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Logistics & Warehousing

Israel's fastest-growing commercial real estate asset class. Demand is outpacing new supply at a historic rate.

2.3% Vacancy Rate
18% E-commerce Growth
5.5–7% Cap Rate Range
+12% Rent Growth 2025

Israel's Logistics Boom

Israeli e-commerce has grown at 18% annually since 2020, driven by Amazon's entry into the Israeli market, Temu's rapid expansion, and Israeli retailers building in-house fulfillment infrastructure. The result: logistics space vacancy has fallen to 2.3%, the lowest level on record.

The structural drivers are powerful and durable. Distribution centers near Ashdod Port (Israel's largest cargo port) and Haifa Port are particularly sought after. The "last-mile" logistics corridor linking the Dan metropolitan region — Israel's economic core — is seeing the most intense demand and rent growth.

Port Proximity and Infrastructure

Properties within 20km of Ashdod Port command a significant premium and consistently achieve the highest occupancy rates. The Ashdod-Yavne logistics corridor has emerged as Israel's premier distribution zone, with major retailers, 3PLs, and manufacturers competing for limited Grade-A space.

Haifa Port services northern Israel and benefits from direct rail connectivity to the Haifa Bay industrial zone and the Galil logistics hub.

What We Offer

  • Full logistics warehouse search across Israel — Grade A, B, and C properties
  • AI-scored listings updated daily from 8 data sources, including off-market opportunities
  • Technical due diligence: clear height, dock configurations, power supply, fire suppression systems
  • Market-rate analysis and lease negotiation
  • Investment analysis: NOI calculations, cap rate benchmarking, hold-period modeling
  • Tenant introduction for investment properties seeking anchor occupants
  • Sale-leaseback advisory for operators seeking to unlock capital

Israel's Manufacturing Revival

A global trend toward supply chain resilience has accelerated Israel's domestic manufacturing sector. Semiconductor fabrication, defense electronics, medical devices, and agri-tech are driving unprecedented demand for quality industrial facilities, particularly in Israel's established science park zones.

The tech-industrial hybrid property — combining clean production space, R&D laboratories, and office components — has emerged as a distinct asset class in Israeli industrial parks. These properties command premium rents and attract high-quality, long-term tenants.

Key Industrial Zones

Israel's industrial real estate is concentrated in designated zones managed under Israeli law (Taba industrial classification). Key zones include: Petah Tikva Industrial Areas (proximity to Tel Aviv, broad zoning flexibility), Nes Ziona and Rehovot Science Park (life sciences and pharma), Beer Sheva Ramat Hovav (chemical and heavy industrial), and northern corridor zones in Haifa Bay (petrochemical, port-related manufacturing).

What We Offer

  • Industrial property search across all major Israeli industrial zones
  • Zoning verification and permitted use analysis (critical in Israeli industrial law)
  • Power infrastructure assessment — three-phase power, transformer capacity
  • Environmental compliance review coordination
  • Industrial lease negotiation: rent-free periods, capex contributions, break clauses
  • Build-to-suit advisory for occupiers with specific requirements
  • Investment acquisition for income-producing industrial assets
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Industrial Real Estate

Manufacturing, R&D, tech-industrial hybrids, and heavy industrial — across Israel's established industrial parks and science zones.

6–8% Avg Cap Rate
15+ Active Zones
10yr Avg Lease Term
NNN Typical Structure
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Retail & Commercial

Israeli retail real estate — from urban street-level commercial to anchored shopping centers and mixed-use developments.

89% Occupancy (Prime)
+6% Rent Growth 2025
7–9% Cap Rate Range
5yr Standard Lease

Israeli Retail Recovery and Growth

Israeli retail has demonstrated remarkable resilience. Prime street-level commercial spaces in Tel Aviv, Jerusalem, and Haifa maintain occupancy above 90% with consistent rent growth. The post-pandemic shift toward experiential retail and food & beverage anchored centers has strengthened demand for well-located retail assets.

Mixed-use developments — combining retail, hospitality, and residential components — represent the most dynamic segment of Israeli retail real estate. Major urban regeneration projects in Tel Aviv's southern neighborhoods and Jerusalem's urban fringe are creating new retail investment opportunities.

Anchor Tenant Dynamics

Israeli retail centers are heavily influenced by anchor tenant strategy. Supermarket chains (Shufersal, Rami Levy, Victory), electronics retailers (KSP, iDigital), and home improvement stores (ACE, Kfar Hashanak) drive foot traffic that supports surrounding commercial tenants. Understanding anchor dynamics is critical for retail investment analysis.

