Arena Mall in Herzliya to Undergo Radical Transformation
The Arena Mall in Herzliya, which opened in 2003 with ambitions to be Israel's most luxurious shopping center, is set for a major overhaul after over two decades of struggling to realize its prime waterfront location. The mall, built on the Herzliya Marina, has changed ownership multiple times and undergone numerous renovations and concept changes, costing hundreds of millions of shekels, yet it has consistently failed to become the success it was envisioned to be.
The new plan, led by the Reality Group, aims to fundamentally change the mall's model. The enclosed structure will be redeveloped into seven independent, two-story buildings that open towards the sea and marina. Instead of numerous small shops, the focus will shift to attracting a limited number of large anchor tenants in sectors such as hospitality, high-end dining, culture and leisure, wellness, aesthetics, and maritime services. This comprehensive upgrade, estimated at NIS 200 million, will transform the property from a standard enclosed mall into an open, modern, and upscale business, commerce, and entertainment space on the waterfront, integrating with the marina and public areas.
Construction is slated to begin in October 2026 and will proceed in stages over approximately two years to minimize disruption to existing commercial and maritime activities. Each of the seven buildings, ranging from 3,500 to 6,000 square meters, will feature an open roof. The design emphasizes opening up the structure to the sky and creating passages between buildings, with facades facing the marina. The complex will include approximately 1,400 parking spaces and is located within walking distance of a planned light rail station.
The business model shift is significant, moving away from a traditional mall reliant on many tenants to a concept based on independent anchor assets. Each building will be designed for separate ownership and operation, allowing anchors to draw their own clientele while benefiting from the managed complex. Reality Group states this redevelopment aims to leverage Arena's prime location between the marina, beach, business district, and international companies, enhancing connectivity and accessibility.
This transformation is also part of a broader initiative by the Herzliya Municipality to revitalize the entire marina area, involving over NIS 100 million in upgrades to the marina's infrastructure, docking systems, promenade, and public spaces. The goal is to create a cohesive and attractive waterfront destination that connects the city, the promenade, the marina, and the beach, finally realizing the immense potential of the location.
