Big Shopping Centers Plans Senior Housing Conversion for Second Tower in Ramat Hasharon
Big Shopping Centers is moving forward with plans to build the second tower at the Big Fashion Glilot complex near Ramat Hasharon, despite a lengthy construction freeze. The company is submitting a new proposal to the Tel Aviv District Planning and Building Committee next week to convert nearly 50,000 square meters of the planned office space into senior housing. This change reflects the ongoing weakness in the office market, driven by factors such as the tech sector slowdown, high office supply in the Tel Aviv metropolitan area, and the rise of remote work.
The Big Fashion Glilot shopping center is set to officially open in February 2025, located just north of Tel Aviv-Jaffa near Cinema City. The existing office tower above the mall, partly owned by Allied and Big, currently has about 15% of its 80,000 square meters of office space vacant. In May 2024, a plan was approved to add significant office space rights to the complex, allowing a total of 108,000 square meters of office areas. However, Big stated in its Q1 2024 report that due to market uncertainty and geopolitical conditions, it did not intend to proceed with the second tower's office construction at that time.
The new plan proposes to reduce office space by 46,507 square meters and replace it with senior housing, allocating roughly half the tower's 50 floors to each use. The design includes full separation of the two functions, including separate parking, elevators, lobbies, and entrances. No additional building rights or parking spaces are requested, with the mixed-use tower relying on existing parking facilities. Senior housing floors are expected to be in the lower section, with offices above.
This would be Big's first project combining office and senior housing spaces, expanding its already active senior housing business, which is expected to generate about 20 million shekels in revenue in 2025. Local authorities, including the Ramat Hasharon municipality and district planners, support the plan, viewing it as a way to activate the stalled project and diversify land use. The local committee recommended the plan's deposit in May 2026, with a key condition that senior housing units be under unified ownership.
Construction of the new tower is expected to take at least three years, during which the office market may evolve further. Big also has plans for a third tower in the complex, but that remains a longer-term vision. The shift to senior housing reflects a strategic move to mitigate risks amid uncertain office demand and to utilize building rights more effectively.
