 862,000 square meters of office, commercial, residential and public buildings space. In square meters terms, this is six times the space in the three Azrieli Towers. The most advanced of these projects, in terms of construction, is Melisron and AFI Properties Landmark. Tower A, the office and commercial tower, was completed in April 2024, and its occupancy rate is 100%. Construction of Tower B, the residential and office tower, will be completed by the end of 2026.
Azrieli's Spiral Tower, which will possess 150,000 square meters, including 250 hotel rooms and 89 residential units will be the tallest of the four, stretching upwards 355 meters with 91-floors. It will be the tallest building in the country for at least a few years.
The ToHa2 Tower is one of the most distinctive buildings currently under construction in Tel Aviv, on Tozeret Haaretz Street, and adjacent to the already occupied ToHa1 project. ToHa2 is planned to have 77 floors, in a 300-meter high tower, with 205,000 square meters of space. Beyond Towers are just outside the borders of Tel Aviv in Givatayim, and less than 300 meters from the Tel Aviv Savidor Central railway station. There are two towers in the project. The first with 78 floors, with mainly office space, and the second with about 60 floors that will include small residential units. The office tower will rise to a height of 320 meters, and is currently the tallest tower in Israel, until the construction of the Spiral Tower is completed.
Landmark is currently the most expensive of the projects
Landmark is the most expensive in Israel today, at least "on paper." Its book value as of the end of the first half of 2025 was NIS 3.62 billion, up NIS 70 million from the end of the first quarter of 2025, and from NIS 3.39 billion at the end of 2024. To this must be added another NIS 681 million, the value of the office space alone in Tower B under construction, according to recent Melisron reports, so the entire project is expected to be worth more when it is completed. In total, the project will offer, in the two towers together, 171,000 square meters of mainly office and residential space, as well as commercial and public spaces.
Azrieli's Spiral Tower, which is currently being built alongside the three famous towers in the Azrieli Center by the Hashalom Interchange, is already worth NIS 2.385 billion today, up NIS 99 million from the end of the first quarter 2025, even though construction won't be completed until 2028 - the latest date of the four projects.
According to Azrieli's report, 30% of the tower was completed at the end of 2024. The fair value of the project at that time was NIS 2.223 billion, up from NIS 1.932 billion at the end of 2023. The value of the project will increase significantly, when it attracts new tenants and finally occupied.
The value of ToHa2, which will be completed by the end of 2026, was NIS 2.73 billion in mid-2025, worth more than the Spiral Tower. The value of Toha2 has increased significantly over the years. At the end of 2022 it was worth NIS 1.284 billion, meaning that in 30 months it has nearly doubled its value. At the end of 2024 its value was NIS 2.2 billion. The project's developers, Amot and Bayside, are already buying up land for the ToHa3 project, which will be built nearby, and does not yet have an estimated value.
Beyond Towers belongs to Tidhar, Goerge Horesh's Union and Himanuta - private companies (Himanuta is a subsidiary of KKL-JNF) that do not publish the value of the properties.
Leases already signed: tech and law firms
The ToHa2 Tower will offer mainly office space. Google, has already leased 20 floors in the tower - about 60,000 square meters, and will pay about NIS 115 million in rent per year. The company has also leased several hundred parking spaces, under a ten-year contract. Since the Google deal was reported, over a year ago, no other deals in the tower have been reported.
In Azrieli's Spiral Tower, as of the end of 2024, leases had been signed for only 9% of the space for rent. According to reports, Rapyd will lease 14,000 square meters of office space in the tower, and law firm of Naschitz, Brandes, Amir will lease 11,000 square meters.
In Landmark, Meta, signed an agreement to lease 51,000 square meters of offices space on 20 floors, for seven-years but has given up seven of the 20 floors, which have been leased to Cyara, Tenable, and Workday.
In Beyond Tower Meitar law firm signed a lease for 30,000 square meters on 17 floors, for years, for NIS 54 million per year. Fisher (FBC) law firm, currently in the Azrieli Town Tower, has leased 14,400 square meters, on eight floors, and Lipa Meir law firm heased 7,000 square meters on four floors. Tech firm Akamai, currently in the ToHa1 tower, is in talks to lease floors in the tower to expand its offices.
Demand: promoting ToHa 3 and ToHa 4
In the long term, the companies currently building are confident that there will be demand for more towers, at least in the heart of the demand area in and around Tel Aviv. In Amot's latest financial report, it states that together with Bayside, it is already planning ToHa 3 and ToHa 4, which will include an unknown amount of office space.
Newmark Natam VP real estate services Or Ben Zvi Klein says, "The so-called 'scooter triangle' of Tel Aviv, continues to fill up and remains strong, and it seems that this will continue to be the case in the future. Over the years, they have always asked who will occupy all the towers that have been built - back to the days of the Alon Towers, for example - and everything was filled in the end."
"However, there is no doubt that this is something special. I don't remember another time when several such mega-projects came onto the market at once, all of which are already leased to one degree or another, but I believe that they will all be filled. The Azrieli Spiral Tower is apparently currently in the worst situation in terms of occupancy, but its occupancy is the furthest away, and I estimate that by the time it is nearing completion, it will also be almost fully occupied. There is constant talk about the existing and expected surplus of offices in Israel, especially in Gush Dan, but for large international companies there really aren't many options, and these towers, which are being built to the highest standard and in the best location, are exactly what they are looking for.
"The companies that have already signed leases in each of these towers, huge anchor companies that have occupied tens of thousands of meters, are testimony to the special quality of these projects. They have an impact both on the value of the towers, which continues to rise as we see, and on rents. Let's take the Landmark project, for example, one of whose towers is already almost fully occupied. On the upper floors we are talking about rents of NIS 160 to 180 per square meter - a very high price level.
"The interesting question is what will happen with the space that these giant companies are vacating - the tech companies that are moving, the law firms that are 'improving housing' for new offices. In general, since most of them have moved from offices more or less in the same areas of the four new towers, I believe that these spaces will eventually be filled. It can be estimated with great certainty that the Ampa Tower, for example, from which Google is moving, already has a long waiting list of companies that want to enter the space that will be vacated. But we must take into account that the office market is slowing down, and that it takes more time for deals to mature. Bottom line, this is the real challenge for the office market in the near future will be to manage to fill all the spaces that will be vacated."
Published by Globes, Israel business news - en.globes.co.il - on August 21, 2025.
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