Introduction
The Israeli office market increasingly features hybrid spaces that combine work areas with on-site storage. These properties are particularly attractive to small businesses, logistics operators, and service providers who require both administrative and operational functions in one location. This guide explores the market for offices with storage for rent, its costs, demand patterns, and practical considerations for decision-making.
Current Market Landscape
The supply of offices with storage is concentrated in mixed-use zones and light industrial areas rather than central CBD towers. Demand has grown as e-commerce and distribution businesses seek flexible setups that reduce reliance on external warehouses. The market is fragmented, with large modern complexes as well as older buildings offering practical but less polished solutions.
Price Analysis
Rental prices for offices with storage typically fall in the mid-range between standard offices and full logistics warehouses. In many cities, the average cost can be directionally estimated at ₪60–₪90 per m² for office portions, while storage areas often price lower, in the ₪35–₪55 per m² range. Market pressures such as rising construction costs and limited land availability have kept an upward trend, particularly in high-demand regions near Tel Aviv and central arteries.
Inventory and Demand
These units are not as plentiful as conventional offices, making them moderately scarce. Competition comes from SMEs in e-commerce, import/export firms, and service providers needing inventory space. Demand tends to rise before peak retail seasons, while professional offices without storage see steadier year-round interest.
Key Neighborhoods
- Petah Tikva – Business parks with integrated office and warehouse layouts.
- Holon – Light industrial zones close to central Tel Aviv.
- Herzliya Pituach – Suitable for companies balancing prestige with operational needs.
- Bnei Brak – Compact spaces serving wholesale and distribution businesses.
- Haifa Bay Area – Regional hub for companies serving the north.
Ideal Buyer/Renter Profile
The typical renter is a company balancing office staff functions with physical inventory management. They prioritize efficiency and cost savings from reduced logistics overhead, rather than seeking high-end corporate branding. This includes online retailers, importers, and field service providers who move goods daily.
Advantages of Offices With Storage For Rent
- Operational efficiency by combining administration and inventory under one roof.
- Cost savings compared with renting separate office and warehouse spaces.
- Flexibility for businesses scaling up logistics without committing to large industrial leases.
Disadvantages and Challenges
- Often located outside premium office districts, reducing prestige for client-facing operations.
- Storage areas may lack climate control, limiting sensitive goods handling.
- Building regulations and zoning may restrict usage or expansion options.
Practical Considerations
- Monthly costs include rent, Arnona (municipal tax), and in some buildings Va’ad Bayit for shared services.
- From an investment perspective, yields (תשואה) tend to be slightly higher than pure office space but lower than logistics-only assets.
- Permits for mixed-use operations should be verified, especially in older properties.
- Parking capacity and loading bay access are critical for logistics-heavy tenants.
- Renovation costs may arise if older warehouses are adapted for modern office standards.
Market Comparisons
Compared with pure offices, these hybrid spaces trade centrality and prestige for functionality and cost efficiency. Relative to full warehouses, they offer better working conditions for administrative staff and improved accessibility for clients. The choice depends on whether a business needs a customer-facing office, logistical capacity, or both in one location.
Frequently Asked Questions (FAQ)
Question: Are offices with storage available in central Tel Aviv?
Answer: They are rare in the core business district; most inventory is in peripheral zones such as Holon or Petah Tikva.
Question: How do Arnona rates compare to standard offices?
Answer: Rates are usually higher than residential but vary by municipality; storage areas may be taxed differently from office space.
Question: Is it possible to convert part of the storage into extra office space?
Answer: This may be feasible but requires municipal approval and compliance with building codes.
The Expert Take
Offices with storage for rent represent a growing niche for businesses seeking efficiency in both administration and operations. Their value lies in reducing logistical complexity, even if they sacrifice prestige compared with central office towers. For companies balancing physical goods with office staff, they offer a practical middle ground. Contact our real estate specialists for a personalized consultation.
