Weekly Newsletter Sep 28, 2020

28 Sep 2020

“I feel the need, the need for speed!" - Tom Cruise (“Maverick”), Top Gun

Indeed, Maverick, we feel the same! The choice of location for a company’s data center is predicated on the degree of need for speedy, real-time information. A few of the factors in making this determination are the end-user’s level of urgency for the given information and reliability of the fibers transmitting the data. Data center location and real estate costs are subsequently derived and evaluated.
Typically, high-tech companies have three options with respect to storing data: (1) Utilize its existing server room, (2) build its own data center, or (3) enlist the services of data center operators/providers.
The challenge of constructing a data center are the enormous capital costs for infrastructure required, and the fact that technological developments and changes to industry standards render the centers obsolete and unsuitable within a relatively short time period of three to six years. Consequently, the number of companies that use independent data centers is shrinking.

The average size of a data center is roughly 100,000 square feet, although many data centers are several times larger. These centers consume massive amounts of power for operation and cooling; in fact, more than 7.4% of the world's electricity power is allocated to data center usage. To reduce cooling costs, many data centers are located in areas of mild/cool weather, or in close proximity to rivers to employ the power of green and renewable energy for its operations.

Of all the sub-categories of commercial real estate occupiers, the data center sector appears to be least affected by the effects of COVID-19, and the level of investment interest in the sector remains high.
We would be delighted to share our experience, knowledge of investment availability and forecasts surrounding this subject, both in the Israeli market and around the world.

Data Centers  Ensure business continuity and profitability (Avisonyoung.com )

Big wins AY – Propertech

Represented hi tech company in leasing 15,000 square feet  office space in a business park in the center of Israel. 


Israeli commercial real estate deals

  • Dubai corp AL HABTOOR to open Israel office (Globes)
  • LODZIA-ROTEX INVESTMENT LTD to sell 28 commercial real estate assets (2,500,000R2) in Tennessee for$20.5 million. 
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Commercial Real Estate Opportunities

  • For sale  2,200M2 commercial building in Petah Tikva, in the center of Israel.
  • For sale two floors (2,300M2) out of five, in a commercial building in the center of Tel Aviv.
  • For Sale in Tel Aviv 600M2 floor, (one out of 4) + 13 parking spaces.

  • For lease, in Holon, 1,500M2 office space ready to occupy 
  • For lease, in Alon Tower Tel Aviv 156M2 office space, high floor 5 rooms.
  • For lease, in  Or Yehuda, 600M2 office space ready to occupy.
  • For lease, in  in Petah Tikva 1,700M2 office space ready to occupy.
  • For lease, in Kadima, commercial units in a new neighborhood commercial center.
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