CBRE: Employees demanding TA offices, not managers

It’s not the management that’s making the decision where to locate the company’s offices, but the employees, a CEO from a leading real estate firm said recently.

“In the last year, there is a new phenomenon where the employees of the companies are the determining factor in the management’s decision regarding where to locate the companies’ offices,” said Jacky Mukmel, CEO of CBRE Israel. “This is the main reason that the office occupancy is 92% in the Tel Aviv area, and 90% in Herzliya and the Sharon.”

Mukmel made the comments at CBRE Israel’s conference on technology and innovation in the real estate world, held in Herzliya, in the presence of about 150 hi-tech, technology, communications and international companies.

The CEO also noted that even though companies in Tel Aviv and the rest of the Gush Dan region began marketing new office towers last year with a total area of 700,000 sq.m., it is expected that in the second half of 2019, rental prices in Tel Aviv and Herzliya will rise between 2% to 3%. Rent for offices in Tel Aviv is about NIS 100 per square meter per month, and rent in Herzliya is about NIS 86 per square meter per month.

At the conference, CBRE Israel showed off the development of technologies that help companies locate suitable properties, rate demand areas and provide information on transportation infrastructure, employee environmental quality and functional testing of assets.