Herzliya Pituach Office Rents 2026: From NIS 130/sqm Peak to Under NIS 100, Fit-Out, Arnona & Management Fees

Office rents in Herzliya Pituach have fallen: from peaks of around NIS 130 per sqm per month in the leading buildings (a year or two ago) to an average of about NIS 97 per sqm per month for Class A offices in the first half of 2026, with many deals closing below NIS 100. At the same time, fit-out from shell-and-core has risen to about NIS 5,000 per sqm, and arnona (municipal property tax) and management fees come on top. This article sets out the numbers, comparison tables and a full worked example.

A note on the figures: a figure marked "(estimate)" is an Oren Real Estate market estimate, not a published statistic. A figure without that mark is based on a source listed at the end of the article. Before signing a lease, get an up-to-date quote from the building.

In brief: 4 numbers to remember

Rent: about NIS 97 per sqm per month on average for Class A (NIS 96.75 in H1 2026, per the Newmark Natam report). Previous peak: about NIS 130 in the leading buildings (estimate).

Fit-out from shell: about NIS 5,000 per sqm (estimate; depends on scope and specification).

Arnona: about NIS 28 to 32 per sqm per month (estimate; depends on classification and the municipality's decision).

Management fees: about NIS 18 to 25 per sqm per month (estimate; depends on the building).

Office rents in Herzliya Pituach: then and now

According to the same report, Class A occupancy in Herzliya fell from 94.4% to 90.6%, and Class B occupancy from 81.5% to 72.6%. More vacant space means tenants have more bargaining power.

Comparison with other areas (Class A, H1 2026)

Source: Newmark Natam office and logistics report, H1 2026, as published by Nadlan Center.

Why prices fell

High interest rates and less venture funding in hi-tech cut demand for large spaces.

Hybrid work: companies take smaller offices per employee.

Sublease space returned to the market from companies that downsized.

New supply of office towers in the area and the metropolitan region, and the light rail, which widened the alternatives.

What got more expensive: fit-out from shell

A shell-and-core office is cheaper to rent, but fitting it out (air conditioning, electrical, communications, flooring, partitions, fire protection and joinery) now costs about NIS 5,000 per sqm (estimate). In the past the usual figure was NIS 2,500 to 3,500 per sqm (estimate). The reasons: raw materials, construction wages and stricter standards.

It is worth asking the landlord for a fit-out contribution (Tenant Improvement allowance), a rent-free period during construction, or an office that is already finished.

Arnona and management fees

Arnona: in Herzliya Pituach about NIS 330 to 380 per sqm per year, or about NIS 28 to 32 per month (estimate; the binding rate is set in the Herzliya municipality's arnona order and by property classification).

Management fees: about NIS 18 to 25 per sqm per month in newer buildings (estimate). They cover common areas, security and maintenance, and sometimes central air conditioning.

Parking: about NIS 600 to 700 per space per month (estimate), usually 1 per 100 sqm.

VAT is added to rent and management fees.

Worked example: a 500 sqm office

Option A: finished office (plug and play)

Option B: shell-and-core with your own fit-out

Conclusion: on a 5-year lease, the finished office is about NIS 23,000 a month cheaper (about NIS 1.4 million over 5 years) than the shell-and-core option, before landlord incentives and before any residual value of the fit-out. Shell-and-core suits a company that needs a special specification or a lease longer than 7 years.

Negotiating tips in a tenant's market

Ask for a rent-free period (3 to 6 months) in return for a long lease.

Ask for a fit-out contribution or a freshly refurbished office.

Compare the total cost per sqm (rent, management, arnona, parking), not just the rent.

Check for an option to exit or reduce space after two to three years.

Compare with sublease space: it is sometimes finished and available immediately at a lower price.

Sources and clarifications

Newmark Natam, office and logistics report, H1 2026, as published by Nadlan Center (2 September 2026): rents and occupancy by area.

Oren Real Estate's deal experience in the area: previous peak prices, shell-and-core, sublease.

Items marked "(estimate)" are not official figures. This article is not legal or financial advice.

To check available offices in Herzliya Pituach and calculate the total cost for your needs: Hagai Oren, 054-445-2120.