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1、MarketOutlookH1 2023ISRAELCBRE RESEARCHREPORTNational Outlook 2023 CBRE,Advisory Ltd.Real Estate Market Outlook 2022|IsraelContentsOverview of The Commercial Real Estate Market in Israel01The Economic and Business Conditions in Israel02Capital Market03The Hi-Tech Sector04Income Producing Real Estate
2、06Storage and LogisticsRegional Overview LogisticsAshdodModiin/ShohamCaesareaHaifa07Retail Market05Office MarketRegional Overview Office SpaceTel AvivRamat GanPetach TikvaHerzliyaRaananaBnei BrakHolonJerusalem01National OutlookThe Economic and Business Conditions in Israel0.002.004.006.008.0010.0012
3、.----------202305-2023Medium-Sized BuisnesesBig-Sized BuisnesesMicro-Sized BuisnesesSmall-Sized BuisnesesOther ConsumersThe Economic and Business Conditions in Israel4 2023
4、 CBRE,Advisory Ltd.CBRE RESEARCHTheKeyStory:The ProtestAgainstJudicialReformThroughout the first 6 months of 2023,a social protest against the Governments proposed judicial reform,has been taking place.This protest movement has produced a number of effects on macro conditions in Israel,for example:r
5、eports of a drop in the scope of investments by foreign investors,the transfer of money out of Israel,publication of warnings by credit rating agencies,regarding the possible consequences to the local economy and so forth.During the first half of the year,the Israeli shekel weakened vis-vis the Doll
6、ar and the Euro,from a rate of 3.5 and 3.75 year end 2022 to the rate of 3.7 and 4.01 respectively in the month of July 2023 and foreign exchange trade in these currencies has been characterized by great volatility.Market Outlook H1 2023|ISRAELChange in the Average Interest Rate on Bank Credit-in th
7、e Unindexed Shekel Sector H1 2023-2020Source:Bank of Israel-3.0-2.0-1.00.01.02.03.04.05.06.001/1307/1301/1407/1401/1507/1501/1607/1601/1707/1701/1807/1801/1907/1901/2007/2001/2107/2101/2207/2201/2307/23Consumer Price Index in percentage net of housing(annual cumulative)Consumer Price Index(annual cu
8、mulative)Inflation targetInflation target5 2023 CBRE,Advisory Ltd.CBRE RESEARCHThe price increase of apartments stopped,and in some markets,we see indications of the beginning of a reduction to the prices of apartments especially in the prices of new builds.Alongside this,we see a reduction in build
9、ing starts of residential projects and as a result of this,we can anticipate a reduction in the future supply of apartments for sale in Israel,which may,in turn,at a later stage,fuel an additional increase to prices of apartments.During the first half of 2023,the trend of annual inflation increase c
10、ontinues,and with this,the Bank of Israel continues to tighten its monetary policy and to increase interest rates similar to the policies of other central banks in the world.Inflation continues its trend upwards during the first half of 2023 the Consumer Price Index rose by approximately 2%,and 4 se
11、parate interest rate hikes were carried out taking the interest rate from 3.75%to a rate of 4.75%.However,at the beginning of July 2023,the Bank of Israel decided for the first time after 10 continuous increases-to keep the interest rate at its present level,without further increase.During the last
12、months,we have also seen a substantial slowing down in the real estate market performance.This slowing down is illustrated by the absence of offers to purchase land(for all purposes)in the tenders published by the Israel Land Authority and by the low winning prices determined by the Israel Land Auth
13、ority assessors.This phenomenon extended on the backdrop of the sharp increase of interest rates that led to the substantial increase in financing costs.Another example of the position of the real estate market is illustrated by the residential real estate market-which is also suffering from a perio
14、d of stagnation with a slump in the purchases of apartments and the reduction in mortgage taking,after more than a decade of house price increases.33.23.43.63.844.201/2202/2203/2205/2206/2208/2209/2210/2212/2201/2302/2304/2305/23USDEuroStagnation in the Real Estate MarketMarket Outlook H1 2023|ISRAE
15、LConsumer Price Index(general and Core CPI net of home prices),Annual RateUSD-Euro RatesSource:Bank of Israel02National OutlookCapital Markets7 2023 CBRE,Advisory Ltd.CBRE RESEARCHThe first half of 2023 saw increases in the stock markets in the USA and Europe,assisted by the onset of a downward tren