What We Offer

  • Retail and commercial space search — ground floor, shopping centers, mixed-use
  • Footfall analysis and catchment area assessment
  • Anchor tenant strategy and co-tenancy analysis
  • Commercial lease negotiation — rent, turnover clauses, fit-out contributions
  • Retail investment acquisition — income-producing assets and repositioning plays
  • Mixed-use development opportunity identification

Advisory Built for International Investors

International investors face a distinct set of challenges in the Israeli commercial real estate market: unfamiliar legal structures, Hebrew-language documentation, a relationship-driven broker culture, and limited access to transparent data. Agada's advisory service was designed specifically to address these barriers.

Cap Rate Analysis & Yield Comparison

Israeli commercial real estate offers attractive yield spreads relative to comparable European markets. Prime logistics assets: 5.5–7% cap rates vs. Germany (3.5–4.5%) and the UK (4–5%). Industrial assets: 6–8% vs. European equivalents at 4–5.5%. We provide institutional-quality cap rate analysis with NOI verification, benchmarked against comparable transactions.

Israeli Legal Framework for Foreign Buyers

Purchase Tax 8% for foreign buyers on all commercial property. Must be budgeted in acquisition cost.
Arnona Municipal property tax — in Israel, typically paid by the tenant under NNN leases, but verify per-asset.
VAT 17% VAT applies to commercial property transactions (recoverable for VAT-registered businesses).
Land Registration Israel Land Authority (Minhal) leasehold structures are common. Full freehold (tabu) is available and preferred.
Lawyer Requirement Israeli property lawyer mandatory. Fees typically 1–1.5% of transaction value.
Building Permits Verification of occupancy permits (teudat gmar) and use permits is essential — a significant source of risk in Israeli CRE.

Financing Options

Israeli banks (Bank Hapoalim, Bank Leumi, Mizrahi Tefahot) provide commercial mortgages to foreign purchasers at up to 50% LTV on commercial assets. Interest rates are NIS-denominated (currently 5.5–7.5% depending on structure and borrower profile). We coordinate with partner mortgage brokers to secure optimal financing.

For investors preferring to avoid currency exposure, USD- and EUR-denominated financing can be structured through international lenders with Israeli portfolios. We have relationships with lenders familiar with Israeli CRE security structures.

Currency Considerations

The Israeli New Shekel (NIS) has appreciated significantly against major currencies over the past decade. Rental income and property values are NIS-denominated. Forward contracts and options are available for investors seeking to hedge currency exposure. We provide NIS/USD and NIS/EUR dynamic analysis as part of our investment reporting.

Transaction Timeline in Israel

Commercial purchase: 2–4 months from signed letter of intent to closing. Key milestones: (1) LOI / Heads of Terms — 1–2 weeks, (2) Due Diligence — 4–6 weeks, (3) Purchase Contract Signing — 1–2 weeks, (4) Mortgage Approval (if financed) — 4–6 weeks, (5) Land Registry Transfer — 2–4 weeks.

Leases move faster: 2–6 weeks from introduction to signed lease, depending on tenant requirements and landlord responsiveness.

What We Offer

  • Full English support throughout — no language barrier
  • Investment thesis development and asset sourcing
  • Cap rate analysis and yield benchmarking vs. European markets
  • NOI verification and lease-by-lease financial analysis
  • Israeli legal and tax framework orientation
  • Lawyer and CPA referrals from our verified professional network
  • Financing coordination with Israeli and international lenders
  • Currency risk analysis and hedging option guidance
  • Post-closing: property management referrals, tenant management support
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Advisory & Investment

Israel-to-world investment bridge — full English support, legal framework guidance, cap rate analysis, and transaction management.

2–4mo Purchase Timeline
50% Max LTV (Foreigners)
8% Purchase Tax
15 AI Score Params

How We Work

01

Discovery Call

A free 15-minute call with Idan to understand your investment criteria, target asset class, budget, and timeline. We define the brief together — no assumptions, no wasted time.

02

AI-Powered Search

Our system scans 8 data sources daily and scores relevant properties across your criteria. You receive a curated shortlist with full AI scoring rationale — in English — within 48 hours.

03

Site Visits & Due Diligence

Idan personally accompanies you (or represents you remotely with full documentation and video walkthroughs) on property visits. We manage the due diligence process, coordinating lawyers, engineers, and tax advisors.

04

Negotiation & Close

We negotiate on your behalf with full market intelligence — recent comparables, landlord motivation analysis, and deal structure expertise. We manage the transaction to closing and remain available post-close.

Schedule a Free Consultation

15 minutes with Idan will clarify whether Israeli commercial real estate fits your investment strategy. No obligation, no pressure.

Schedule a Consultation →