For institutional fund strategies, Sarona / Da Vinci carries the strongest investor flag in Tel Aviv, with prime yields around 5.4%.

  • Trophy submarket (Sarona / Da Vinci) carries the strongest investor flag.
  • Prime yield: 5.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Tel Aviv office fund strategy and flag

For institutional fund strategies, Sarona / Da Vinci carries the strongest investor flag in Tel Aviv, with prime yields around 5.4%.

TL;DR

  • Trophy submarket (Sarona / Da Vinci) carries the strongest investor flag.
  • Prime yield: 5.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Tel Aviv, that's Sarona / Da Vinci and assets like Azrieli Sarona, Azrieli Center.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityTel Aviv
countryIsrael
regionEMEA
classARentLocal220 ILS/sqft/yr
classARentUsd$59/sqft/yr
vacancy12.4%
typicalLeaseYears5
typicalRentFreeMonths6
submarkets5
primeYieldPct5.4%
primeYield5.4%
trophyAnchorSarona / Da Vinci

Frequently asked questions

Where do core funds buy in Tel Aviv?
Trophy submarket — Sarona / Da Vinci — and the most defensible long-WAULT assets within it.

Editorial provenance

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

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