16、d of inflation and a break in interest rate hikes by the Federal Bank.The markets show strong growth,assisted by the technology sector,in particular the Artificial Intelligence field,indicating that the fear of recession may be behind us.NASDAQ rose by approximately 32%,S&P 500 index rose by approxi
17、mately 16%and the Euro 600 index rose by approximately 9%.In Israel,with the backdrop of the judicial reform,and the accompanying social and political protests,the market has not recovered and presents a shortfall in performance with falls of between 2%-3%in the principal indexes of TA 35 and TA 125
18、.212022H1 2023 3528%-11%26%-9%-2.7%90150%18%29%-18%-0.6%12554%-3%26%-12%-2.1%SME 6013%16%24%-33%0.3%53%29%6%-33%1.2%107%39%4%-30%9.8%169%38%7%-27%9.8%,-5104%-22%58%-4%0.7%165%-5%46%26%-4.6%Performance of Key Indices From the Beginning of the Year to the End of the First Half of 2023(D
19、aily data)Market Outlook H1 2023|ISRAEL212022H1 2023Tel Aviv-3528%-11%26%-9%-2.7%Tel Aviv-90150%18%29%-18%-0.6%Tel Aviv-12554%-3%26%-12%-2.1%Tel Aviv-SME6013%16%24%-33%0.3%TA-Growth53%29%6%-33%1.2%Tel Aviv-Tech Elite107%39%4%-30%9.8%Tel Aviv-Technology169%38%7%-27%9.8%Tel Aviv Banks-5
20、104%-22%58%-4%0.7%Tel Aviv-Real Estate165%-5%46%26%-4.6%Comparison of Annual Returns,Leading Indices in Israel Source:Bank of IsraelCapital MarketsSource:Tel Aviv Stock Exchange-10%-5%0%5%10%15%20%25%30%35%03/01/202303/02/202303/03/202303/04/202303/05/202303/06/2023S&P500Tel-Aviv 125NASDAQDow JonesS
21、TOXX Euro 6008 2023 CBRE,Advisory Ltd.CBRE RESEARCHCompanyGav YamAmot InvestmentAzrieli GroupSella Capital NadlanMelisronAnnual 2022Q1 2023Annual 2022Q1 2023Annual 2022Q1 2023Annual 2022Q1 2023Annual 2022Q1 2023Value of income-yielding assets(ILS)9,837,00010,100,00016,623,000,00016,649,000,00026,000
22、,000,00025,100,000,0005,130,000,0005,160,000,00019,595,000,00019,947,000,000Properties in development717Leverage rate53.3%54.9%42%43%33%35%56%60%42.8%43.6%ALS Lease agreements without properties in development4.40 Years4.50 Years5.50 Years5.40 Years6 Years5.70 Years4.85 Years4.94 Years3.6
23、5 Years9.60 YearsIncome-yielding spaces(Sqm)1,090,0001,100,0001,150,0001,150,0001,377,0001,377,000524,000524,000800,000812,000Occupancy rate98%98%94.4%94.2%98%98%96%95%98.7%98.4%Weighted average effective interest rate indexed to the CPI1.30%1.10%1.61%1.60%1.90%2%1.69%1.70%2.05%2.24%Average capitali
24、zation rate for the value of income-yielding assets6.30%6.40%6.20%6.23%6.83%6.81%6.71%6.78%6.95%6.95%NOI Annual(ILS)555.000.000931,000,0001,953,000,000288,300,0001,224,000,000NOI Q1(ILS)133,000,000155,000,000219,000,000247,000,000456,000,000525,000,00066,000,00079,600,000292,000,000325,000,000FFO-Fo
25、recast for 2023(ILS)360,000,000785,000,000230,000,0001,360,000,000Market Outlook H1 2023|ISRAELCompanies financials03National OutlookHi-Tech Sector10 2023 CBRE,Advisory Ltd.CBRE RESEARCH$952$738$579$951$1,105$1,453$1,065$652$899$986$1,405$1,210$1,033$1,521$1,583$1,735$1,492$1,999$2,107$2,200$2,688$2
26、,169$2,630$2,935$5,450$6,455$5,682$8,242$5,828$4,809$2,654$2,151$1,719$1,78020002120222023The Volume of Capital Raised(in billions of$)by Israeli Start-ups Between H1 2023-2015Source:IVC-LeumiTech Israeli Tech Review Q1/2023 Market Outlook H1 2023|ISRAEL67
27、28534966403522000212022 H1 2023Volume of Start-UpsEstimatedVolume of Start-Ups Opened Between H1 2023-2015The hi-tech sector has been characterized in the first half of 2023,by a downturn in activities as compared to 2022.On the backdrop of the worldwide crisis in this sector a
28、nd the public struggle against the proposed judicial reforms in Israel,the total investment raised by Israeli hi-tech companies during the first half of 2023,dropped by 70%compared to the same period last year,with a 50%drop in the number of transactions.Compared to the first half of 2022 when the d
29、ownturn in the hi-tech sector was attributed to the general global situation(which also effected the hi-tech sector in the USA)the first half of 2023 recorded an increase of approximately 30%in investments raised by US hi-tech companies.This fact teaches us that the social crisis in Israel,brought o
30、n by the judicial reform,has considerable effect on the local Israeli market.The number of start up companies incorporated each year is also showing a steady decline estimations state that in the first half of 2023,352 companies began activities.With respect to the employment data in the hi-tech sec
31、tor we see a stabilization and a reduction in redundancies,after the wave of extensive lay offs in the hi-tech sector during the second half of 2022.Source:IVC-LeumiTech Israeli Tech Review Q2/2023 The Hi-Tech Sector04National OutlookIncome Producing Real Estate12 2023 CBRE,Advisory Ltd.CBRE RESEARC
