Salesforce Negotiating Major Office Lease in Tel Aviv Tower

Technology giant Salesforce is in advanced negotiations to lease approximately 15,000 square meters, equivalent to 4-5 floors, in the Tohu Tower 2 in Tel Aviv. The company, which currently employs around 1,000 workers spread across multiple offices including Alon 1, Azrieli Sharona, and Tohu 1, plans to consolidate its operations into this single new location. The move is expected to occur next year after the completion of finishing works in the tower, which is being built by Amot and G-City and is nearing completion.

The deal's final sum has not been settled, but market estimates suggest a price of 130-165 shekels per square meter for the shell space. With a projected minimum five-year lease, the transaction is estimated to be worth over 140 million shekels. Salesforce Israel, established in 2011 following the acquisition of Israeli startup Navajo Systems, has become a significant R&D center for the international company, focusing on AI-driven marketing, language analysis, cybersecurity, and field service solutions. It has made ten acquisitions in Israel since its inception, most recently Loops.

Tohu Tower 2 will stand at 78 stories, offering 160,000 square meters of office space. Google has already secured the top 24 floors, approximately 60,000 square meters, on a ten-year lease. While no other deals in the tower have been publicly announced since Google's, Amot and G-City have indicated ongoing negotiations for other spaces.

In separate news, a tender for 722 housing units in Harish failed to attract any bidders, with some areas receiving no offers and others only a single bid below the minimum price. This tender, part of the Harish South area planned for 1,650 units, follows a previous failed tender for 240 units. However, land for 396 units was successfully marketed in December. Despite the tender's failure, the second-hand housing market in Harish saw a 42% increase in sales between March-August.

Additionally, the architectural design plan for the Eurobeach project by Euro Israel in Tel Aviv's Sde Dov area has been approved. The project will feature 260 apartments, offices, and commercial spaces, including a 40-story residential tower and a 4-story office building. Finally, two construction workers died in separate accidents this week: one in Herzliya after being hit by a falling object from a crane, and another in Ramat Gan when a crane arm collapsed. So far in 2024, 37 construction workers have died in Israel.