Israel's Tallest Tower Begins Occupancy, Boosting Municipal Revenue

The BEYOND tower in Givatayim, Israel's tallest building at approximately 320 meters and 78 stories, is set to begin occupancy on October 4. The skyscraper is expected to generate around 40 million shekels annually in municipal taxes for Givatayim, a significant increase of about 14.5% to the city's existing tax revenue. The project, owned by Tidhar, Union, and Himanuta, is located in Givatayim's city center, adjacent to Tel Aviv and near major transportation routes, including Ayalon highways and the Savidor Central train station.

Despite its prime location and impressive scale, the tower is currently about 60% occupied, with contracts signed for an additional 10%. The BEYOND project comprises two towers: the 78-story office tower and a planned 60-story residential tower. The office tower offers 120,000 square meters of office space and 20,000 square meters of retail space, with a total project value estimated at 3.03 billion shekels. Key tenants include law firms Meitar, which leased 30,000 square meters, and Lipa Meir, along with gaming company Moon Active.

Experts attribute the slower-than-expected initial occupancy to several factors. Itai Safran, an economic consultant, notes that while the tower is centrally located, its accessibility is slightly less convenient compared to buildings directly on major transit hubs or within Tel Aviv's core business districts. The current market also presents challenges, with several other large office projects nearing completion in the Tel Aviv area, increasing competition.

However, industry professionals remain optimistic. Or Ben Tzvi-Klein, deputy CEO of Newmark NTM, considers 60% occupancy at the Certificate of Occupancy stage to be a strong indicator for a tower of this magnitude. He emphasizes that the tower is drawing tenants from existing prime office spaces in the vicinity, indicating a demand for Class A space. Sarit Yitzhakov, CEO of Colliers, adds that over 60% occupancy signifies the project is not operating at a loss and that full occupancy is a matter of time, especially as more deals are being negotiated.