32、HCorporate Bond Yields Key Indices(daily data)After 2022,when we saw a drop in the share prices of the Israeli income producing real estate companies(due to the hike in interest rates),during the first half of 2023,these income producing real estate companies show relative stability.However,followin
33、g the interest rate hikes,inflation and downturn in the hi-tech sector,we can assume that the income producing real estate companies which are already today reporting a downturn in demand and difficulties in tenant negotiations will be effected in the second half of 2023 and will show a decrease in
34、occupation and rental income,primarily in the office market.Today,the market is saturated with offices for rent,most of which have been put on the market by tenants themselves seeking sub-tenants,so we will not see an overall reduction in actual occupancy rates.-6.00%-4.00%-2.00%0.00%2.00%4.00%6.00%
35、8.00%10.00%31/12/202030/06/202131/12/202130/06/202231/12/2022Banks-linked Tel BondTel Bond 40 Index DataTel Bond 20 Index DataMarket Outlook H1 2023|ISRAELSource:Tel Aviv Stock ExchangeIncome Producing Real Estate05Overview of The Commercial Real Estate Market in IsraelThe Office Market14 2023 CBRE,
36、Advisory Ltd.CBRE RESEARCHSource:CBSMarket Outlook H1 2023|ISRAEL60708090001/2004/2007/2010/2001/2104/2107/2110/2101/2204/2207/2210/2201/2304/23Information&CommunicationFinance&InsuranceProfessional scientific and technical servicesManagement&Support ServicesTotal of salaried jobs in offi
37、ce-oriented industriesNumber of employee vacancies in office-oriented industries since the outbreak of the Corona crisis,January 2020 index=100During the first half of 2023,the office market is showing effects of the vulnerability of the hi-tech sector a reduction in investments in local companies a
38、nd the transfer of money(company funds)outside of Israel,with the backdrop of the judicial reforms and the social crisis following these proposed reforms.The office market in Tel Aviv,favored by the leading hi-tech companies,is still not showing signs of widespread harm,but it is likely to suffer su
39、bstantial difficulties in the upcoming period.We note a first indication of this downturn Facebook left its offices in Azrieli Sarona building,vacating approximately 30 thousand sqm of office space.As of April 2023,the number of jobs in the economy(in all of the branches)stood at 3,963,300,comprisin
40、g of an annual reduction of approximately 1.67%as compared to the number of jobs at the beginning of the year,and an increase of approximately 3.79%compared to the number of jobs in the economy immediately prior to the outbreak of COVID-19.An analysis of the number of jobs in the sectors of office s
41、taff shows a more moderate annual growth of approximately 2.15%,however compared to the number immediately prior to the outbreak of COVID-19,an increase of approximately 3.46%.The Office Market05Regional Overview Office SpaceTel AvivRaananaRamat GanBnei BrakPetach TikvaHolonHerzliyaJerusalem01020304
42、0516 2023 CBRE,Advisory Ltd.CBRE RESEARCHMarket Outlook H1 2023|ISRAELTel AvivIn the hi-tech capital of Israel,there are areas of employment that have transformed Tel Aviv into an international metropolis.This area is characterized by modern skyscrapers,primarily leased to leading hi-tech companies,
43、large law offices and financial institutions.The principal submarkets of office space can be found in the following areas Sarona,Tel Aviv centre of Rothschild Blvd,city centre,YgalAlon Street and the Menachem Begin axis.Continuing the trend of past years,the city continues to develop southwards.Resi
44、dential development began this momentum and now,the office sector has followed suit.The neighbourhoods of South Tel Aviv are developing and we can see an increased demand in those areas.This change is fuelled by scarcity of land in the city that is available for development and Tel Aviv 5000 City Pl
45、an which permits construction along the mass transport system.Tel Aviv continues to be developed alongside the construction of the light rail system and the substantial reduction in parking regulations.*Prices are Core&ShellMenachem Begin Axis Employment zone that spans the length of Menachem Begin
46、Way.This forms the striking sky line of Tel Aviv and is,today,the principal business centre of the city.This business area is highly accessible via the Ayalon highway interchanges,railway stations and in the future light rail stations and the planned blue M1 metro line which will travel along the en
