Class B office in Tel Aviv typically trades 30–60% below Class A on rent, with materially higher vacancy and a much harder lease-up profile.

• Class A asking: 220 ILS/sqft; Class B typically 30–60% below.
• Vacancy gap is structural — Class B carries the long tail.
• Repricing of Class B is the defining feature of post-2020 office markets.
• Conversion (residential / mixed-use) is now a real exit for Class B in many Tel Aviv submarkets.

TL;DR

• Class A asking: 220 ILS/sqft; Class B typically 30–60% below.
• Vacancy gap is structural — Class B carries the long tail.
• Repricing of Class B is the defining feature of post-2020 office markets.
• Conversion (residential / mixed-use) is now a real exit for Class B in many Tel Aviv submarkets.

Why the spread keeps widening

Flight-to-quality has compounded since 2020. Tenants signing 10-year leases default to certified, amenitised Class A — Class B can't compete on talent attraction or ESG scoring. Tel Aviv mirrors this global pattern.

Where Class B still wins

Cost-sensitive operations, back-office functions, satellite teams, and budget-constrained scale-ups still find Class B fit-for-purpose. The premium for Class A should always be evaluated against actual ROI, not brand.

Key facts

Frequently asked questions

How much cheaper is Class B than Class A in Tel Aviv?

Typically 30–60% on rent, with materially higher vacancy and weaker concessions. The gap has widened since 2020.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

• CBRE Marketview reports — CBRE
• JLL Office Insight — JLL
• Cushman & Wakefield Marketbeat — Cushman & Wakefield
• Savills World Research — Savills
• Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction

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