Overcrowded Office Market
Some 50,000 sq. m. of office space are currently in various stages of construction in the Tel Aviv area. An estimated 2,500 to 4,000 sq. m. are available for immediate occupation and approximately 15,000 sq. m. will be available within six months.
With so much supply, one would expect building owners to be falling over each other to attract tenants and that prices would plummet. This however, is not what is happening. Oversupply is having only a marginal downward influence on prices.
Reasons for Lack of Price Decline