47、tire axis.Tenant Mix in the Area:This area is characterized by modern skyscrapers,primarily leased to leading hi-tech companies,large law offices and financial institutions.Leading companies in the area:FBC&Co.,Samsung,Deloitte,PWC,Nike01Sarona submarket Kaplan Street from the north,Menachem Begin W
48、ay from the east,Ibn Gabirol Blvd from the west and Hashmonaim Street from the southThe majority of the office buildings line both sides of HaArbaa StreetTenant Mix in the Area:This area is characterized by modern skyscrapers,primarily leased to leading hi-tech companies,large law offices,freelancer
49、s,financial institutions and government agencies.Leading companies in the area:Amazon,Facebook,KPMG,Cato Networks02Office Submarkets:Average occupancy rate97%Average rents(m/offices)120 ILSAverage occupancy rate98%Average rents(m/offices)140 ILS17 2023 CBRE,Advisory Ltd.CBRE RESEARCHMarket Outlook H
50、1 2023|ISRAELHassan Arfa Submarket located in the heart of the city of Tel Aviv,between Yitzhak Sadeh Street from the north,Menachem Begin Way from the west,HaMasger Street from the west and David ChachmiStreet from the south Today,part of this complex incorporates new office buildings and part can
51、be found in a construction boom.The area is accessible and in the near future the red line of the light railway will pass through.Tenant Mix in the Area:This area is characterized by modern skyscrapers,primarily leased to leading hi-tech companies,large law offices and financial institutions.Leading
52、 companies in the area:NVIDIA,Monday,Yotpo,HFN03Tel Aviv04Yigal Alon Submarket located along Yigal Alon Street,between Yigal Alon Street from the west,Aminadav Street from the south,Tozeret Haaretz from the north and Haaskala Street from the east.In this submarket,we find new office buildings alongs
53、ide old properties.This submarket is very accessible being located adjacent to Ayalon freeway junctions and will be close to future metro stations(M2,M1)and the light rail purple line.Tenant Mix in the Area:This area is characterized by modern skyscrapers,primarily leased to leading hi-tech companie
54、s,large law offices,financial institutions and advertising agencies.Leading companies in the area:Google,PayPal,Motorola,Check Point,Palo AltoRothschild Blvd Submarket(heart of the city)-Tel Aviv city centre southwards and to the west reaching Neve Zedek neighborhood and the beachfront.A variety of
55、architectural styles of buildings can be found in this submarket,reflecting the different periods of development of the city of Tel Aviv.This area is accessible and will be served by the red line of the light railway.Tenant Mix in the Area:This area is characterized by modern skyscrapers,some of whi
56、ch are mixed use,alongside buildings for historic preservation and older office buildings.The tenants in this area are primarily start up companies,financial institutions and companies involved in capital markets.Leading companies in the area:Facebook,Soluto,Visa,Artlist05*Prices are Core&ShellAvera
57、ge occupancy rate95%Average rents(m/offices)100 ILSAverage occupancy rate98%Average rents(m/offices)110 ILSAverage occupancy rate98%Average rents(m/offices)125 ILS18 2023 CBRE,Advisory Ltd.CBRE RESEARCHRamat GanMarket Outlook H1 2023|ISRAELThe majority of office space in Ramat Gan is located in the
58、Diamond Exchange complex.The Diamond Exchange is the prime business area ofRamat Gan,due to its strategic location boundaries of 3 cities namely,Ramat Gan,Givatyim and Tel Aviv.Many deem Ramat Gan to even be an“extension”of Tel Aviv.The complex is undergoing substantial development following approva
59、l of the Outline Plan RG/1800 that increases buildingrights and encourages urban renewal and the construction of high-rise buildings.In parallel,we observe the increased construction standards inthe new towers in the complex.During the first half of 2023,an agreement was signed for the construction
60、of approximately 250,000 sqmcomprising of between 90-100 floors Mega Project the companies partnering in this project are Ayalon,ValorByron and B.S.R.The Diamond Exchange Complex This area is situated between the axis of Jabotinsky Street from the south,Bialik Street from the north,Aba Hillel Way fr
61、om the east and the Ayalon freeway from the west.The area is very accessible via Ayalon freeway and the Savidor Central train station.Inaddition,metro lines MI and M2 and the light rail red line are intended to pass through this area.There is a large supply of Class B type office buildings,as well a
