Major tech giants move in: ToHa 2 secures NIS 320M in new leases

Two significant lease agreements have been finalized at the ToHa 2 skyscraper in Tel Aviv, marking a major milestone for the high-rise project. The 78-story building, adjacent to the ToHa 1 tower, is set for completion by early 2028. Gav-Yam and Amot, the joint equal owners, announced the deals.

Firstly, WeWork has leased four floors, covering 10,000 square meters, through Ampa Real Estate. This agreement, valued at NIS 180 million over ten years, marks WeWork's presence in the ToHa 2 complex.

Secondly, American cloud services giant Salesforce has secured floors 24 through 46, totaling 15,300 square meters. Additionally, Salesforce holds an option to lease two more floors. The core-and-shell rent is estimated at NIS 150 per square meter, with annual rent set at NIS 27.5 million, making the total contract value NIS 140 million over five years. Salesforce plans to consolidate its Tel Aviv operations in this new location, following the completion of fit-out works in early 2028.

Despite expectations of a slowdown in the tech sector, driven by judicial reform, leasing agreements at ToHa 2 are proceeding smoothly. Google already occupies 60,000 square meters for ten years with an exit option after five years. Other industry players are in advanced negotiations for more lease deals.

The building's strategic location near the Hashalom railway station places it in a dense concentration of office towers, including Azrieli Center, Azrieli Sarona, Allon Towers, and Landmark Towers. These developments are primarily occupied by technology companies, alongside accounting firms, law offices, and investment funds. More than half of the tower's office space has already been committed under lease terms ranging from five to ten years.