Covid-19 wreaking havoc with Tel Aviv's commercial real estate

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Jul 20, 2020 | News | Jerusalem & Area
Covid-19 wreaking havoc with Tel Aviv's commercial real estate

The degree of harm done by Covid-19 to the commercial real estate sector is beginning to become apparent. A report issued by commercial real estate services and consultancy group CBRE for the second quarter of 2020, which has been seen by "Globes," shows that tenants have departed from tens of thousands of square meters of commercial real estate premises in Tel Aviv and that rents have gone down on average by 10%. The average rent of commercial space in Tel Aviv has returned to what it was in 2013, the report says. Worst hit are shopping malls, enclosed shopping centers and street stores. In strip malls and power centers like those of Big Shopping Centers (2004) Ltd. the situation is less severe.


The report states, "In the (second) quarter, there was a substantial fall in commerce. The quarter began with the closure of stores and commercial centers due to the spread of the Covid-19 virus. As the quarter progressed, stores and shopping malls began to open under restrictions, mainly in the number of customers, which could enter the commercial area. These restrictions supported the continued trend in recent years of a rise in online commerce. New customers joined those who already buy online. Their exposure to these purchases is expected to strengthen the trend dramatically."

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