62、s high occupancy rates in the Class A type office buildings.Tenant Mix in the Area:This area is characterized by skyscrapers.The tenants in this area are primarily financial institutions,large law offices and hi-tech companies.Leading companies in the area:HSBC,Mobileye,F5,Taboola0101Average occupan
63、cy rate98%Average rents(m/offices)100 ILS*Prices are Core&Shell19 2023 CBRE,Advisory Ltd.CBRE RESEARCHPetach Tikva010203Market Outlook H1 2023|ISRAELThe majority of office space in Ramat Gan is located in the Diamond Exchange complex.The Diamond Exchange is the prime business area of Ramat Gan,dueto
64、 its strategic location boundaries of 3 cities namely,Ramat Gan,Givatyim and Tel Aviv.Many deem Ramat Gan to even be an“extension”of Tel Aviv.Thecomplex is undergoing substantial development following approval of the Outline Plan RG/1800 that increases building rights and encourages urban renewaland
65、 the construction of high-rise buildings.In parallel,we observe the increased construction standards in the new towers in the complex.During the first halfof 2023,an agreement was signed for the construction of approximately 250,000 sqm comprising of between 90-100 floors Mega Project the companiesp
66、artnering in this projectare Ayalon,Valor Byron and B.S.R.Kiryat Arieh The upcoming commencement of passenger services by the red line of the light railway is expected to provide a real boost to the development of the employment areas in Petach Tikvah.Many new projects are commencing and tens of tho
67、usands of sqm will come into market in this area.The area is easily accessed,due to the proximity of main transport systems,the proximity of the train station(close to the football stadium)and in the future,the red line of the light rail system which will operate through the area.Jabotinsky axis del
68、imits the area from the south,Route 4 from the west and the train tracks from the north.Tenant Mix in the Area:This area,which in the past was characterized as a traditional industrial zone,over the years has been transformed into a leading area comprising of office complexes,featuring prominent hi-
69、tech companies.Much of the traditional industrial areas continue to work and over time,some are developed,renewed and convert into new projects.Leading companies in the area:Intel,Marvell,CyberArk,Payoneer,IBM,Intuit 01The Three Principal Business Areas of Petach Tikva:02Sivim Industrial Area locate
70、d at the western area of Petach Tikvah;an industrial area characterized primarily by industrial buildings and older office buildings alongside new constructionTenant Mix in the Area:older buildings alongside new builds,hi-tech companies,freelancers,insurance companies.Leading companies in the area:A
71、IG,Align Technologies,Ribbon,Docusign,TATASegula Area An industrial area,also known by the name of Yarkon Business Park,located in the north east part of the city.In this area,factories for heavy industry are located,large commercial areas(Power Centre),halls and event complexes.Class A type office
72、buildings are NOT located in this area.Tenant Mix in the Area:older buildings alongside new builds,hi-tech companies,freelancers,insurance companies.Leading companies in the area:Airobotics,Isotopia Molecular,Comparts,Tadiran03*Prices are Core&ShellAverage occupancy rate90%Average rents(m/offices)55
73、 ILSAverage occupancy rate60%Average rents(m/offices)45 ILSAverage occupancy rate90%Average rents(m/offices)40 ILS20 2023 CBRE,Advisory Ltd.CBRE RESEARCHHerzliya01Market Outlook H1 2023|ISRAELIn March 2023,objections were filed against Outline Plan HR/2440 which plan provides for the renewal of the
74、industrial area of HerzilyaPituach.Most of these objections were not accepted and the plan,that increases building rights by approximately two million sqm foremployment purposes continues with the approval process.Alongside approximately 300,000 sqm for retail and entertainmentpurposes and approxima
75、tely 200,000 sqm for tourism,the plan provides for a substantial change to the character of the industrial area-transitioning the area to one being densely populatedwith high rise towers.The business area of Herzliya Pituach is situated in the south western portion of the city and is recognized as t
76、he prime business centre of the city.The area extends for 850 dunam,it is easily accessed the main entry is via the Shira junction,a train station is situated in close proximity and the area is built out,alongside Route 2.The light rail green line is expected to run through this area.Tenant Mix in t
