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Finding Office Space in Jerusalem- Key Considerations
When a company begins the process of searching for office space in Jerusalem, it is essential to consider multiple factors to ensure the location meets business needs, aligns with average rental prices in the area, and provides a comfortable working environment.
At times, it may seem that the primary challenge is simply finding the right property or chasing the best commercial deal. However, experience shows that even after identifying suitable office space for potential tenants, a number of factors still need to be taken into consideration.
We have compiled a list of crucial parameters and mandatory checkpoints to review before signing a lease agreement or purchasing an office in Jerusalem.
Accessibility for current employees and attractiveness for recruitment. For example, the developing entrance area of Jerusalem is well-connected to the central train station, allowing for employee recruitment from the Tel Aviv area (a train from Tel Aviv to Navon Station in Jerusalem takes 27 minutes).
Future railway plans under construction (which may cause disruptions until completion).
Availability of supporting businesses nearby, such as cafés, restaurants, banks, government offices, post offices, courts, high-tech hubs, and quiet or scenic surroundings—each company has its own needs.
Who is the developer or property owner?
Is the building owned by a single entity or multiple owners?
Is the building in a good state of repair?
Building Age & structure specifications.
Generator availability and backup capabilities (chillers, fire detection systems, 24/7 operation).
Building and chiller operating hours (especially relevant for companies working with international clients, as air conditioning may require additional costs outside standard hours).
Gross-to-net ratio of the building and ability to subdivide floors to meet tenants fitout & growth requirements.
Shower/Wet rooms for employees.
Parking spaces for cars/bicycles and scooters.
Power supply and its availability level.
Gym facilities: Is access included in the management fees or at an additional cost?
Synagogue availability.
Disabled compliant facilities.
Communal Breakout/meeting room & conference facilities.
Which floor the office is located on.
The office’s orientation (critical for sun exposure throughout the day).
Floor entry doors.
Floor finishing level.
Floor height (ideal height: 3.20m from concrete to concrete).
Dead space on the floor—resulting from inefficient floor planning.
Gross-to-net ratio within the leased space (an equally important factor alongside the price per square meter).
Number and location of allocated parking spots (typically, in Jerusalem, the standard parking allocation is 1 space per 50m². In the entrance area of the city, the situation is different due to a lack of parking, often limiting buyers/tenants to only four parking spaces per floor).
Number and condition of restroom facilities—are they inside the office space or in shared lobbies?
Landlord’s approval for tenant modifications.
Expected timeline for fit-out work (who bears the cost, and what financial model applies? Previously, an additional rent of 10 NIS per square metre was standard for every 1,000 NIS invested in fit-outs. Due to rising interest rates, the current standard has increased to 12 NIS per square meter per 1,000 NIS invested).
If the office is secondhand, who is responsible for repairing defects—the landlord or tenant? Will a schedule of condition be attached to the lease agreement?
General project timeline.
Start date for office fit-out work.
Duration of fit-out work (some buildings restrict construction to specific hours).
Methods for transporting equipment and materials during the fit-out phase.
Lease & rent commencement date.
If in a newly constructed development, the expected date for receiving the building’s Form 4 (occupancy permit).
Grace period (rent-free months or landlords capital contribution for construction purposes).
Rent/Council Tax & Service charge/Management cost per square meter.
Total duration of lease term.
Exit/Break clause options during the lease term.
Notice period required for vacating.
Assignment/sub-letting provisions during the length of the lease term.
Rent Review mechanism.
Storage unit rental fees.
Does the management company allocate funds to an investment reserve?
Rental Payment options (Quarterly/monthly advance payments).
Rent Review Mechanism: Which index is used for rent adjustments?
Additional Parking costs.
Temporary/Visitor parking availability.
Rental prices in Jerusalem remain constant between areas such as Har Hotzvim, Givat Shaul, the city center, and Talpiot.
Typical example of monthly average prices are as follows:
Class A New Building in Shell Condition: 80-90 Shekel per metre
Class A New Building with Landlords Fit out in place: 90- 120 Shekel per metre
Class B Building in Shell Condition: 60-75 Shekel per metre
Class B Building with Landlords Fit out in place: 75- 90 Shekel per metre
Service Charge/Management Fee: Average price is 15-20 Shekel per metre
Additional Utilities: Typically 3 shekel per metre for air-conditioning.
Parking: Average price is between 500-800 shekel per month.
Council Tax: 2025 rate is 33 shekel per metre.
Finding the right office space for your business requires a thorough review of all aspects relating to the property, lease conditions, location and building infrastructure. Proper planning and attention to key factors will help ensure an optimal office selection for your business.
It is recommended to consult professional advisors to ensure that lease agreements serve your business requirements. Your Space will hold your hand throughout the whole acquisition process and would be happy to introduce you to any professional consultants if required. Our mission is to get you the most commercially attractive terms and meet whatever timelines your business requires.
Call us 054-742-2255 / 054-766-2727
