Weekly Newsletter Oct 26, 202026 Oct 2020
A bite from the Big Apple
Last week, Avison Young hosted a series of fascinating webinars for its customers and business partners. A few insights shared on those webinars:
• Only 10-15% of New York's workforce is currently occupying its office space.
• Unemployment in New York is currently 15%.
• The work field is estimated to return to its pre-COVID-19 status in approximately 5 years.
• The activity volume of commercial real estate will return to its pre-COVID levels around 2025.
• Historically, in over last few decades, there is a high correlation between the commercial real estate market / volume of activity, and the performance of the Fortune 500 Index (attached graph).
• The expected consequences of the pandemic: Percentage of the workforce will continue to work from home - they have discovered that it is possible; there is the technology and motivation to do it. In addition, corporations will try to save on real estate costs. On the other hand, the square footage allotted for each worker will rise.
• One way to shorten market recovery time is by developing new industries that will require office space, moving the industry to the city centers, inventing new needs for the world of commercial real estate.
• One driver of strong demand for commercial real estate in the recent past in Manhattan (like in Chelsea) was the creation of the right atmosphere, with a rich social life. From that atmosphere came demand for offices/employees /capital, etc..
• Finally, Israel isn’t the only place dominated by politics. New York has plenty of it, too. The real estate market is waiting for the presidential elections in nine days, and immediately after will be the NY mayoral election (there are currently dozens of candidates), and then it will be the new governor’s responsibility to act to change the trajectory of commercial real estate.
We will gladly send links to the fascinating zoom lectures of our partners at Avison Young.
Israeli commercial real estate deals
- AFI PROPERTIES LTD is investing $550 million in an office building and a mall in Brasov Romania.
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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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