The Israeli commercial real estate market continues to demonstrate remarkable resilience and adaptability, particularly in the beating heart of the Gush Dan metropolis. In a significant move that underscores the strength of the Bnei Brak Business Center (BBC), real estate firm Mishorim has finalized a decade-long lease agreement that does more than just fill office space—it cements a partnership focused on social responsibility and long-term economic stability.
Strategic Moves in the Gush Dan Hub
- The Agreement: A locked-in, 10-year lease for approximately 2,000 square meters.
- The Valuation: The deal is estimated at a total of 18 million NIS.
- The Tenant: “Alei Siach,” a prominent non-profit organization serving the Haredi community.
- The Asset: The Vita Building, a prime commercial property on the Bnei Brak-Ramat Gan border.
A Decade of Stability: Examining the 18 Million NIS Contract
The deal, signed just last week, represents a major win for Mishorim, a yield-bearing real estate company controlled by Alex Shnaider. The agreement leases out 2,000 square meters on the second floor of the Vita Building to Alei Siach. Notable for its rigidity, the contract spans ten years without an exit point, securing a steady cash flow estimated at 18 million NIS over the term.
This transaction signals confidence in the local market. While some global office sectors struggle with vacancy, this agreement highlights the demand for well-located, accessible properties in Israel. Mishorim, which purchased 11,200 square meters in the building from Ashtrom four years ago for 104 million NIS, continues to optimize its asset, which currently boasts a 70% occupancy rate.
Who Is the New Anchor Tenant?
Why is a non-profit moving into a business complex?
Alei Siach is not a standard corporate tenant. Established in 1990, it is a non-profit organization dedicated to providing comprehensive solutions for individuals with disabilities within the religious and Haredi sectors. As of 2026, the organization offers housing, employment, and personal guidance.
The newly leased space is slated to become an employment center for adults with special needs. The facility will feature a designated internal patio and a garden, tailored to the well-being of its users. Mishorim has indicated that the tenant is already considering expanding its footprint in the building, suggesting this 2,000-meter deal may just be the beginning of a larger hub for social services within the business district.
The Location: Vita Building’s Strategic Advantage
The Vita Building is situated in the high-demand “BBC” compound on Ben Gurion Street, straddling the seam between Bnei Brak and Ramat Gan. It is a six-story structure comprising roughly 18,500 square meters of space, supported by a commercial ground floor and a massive underground parking facility with 480 spots.
Its allure lies in connectivity. The building is adjacent to major traffic arteries and the Light Rail, making it highly accessible for employees and visitors coming from across the metro area. The surrounding pedestrian mall, populated with restaurants and shops, adds to the vibrancy of the location, transforming it from a mere office block into a lively urban environment.
Shifting Trends: Education Meets Commerce
Is the office market transforming?
According to Alon Vaksman, CEO of Mishorim, the market is waking up, but the tenant profile is evolving. There is a discernible trend of educational and training institutions moving into urban office towers. The Vita Building already hosts Mivchar College and other academic bodies, alongside corporate tenants like the urban renewal firm 4IG and Israel Post.
“We are seeing increased entry of educational and training institutions into office buildings in employment-based urban areas with transport accessibility,” Vaksman noted. These tenants require large floor plates and long-term stability, making them ideal partners for landlords seeking to diversify their portfolio beyond traditional tech or service firms.
| Metric | Details |
|---|---|
| Transaction Value | ~18 Million NIS total |
| Lease Term | 10 Years (No exit point) |
| Leased Area | ~2,000 Sqm |
| Building Ownership | Mishorim owns ~11,200 Sqm (purchased for 104M NIS in 2022) |
| Current Occupancy | ~70% |
| Tenant Sector | Social Welfare / Non-Profit (Haredi Sector) |
Investor Checklist: Reading the Market
- Monitor Tenant Diversification: Look for buildings that mix traditional business tenants with “sticky” institutional tenants like colleges and NGOs.
- Value Accessibility: Properties near the Light Rail and major arteries in Bnei Brak/Ramat Gan retain value better than isolated assets.
- Watch the “BBC” Zone: The Bnei Brak Business Center is maturing into a prime alternative to Tel Aviv, offering competitive rates with high-end infrastructure.
Glossary
- Mishorim: A public Israeli real estate company specializing in yield-bearing assets, controlled by Alex Shnaider.
- Alei Siach: A veteran Israeli non-profit organization providing housing, employment, and support for people with disabilities in the religious/Haredi community.
- BBC (Bnei Brak Business Center): A developing business district located at the northern end of Bnei Brak, bordering Ramat Gan, known for modern office towers.
- NIS: New Israeli Shekel, the currency of Israel.
- Tab’a: An acronym for “Tochnit Binyan Ir” (City Building Plan), referring to urban zoning regulations that dictate permitted land uses (e.g., allowing education in office zones).
Methodology
This article is based on an exclusive report by Dror Nir Castel dated January 18, 2026. Data regarding lease terms, square footage, financial valuations, and building specifications were derived directly from the text describing the agreement between Mishorim and Alei Siach. Historical purchase data relies on the stated 2022 transaction details between Mishorim and Ashtrom.
Frequently Asked Questions
Q: Why is this deal considered significant for Bnei Brak?
A: It highlights the BBC complex’s ability to attract diverse tenants. By securing a 10-year lease with a stable non-profit, the deal demonstrates that Bnei Brak’s commercial district is a viable, long-term destination for organizations beyond standard corporate offices.
Q: Does Mishorim own the entire Vita Building?
A: No. Mishorim owns approximately 11,200 square meters (about 60% of the total 18,500 sqm). Other owners include the retail chain Tamnoon, the Freemasons, and various small business owners.
Q: What makes the Vita Building attractive to a special needs organization?
A: The building offers high accessibility due to its proximity to the Light Rail and major roads. Furthermore, the space allows for specific modifications, such as the creation of an internal patio and garden, which are essential for the well-being of the individuals Alei Siach serves.
Q: How does this fit into broader Israeli real estate trends?
A: It reflects a shift where office owners are diversifying tenants to include “recession-proof” sectors like education and welfare. As the CEO noted, institutions looking for large spaces and long contracts are becoming a natural part of the office tenant mix.
Strategic Outlook
The Mishorim-Alei Siach deal is a testament to the robust nature of the Israeli internal market. It showcases a synergy between capital investment and social welfare, proving that commercial real estate in Israel can serve community needs while delivering solid returns. As the BBC complex continues to develop, expect to see more hybrid tenancy models that blend commerce, education, and social services.
Key Takeaways
- Long-Term Security: A 10-year lease without exit points provides exceptional stability for the landlord.
- Inclusive Growth: High-end office spaces are increasingly serving social and educational purposes.
- Prime Location: Proximity to mass transit remains the ultimate driver for occupancy in Gush Dan.
- Market Recovery: The deal signals a “waking” office market, supported by diverse tenant types.
Why We Care:
This story matters because it illustrates the unique strength of Israel’s economy: the ability to integrate advanced commercial infrastructure with deep social responsibility. It shows that even in a fluctuating global real estate market, Israeli businesses find creative, stable ways to grow while supporting the most vulnerable sectors of society. This is a story of economic health and moral clarity co-existing in the center of the country.