77、he Area:The area is characterized by new designated office complexes for hi-tech companies alongside old buildings.Leading companies in the area:SolarEdge,Apple,GM,Pfizer,Microsoft,Matrix,J.P.Morgan,AppsFlyer01Average occupancy rate96%Average rents(m/offices)90 ILS*Prices are Core&Shell 2023 CBRE,Ad
78、visory Ltd.Raanana0102Market Outlook H1 2023|ISRAELThe city of Raanana provides an alternative for hi-tech companies that wish to locate their offices in the Sharon area.Route 531 and the railway have considerably improved accessibility to the city.Kiryat Etgarim the industrial area of Kiryat Etgari
79、m is located in the north eastern area of the city,extending 900 dunam.Kiryat Etgarim is the prime business centre of the city.Presently,Kiryat Etgarim is accessible via the Kfar Saba-Raanana North junction and in the future via the north Raanana ring road and the M1 metro line.Weizman Blvd provides
80、 the southern boundary,Keren Hayesod Blvd from the west and agricultural land from the north.Tenant Mix in the Area:The area is under constant development and is characterized by built to suit office buildings for hi-tech companies,older office buildings alongside traditional(and old)industrial stru
81、ctures.Leading companies in the area:Amdocs,Elbit,SAP,DriveNets,NVIDIA,NCR01South Raanana Junction business area located by South Raanana Junction adjacent to the city of Kfar Saba.There are many pharmaceutical companies and hi-tech companies located in this area.Tenant Mix in the Area:hi-tech compa
82、nies,older office buildings alongside modern office buildings.Leading companies in the area:Red Hat,Ness Technologies,Zoom Info02*Prices are Core&ShellAverage occupancy rate90%Average rents(m/offices)60 ILSAverage occupancy rate92%Average rents(m/offices)60 ILSThe Principal Business Areas in Raanana
83、 are divided into the following 2 locations:22 2023 CBRE,Advisory Ltd.CBRE RESEARCHBnei Brak01Market Outlook H1 2023|ISRAELBnei Brak was previously known for the multiple“Buyers Group”projects located in the city;today it is known for its new towers with a higherstandard of finishings.These towers a
84、re often developed by financial institutions(which own majority rights in these assets)thus permitting,withgreater ease,the lease of large floor plates to anchor tenants.The LYFE Project,owned by Ashtrom and Dan Real Estate,populated the first twotowers and construction of the third tower is expecte
85、d to commence.The Hachsharat HaYishiv complex is in advanced stages of population,theconstruction of the BBC Tower is expected to end this year;in parallel,the commencement of passenger services by the red line of the light railwayis anticipated,along the nearby Jabotinskyaxis.The BBC area is the pr
86、incipal business are of Bnei Brak BBC is the central business area of the city,located in the north west area of the city,forming a boundary along 3 cities Bnei Brak,Ramat Gan and Tel Aviv.The BBC area extends for approximately 900 dunam.The area is bound by Jabotinsky axis to the south,northwards S
87、heshet Hayamim Way and Aba Hillel and Ben Gurion Way from the west.This business area is characterized by modern office buildings.The area is easily accessible,in the future the red line of the light railway will also serve the area and a station of the railway is located close by.Tenant Mix in the
88、Area:The majority of the office space is leased to freelancers.Leading companies in the area:Comax,Kaltura,Max,eToro,Powerball01*Prices are Core&ShellAverage occupancy rate85%Average rents(m/offices)55 ILS23 2023 CBRE,Advisory Ltd.CBRE RESEARCHHolon01Market Outlook H1 2023|ISRAELOver the last few ye
89、ars,Holon became a significant focus for business activities.Due to the new transportation facilities connecting of Route 4junctions and stops of the future green line of the light railway this area has been transformed from an industrial zone to an area full of officebuildings.Industrial Zone C loc
90、ated in the eastern area of the city and is,in fact,the only modern business area of Holon.This area extends for approximately 700 dunam;it is easily accessed the principal entry point is via the East Holon junction.The areas boundaries are Route 4 and from the south Yerushalim Blvd.Presently,this a
91、rea is seeing a development and construction boom.The green line of the light railway will serve this area.Tenant Mix in the Area:The majority of the office space in this area,is leased to freelancers and to financial institutions.Leading companies in the area:Perion,Sapiens,Bezeq,Halman-Aldubi,Tald
