WeWork, the company that builds and manages shared workspaces worldwide, is set to rent an additional 4 floors for 15 years in the ToHa office tower in central Tel Aviv with an option until the year-end to rent another four floors.
A memorandum of understanding for the 13,000 square meters of the, was recently signed between WeWork and real estate businesses Bayside Land Corp. and Amot Investments, associates in the ToHa workplace. The deal is said to amount to NIS300 million and if WeWork accepts the extension of the project, the identical stipulations will apply. If it does, half the building’s area available for will be occupied by WeWork offices. WeWork, which was founded by Israeli Adam Neumann and Miguel McKelvey in 2010, divides office space into rooms and rents them out per room, or even per table, for short periods of time.
Commenting on the deal, Bayside and Amot explained that wherever it goes, WeWork is recognized for introducing invention and a vigorous and up-to-date work atmosphere. Both corporations said they honored that WeWork had elected to situate their chief Israeli site in the ToHa project. They added that the move signifies a momentous breakthrough in transforming the whole expanse into Tel Aviv’s new high-tech epicenter.
Total rental space in the ToHa office tower, situated near Tel Aviv’s busy Hashalom Road and Yigal Alon Street junction, is 57,000 square meters, with 2,600-3,400 square meters on each floor. The building comprises 30 stories, space for 1,000 cars, a floor for trade, and features a park next to it. Outlay in the building amounted to NIS900 million.
During its financial report for the second quarter, Amot stated that marketing of the project had commenced as had talks with numerous global corporations comprising over half of the plan. The conglomerate has also forecasted that its main project, the building of the tower, will be accomplished by year-end 2018.
Amot (whose share price has moved up 35% as of the beginning of the year reflecting a 6.5 billion NIS market cap) and Bayside (whose share price climbed 25% to a market cap of 3.6 billion NIS) also have the rights to construct an additional adjacent tower comprising 70 stories on Yigal Alon. In recent months the companies reported that the strategy for building it is being endorsed in the commission for building and planning and they were moving to increase the building rights.