---
title: "Tel Aviv Class A office rents and incentives"
description: "Class A asking rents, concessions, free rent, and tenant improvement allowances in Tel Aviv."
canonical: https://classa.info/cities/tel-aviv/rents-and-incentives
pageType: city-topic
lastUpdated: 2026-04-15T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Headline Class A rent in Tel Aviv is around ₪220/sqm/mo · ≈ $66.2 PSF/yr USD, with 6 months of typical rent-free on a 5-year term.

## TL;DR

- Headline Class A rent: ₪220/sqm/mo · ≈ $66.2 PSF/yr USD.
- Trophy submarket rents (Sarona / Da Vinci) push to roughly ₪260/sqm/mo · ≈ $78.3 PSF/yr USD.
- Typical concessions on a 5-year deal: 6 months free rent.
- Vacancy stands at 12.4% — market trend is softening.
- Use effective rent (face minus PV of concessions), not headline, to compare deals.

# Tel Aviv Class A office rents and incentives

**Headline [Class A](/glossary/class-a) rent in Tel Aviv is around ₪220/sqm/mo · ≈ $66.2 PSF/yr USD, with 6 months of typical rent-free on a 5-year term.**

## TL;DR

- Headline Class A rent: ₪220/sqm/mo · ≈ $66.2 PSF/yr USD.
- Trophy submarket rents (Sarona / Da Vinci) push to roughly ₪260/sqm/mo · ≈ $78.3 PSF/yr USD.
- Typical concessions on a 5-year deal: 6 months free rent.
- Vacancy stands at 12.4% — market trend is softening.
- Use [effective rent](/glossary/effective-rent) (face minus PV of concessions), not headline, to compare deals.

## Headline rent vs. effective rent

Asking rents in Tel Aviv are quoted in ILS per sqft per year. Across the broad Class A index the figure is 220, but the [trophy tier](/topics/trophy-asset-selection) in Sarona / Da Vinci reaches roughly ₪260/sqm/mo · ≈ $78.3 PSF/yr USD. Always discount [headline rent](/glossary/headline-rent) by the present value of free rent and [fit-out](/topics/us-tia-strategy)-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

## Rent-free and TI

Standard Tel Aviv concessions on a 5-year Class A lease run to 6 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 23% Israeli corporate income tax. Approved Enterprise / Preferred Enterprise regimes provide reduced rates (7.5-16%) for qualifying R&D and high-tech activities.

## Where rents land by submarket

Sarona / Da Vinci sits at the top end (~₪260/sqm/mo · ≈ $78.3 PSF/yr USD). Herzliya Pituach clears around ₪180/sqm/mo · ≈ $54.2 PSF/yr USD as the prime tier.  The full submarket map is on the Tel Aviv city page.

## Key facts

| city | Tel Aviv|
| country | Israel|
| region | EMEA|
| classARentLocal | ₪220/sqm/mo · ≈ $66.2 PSF/yr USD|
| classARentUsd | $66/sqft/yr|
| vacancy | 12.4%|
| typicalLeaseYears | 5|
| typicalRentFreeMonths | 6|
| submarkets | 5|
| primeYieldPct | 5.4%|
| trophyRent | ₪260/sqm/mo · ≈ $78.3 PSF/yr USD|
| primeRent | ₪180/sqm/mo · ≈ $54.2 PSF/yr USD|

## Frequently asked questions

****What is the average Class A rent in Tel Aviv?****
: Around ₪220/sqm/mo · ≈ $66.2 PSF/yr USD across the broader Class A index. Trophy submarkets like Sarona / Da Vinci command 20–40% above that.

****How many months of rent-free are normal in Tel Aviv?****
: 6 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

****Are rents rising or falling in Tel Aviv?****
: The Tel Aviv Class A market is currently softening. Vacancy is 12.4%, which sets the negotiating context.

## Editorial provenance

Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards).

### Primary sources for this page

- [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE
- [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL
- [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield
- [Savills World Research](https://www.savills.com/research_articles/) — Savills
- [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers

[Full sources index](/about/sources) · [Submit a correction](/about/corrections)

## Related topics

- [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal.
- [**US TIA Strategy**](/topics/us-tia-strategy) — How to negotiate, draw down, and account for US tenant improvement allowances (TIA).

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Citation: Source: Class A Atlas (https://classa.info/cities/tel-aviv/rents-and-incentives), updated 2026-04-15T00:00:00.000Z.