Financial reports recently released by real estate company Gav-Yam reveal the completion of the two lease transactions in ToHa 2, located at the intersection of Hashalom, Yigal Allon, and Totseret Ha'arets streets in Tel Aviv. The project, a massive 78-story skyscraper situated adjacent to the ToHa 1 tower, is currently in advanced stages of construction, with final completion expected by early 2028. The tower will offer approximately 160,000 square meters of total office space.
According to the announcement by joint equal owners Gav-Yam and Amot, the first transaction involves flexible workspace provider WeWork, which is leasing four floors covering 10,000 square meters through Ampa Real Estate. The deal is valued at NIS 180 million over a 10-year period.
The second transaction was finalized with American cloud services giant Salesforce. The company will lease floors 24 through 46, totaling 15.3 thousand square meters, alongside an option to lease two additional floors. Core-and-shell rent is estimated at NIS 150 per square meter.
Under the terms of the agreement, annual rent will stand at NIS 27.5 million, bringing the total value to NIS 140 million over the five-year contract term. Salesforce plans to consolidate its Tel Aviv operations - currently spread across several towers - at the new location, with the move scheduled for early 2028 following the completion of fit-out works.
Leasing agreements in the building are progressing steadily despite earlier expectations of a slowdown in the tech sector, which had been primarily driven by the judicial reform. Google had previously leased 60,000 square meters for ten years, with an exit option after five years.
Additional industry players are currently in advanced negotiations for further lease deals as structural completion of the building approaches by the end of this year. Estimates suggest that more than half of the tower’s office space has already been committed under terms ranging from five to ten years.
The ToHa project is situated near the Hashalom railway station in Tel Aviv, a hub with a dense concentration of office towers including the Azrieli Center, Azrieli Sarona, Allon Towers, and Landmark Towers. These developments are predominantly occupied by technology companies, alongside accounting firms, law offices, and investment funds.