92、or,Compugen01*Prices are Core&ShellAverage occupancy rate70%Average rents(m/offices)50 ILSThe Holon Business Area is enjoying a development boom:24 2023 CBRE,Advisory Ltd.CBRE RESEARCHJerusalem01020304Market Outlook H1 2023|ISRAELHar HotzvimThis industrial area is located in the north eastern area o
93、f Jerusalem and is presently deemed to be prime,central business area of the city.The industrial area of Har Hotzvim extends for approximately 530 dunam and is easily accessed the Golda Meir Junction creates the south eastern border of the industrial area,Begin Way from the north west and route 1 is
94、 also close by.The blue line of the light rail will also serve this area.Tenant Mix in the Area:This area is characterized by older office buildings that are mostly leased to hi-tech companies,government offices,freelancers and manufacturing facilities.Leading companies in the area:Mobileye,Siemens,
95、NDS,Matrix,Intel,Beck-Tech0102Givat Shaul located in the west of Jerusalem.This business area is characterized by traditional industrial facilities and various government offices,alongside many new builds due to the recent construction boom.The green line of the light rail system in Jerusalem has re
96、cently commenced infrastructure works for its establishment.The green line will serve this industrial area and connect it to the centre of the city.Tenant Mix in the Area:freelancers,manufacturing facilities and government officesLeading companies in the area:Barlev Development,Registrar legacies,Mi
97、nistry of FinanceCity Entrance Submarket Initial establishment stage,located adjacent to the iconic Chords Bridge and the Yitzhak Navon train station.This area will compete with Har Hotzvim industrial area for the title of the prime business location of Jerusalem.The area will comprise of a signific
98、ant number of buildings for mixed-use business,retail,residential and hotels.Talpiot The Talpiot industrial area is located in south eastern Jerusalem.The traditional industrial spaces that previously characterized this area have been transformed,over the years to mostly retail and office space.03Je
99、rusalem is the most highly populated city in Israel,with a variety of industrial areas,employment zones and advanced hi-tech parks.The City Entrance submarket is gaining prominence with the granting of the first building permit for a tower(the Marom Tower)comprising of 40 floors 80,000 sqm for emplo
100、yment and retail purposes.This is the first building out of twenty towers that are planned for this submarket,adjacent to the Yitzhak Navon train station and 3 lines of the light railway.04*Prices are Core&ShellAverage occupancy rate92%Average rents(m/offices)70 ILSAverage occupancy rate90%Average r
101、ents(m/offices)70 ILSAverage occupancy rate90%Average rents(m/offices)80 ILSAverage occupancy rate90%Average rents(m/offices)70 ILSThe Principal Business Areas in the Capital of Israel are:06Overview of The Commercial Real Estate Market on IsraelStorage and Logistics26 2023 CBRE,Advisory Ltd.CBRE RE
102、SEARCH30354045505520002020212022H1 2023Average rent for logistics in Israel H1 2023-2015(ILS/m)Modiin/ShohamAshdodCaesareaHaifaMarket Outlook H1 2023|ISRAELStorage and LogisticsOverview of The Present Situation of The Logistics MarketDuring the first half of 2023,with the backd
103、rop of the continued interest rate hikes by the Bank of Israel,the logistics market is characterized by a scarcity of actual transactions alongside a stop of the trend of rising prices for land for logistical purposes.In the popular areas found along Route 6,surrounding the Israeli ports and alongsi
104、de wide highways the price of land remains high,however,we have not observed price increases compared to those prices recorded in the second half of 2022.The rate of increase to rental prices for logistic buildings and open storage areas has also slowed down,and with it the trend of erosion to the y
105、ield in the market.Accordingly,we are likely to see the entry of financial institutions to this market,for example insurance companies will seek to partner in development projects in the logistics market.06Regional Overview LogisticsAshdodModiin/ShohamCaesareaHaifa28 2023 CBRE,Advisory Ltd.CBRE RESE
106、ARCH010203Average rent(m/storage)Average(Price/1,000 m)City55 ILS7.5 Million ILSAshdod50 ILS6.5 Million ILSModiin/Shoham45 ILS4.0 Million ILSCaesarea40 ILS3.5 Million ILSHaifa04*New logistics centers Class A Market Outlook H1 2023|ISRAELRegional Overview LogisticsAshdodThe proximity to the two Ashdo
