What is the average Class A rent in Tel Aviv?

Around 220 ILS/sqft/yr ($59 USD) across the broader Class A index. Trophy submarkets like Sarona / Da Vinci command 20–40% above that.

How many months of rent-free are normal in Tel Aviv?

6 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Tel Aviv?

The Tel Aviv Class A market is currently softening. Vacancy is 12.4%, which sets the negotiating context.

Headline Class A rent in Tel Aviv is around 220 ILS/sqft/yr ($59 USD), with 6 months of typical rent-free on a 5-year term.

Headline Class A rent: 220 ILS/sqft/yr ($59 USD).
Trophy submarket rents (Sarona / Da Vinci) push to roughly ₪260/sqm/mo · ≈ $78.3 PSF/yr USD.
Typical concessions on a 5-year deal: 6 months free rent.
Vacancy stands at 12.4% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Tel Aviv Class A office rents and incentives

Headline Class A rent in Tel Aviv is around 220 ILS/sqft/yr ($59 USD), with 6 months of typical rent-free on a 5-year term.

TL;DR

Headline Class A rent: 220 ILS/sqft/yr ($59 USD).
Trophy submarket rents (Sarona / Da Vinci) push to roughly ₪260/sqm/mo · ≈ $78.3 PSF/yr USD.
Typical concessions on a 5-year deal: 6 months free rent.
Vacancy stands at 12.4% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Tel Aviv are quoted in ILS per sqft per year. Across the broad Class A index the figure is 220, but the trophy tier in Sarona / Da Vinci reaches roughly ₪260/sqm/mo · ≈ $78.3 PSF/yr USD. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Tel Aviv concessions on a 5-year Class A lease run to 6 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 23% Israeli corporate income tax. Approved Enterprise / Preferred Enterprise regimes provide reduced rates (7.5-16%) for qualifying R&D and high-tech activities.

Where rents land by submarket

Sarona / Da Vinci sits at the top end (~₪260/sqm/mo · ≈ $78.3 PSF/yr USD). Herzliya Pituach clears around ₪180/sqm/mo · ≈ $54.2 PSF/yr USD as the prime tier. The full submarket map is on the Tel Aviv city page.

Key facts

city	Tel Aviv
country	Israel
region	EMEA
classARentLocal	220 ILS/sqft/yr
classARentUsd	$59/sqft/yr
vacancy	12.4%
typicalLeaseYears	5
typicalRentFreeMonths	6
submarkets	5
primeYieldPct	5.4%
trophyRent	₪260/sqm/mo · ≈ $78.3 PSF/yr USD
primeRent	₪180/sqm/mo · ≈ $54.2 PSF/yr USD

Frequently asked questions

What is the average Class A rent in Tel Aviv?: Around 220 ILS/sqft/yr ($59 USD) across the broader Class A index. Trophy submarkets like Sarona / Da Vinci command 20–40% above that.
How many months of rent-free are normal in Tel Aviv?: 6 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Tel Aviv?: The Tel Aviv Class A market is currently softening. Vacancy is 12.4%, which sets the negotiating context.

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

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