Commercial news from Israel - 1st April 2025

The Logistics Gold Rush You Might Be Missing

Here's a number that should grab your attention: 95%. That's the current occupancy rate of Israel's logistics and industrial spaces. And according to market expert Tamir Ben Shachar, we've been adding nearly 900,000 square meters annually to meet soaring demand - with another million square meters needed in the next five years.

What's driving this quiet revolution?

The e-commerce boom. Pandemic-changed supply chains. Seven-front security challenges. And perhaps most importantly - small and medium businesses tired of being at the mercy of landlords.

Last week in Herzliya, in a room filled with 100 of Israel's top real estate professionals, Pini Dekel and Ronit Azriel of Logit by Karville unveiled their vision for the future of logistics properties. The energy was palpable.

Their approach is refreshingly different:

Transform your balance sheet – Why keep paying rent when you could own an appreciating asset? Turn that monthly expense into a long-term investment.

Beyond the concrete box – Forget standard warehouses. Think custom-designed spaces built for your specific operational need.

Strategic locations nationwide – From northern Acre and Nesher to Park Yoav and the southern Idan HaNegev, they're developing properties along key transportation arteries that keep you connected.

Here's my take: While office and retail real estate make headlines, the logistics sector for small and medium businesses has quietly become Israel's most reliable real estate play – stable returns, consistent growth, and genuine demand driven by real business needs.

Commercial real estate in Israel

A company held by B. Gaon Holdings Ltd. signed with Shemen Real Estate Meniv Ltd. an agreement to sell 100% of the rights to its land and building in the industrial zone of Be'er Sheva North and a lease agreement under which the property will be leased to a subsidiary of the buyer. In accordance with the agreement, the property was sold for NIS 40 million.

Rothstein Real Estate Ltd. entered into a binding letter of intent, through a corporation it owns (59.2%), for the consideration of a long-term lease on land in an area of approximately 42 dunams in Tnuvot, designated for warehousing and logistics.

Commercial real estate overseas

Foreign subsidiaries of Lahav L. R. Real Estate Ltd. have signed an agreement to acquire full rights in 3 shopping centers, with a total area of approximately 11.6 thousand square meters and approximately 6.2 thousand square meters of built-up area, in 3 different cities in Germany, for a consideration of EUR 10.7 million.

MDG Real Estate Global Limited is negotiating a conditional agreement to sell the company's holdings in a property in New York State located at 33-21 Union Street, for a consideration of approximately USD 75,000 thousand.

Real estate in the headlines

Enlight to build server farms in Negev (Real Estate Center)

Check Point purchased a plot of land in Tel Aviv with Israel Canada for NIS 818 million (Calcalist)

Guy Amosy 'will be tested in implementing' Airbnb for offices (Yediot and (Ynet)