107、d ports constitutes the principal pulling factor for the storage and logistics activities in the Ashdod area.We note a scarcity of transactions during the first half of 2023,alongside the continuing development and growth of the new port,which is experiencing a very partial scope of container moveme
108、nt and a low level of activity as compared to that which had been expected.To the rear of the port,a corner stone was laid evidencing the establishment by Ewave,of the largest automatic logistical centre in the country.It is estimated that this centre requires an investment of approximately 1 billio
109、n NIS.Tenant Mix in the Area:This area is characterized by logistical companies that are active in the port,bond warehouses,and bonded facilities,storage of open containers.Leading companies in the area:Ewave,FridensonModiin/ShohamThe proximity of this park to Route 6,the Ben Gurion International Ai
110、rport and its central location between the central Dan Region,Jerusalem,north and South of Israel constitutes the principal reason attracting many companies to the area.Tenant Mix in the Area:This area is characterized by companies operating independent central logistic facilities for their national
111、 activities.Leading companies in the area:Yohananoff,Tnuva,Shufersal,Teva-SLECaesareaThe industrial area of Caesarea is characterized by storage facilities for manufacturing companies alongside importers and distributors and joint ventures with the Caesarea Assets Corporation.Tenant Mix in the Area:
112、This area is characterized by storage facilities for companies involved with the import,distribution and retail,and industrial companies.Leading companies in the area:Diplomat,Decathlon,Fritz,Caesarea Assets CorporationHaifaThe proximity to the 2 ports in Haifa and the Haifa airport constitutes the
113、principal pulling factor for the storage and logistical activities in the Haifa area.We note a scarcity of transactions during the first half of 2023,alongside the continuing development and growth of the new port,which is experiencing a very partial scope of container movement and a low level of ac
114、tivity as compared to that expected.Tenant Mix in the Area:This area is characterized by logistical companies that are active in the port,bond warehouses,and bonded facilities,storage of open containers and chemical companies.Leading companies in the area:Fridenson,Overseas07Overview Of The Commerci
115、al Real Estate Market In IsraelThe Retail Market-10-5055401.1.221.2.221.3.221.4.221.5.221.6.221.7.221.8.221.9.221.10.221.11.221.12.221.1.231.2.231.3.231.4.231.5.231.6.231.7.2330 2023 CBRE,Advisory Ltd.CBRE RESEARCHThe Change in the Composition of Credit Card PurchasesMarket Outlook H1 202
116、3|ISRAELRetail MarketThe first half of 2023 shows steady trade in the shopping malls and retails centres,and also online shopping(supported by increase in credit card purchases).The increase that we saw during 2022 continues during the first half of 2023,however with a more moderate increase,on the
117、backdrop of inflation and recession fears,which may reverse this trend by year end.Copyright 2023.All rights reserved.This report has been prepared in good faith,based on CBREs current anecdotal and evidence based views of the commercial real estate market.Although CBRE believes its views reflect ma
118、rket conditions on the date of this presentation,they are subject to significant uncertainties and contingencies,many of which are beyond CBREs control.In addition,many of CBREs views are opinion and/or projections based on CBREs subjective analyses of current market circumstances.Other firms may ha
119、ve differentopinions,projections and analyses,and actual market conditions in the future may cause CBREs current views to later be incorrect.CBRE has no obligation to update its views herein if its opinions,projections,analyses or market circumstances later change.Nothing in this report should be co
120、nstrued as an indicator of the future performance of CBREs securities or of the performance of any other companys securities.You should not purchase or sell securitiesof CBRE or any other companybased on the views herein.CBREdisclaims all liability for securities purchased or sold based on informati
121、on herein,and by viewing this report,you waive all claims against CBRE as well as against CBREs affiliates,officers,directors,employees,agents,advisers and representatives arising out of the accuracy,completeness,adequacy or your use of the information herein.ContactsSmadar PomerantzAdministration MHadar MuchnikDesign&Chaim AgiHead of Capital Markets&RTomer EyalyCapital Markets&RRon AgadiCapital Markets&R