Commercial real estate marketing follows a different logic from marketing an apartment. Someone who buys or leases an office, a store or a building is not looking for a home. They are looking for a property that will work for their business or their investment, so they measure every detail in numbers: rent per square meter, yield, total occupancy cost for the tenant, the remaining lease term and the tenant’s financial strength. An owner who markets an office the way one markets an apartment, with attractive photos and a price set by feel, often finds that the property stands empty for long months, or that a lease is signed that depresses the property’s value for years. In this guide we have gathered what you need to understand before going to market: how to price, who the audience is for each type of property, how to prepare the property and the documents, and which clauses in a commercial lease actually determine value. The figures are accurate as of October 2026, and every specific case should be reviewed by a lawyer and an accountant.
How commercial real estate marketing differs from marketing an apartment
In the residential market, emotion is a legitimate part of the decision. In the commercial market, the decision is usually made by several people: the CEO, the CFO, the company’s real estate consultant and sometimes an investment committee. Each of them checks something different, and each of them can stop the deal. In practical terms, the marketing has to answer everyone’s questions in advance.
- The unit of measurement is different. An apartment is sold at an overall price. A commercial property is priced by monthly rent per square meter, and a leased property is sold according to the yield it generates.
- The decision cycle is longer. A company relocating its offices plans the move months in advance, examines several alternatives in parallel and needs time for planning and fit out.
- The lease is part of the product. In a commercial property, the lease term, the options and the security affect value no less than location. A strong lease raises the value of the property, and a weak lease lowers it.
- Permitted use defines the audience. The use permitted under the zoning plan (taba) and the building permit, and the ability to obtain a business license, determine who can use the property at all.
- The law offers less protection. The amendment to the Rental and Borrowing Law, known as the Fair Rental Law, deals with residential leases and does not apply to an office or a store. In a commercial lease the parties set almost everything through negotiation, so the drafting carries particular weight.
Pricing in commercial real estate marketing: rent per square meter, yield and total cost
Correct pricing is the stage at which most of the value in commercial real estate marketing is determined. A price that is too high drives away serious companies at the first screening, and a price that is too low stays with you for the entire lease term, options included.
Rent per square meter
Pricing a lease starts with comparable transactions in the same area and in buildings of the same standard. According to a Newmark Natam survey for the first half of 2026, average rent in Grade A office towers in Tel Aviv stood at about ₪126 per square meter per month, and in Grade B buildings at about ₪86 per square meter. In Herzliya, the average in Grade A towers fell to about ₪97 per square meter. These are averages: the gap between one building and another, and even between one floor and another, can be large, so the basis for pricing is always transactions as close as possible to the property itself.
Total occupancy cost for the tenant
A tenant does not compare rent alone. They add up rent, service charges, municipal property tax (arnona), parking and the cost of fit out, and compare the total across the alternatives. A property with slightly higher rent but low service charges, well maintained systems and a suitable fit out period can be cheaper for the tenant in the overall calculation. Presenting this calculation transparently from the first stage saves both sides time.
Yield on an income producing property
A leased property is sold as an investment. The basic yield is annual rent divided by the price of the property. A professional investor will also check the net yield, after the costs that remain with the owner, and will price risk: how much time is left on the lease, how financially strong the tenant is, and how likely it is that the property will stand empty at the end of the term.
A worked example for illustration
The following example is for illustration only and does not reflect any specific property or transaction. A 250 square meter office in an office building in Ramat HaChayal is leased at ₪90 per square meter per month. Monthly rent is ₪22,500, and annual rent is ₪270,000. This is how the price an investor would be willing to pay changes according to the yield they require:
| Required yield | Annual rent | Property price |
|---|---|---|
| 5.5% | ₪270,000 | about ₪4,909,000 |
| 6% | ₪270,000 | ₪4,500,000 |
| 6.5% | ₪270,000 | about ₪4,154,000 |
The gap between 5.5% and 6.5% is about ₪755,000 on exactly the same property. What moves an investor between the two ends? Mainly the lease: a financially strong tenant with a long remaining term, linkage to the consumer price index and a bank guarantee bring the required yield toward the low end, which means toward the higher price. Concessions in the lease also change the picture: if the tenant in that same office was given four rent free months in a five year lease, the effective rent drops from ₪22,500 to ₪21,000 per month, a decrease of about 6.7%, and an investor will calculate according to the effective figure.
Sell or lease: how to make the decision
Owners of commercial property often find themselves weighing between realizing the value now and continuing to receive monthly income. There is no single right answer, but there are questions worth answering before marketing begins:
- What is the current yield relative to the price a sale could achieve? If the proceeds of a sale can earn more elsewhere, taking risk into account, that is a consideration in favor of selling.
- How much time is left on the existing lease, and what options does the tenant hold? A property with a long lease sells better to investors. A property that will soon be vacated is better suited to a buyer who will occupy it.
- What investments will be needed in the coming years? Air conditioning systems, elevators, accessibility and a lobby upgrade are large expenses, and a professional buyer will deduct them from the price.
- What is planned for the area? A light rail line, a new zoning plan or a large project nearby can change demand within a few years.
- What are the tax implications? Capital gains tax (mas shevach), VAT (maam) and the taxation of rental income differ from those of a residential apartment, and it is worth checking them in advance with an accountant.
Who the audience is for each type of commercial property
Success in commercial real estate marketing begins with a precise definition of the audience. Each type of property addresses a different audience, with different considerations.
Offices
The audience is companies, law and accounting firms, technology companies and startups. Demand shifts with the sectors: according to the same Newmark Natam survey, in the first half of 2026 cyber, defense technology and defense industry companies expanded their operations, mainly in Tel Aviv, while traditional high tech companies reduced their space. The occupancy rate in Grade A towers in Tel Aviv rose to 98.89%, and in Grade B buildings to 91.37%. In Herzliya Pituach, by contrast, occupancy in Grade A towers fell to 90.57% and in Grade B buildings to 72.58%. The difference between the areas shows that the office market is really several markets, and that proximity to heavy public transport, especially the Red Line of the light rail, has become a central factor in demand.
Stores and retail space
The audience is retail chains, independent businesses and restaurants. Here street frontage, foot traffic, visibility from the road and nearby parking determine value. A chain will check the property against the locations of its branches and against the audience in the area, and a food business will first check whether a business license can be obtained for the use it intends, including a chimney flue, a drainage system and operating hours.
Buildings, warehouses and light industry
The audience is logistics companies, importers and service companies. Ceiling height, truck access, a loading dock, floor load capacity and a sufficient electrical connection matter more here than design. A whole building also interests investors, and sometimes developers examining the potential of the building rights.
Income producing property for investors
A property with a tenant and a lease is sold according to its yield, and it interests private investors, families and investors from abroad. Here preparing the file is especially important: the lease, the payment history, the guarantees and the maintenance costs should be organized and ready for review.
Preparing the property and the documents before going to market
The most expensive mistake is going to market before the documents are ready. A serious tenant or investor will ask for them as early as the second meeting, and every delay slows the deal or opens the door to a demand for a discount.
- Legal status: a Land Registry extract (nesach tabu) or a confirmation of rights, and a check that there are no liens or notations that would interfere with the deal.
- Planning and permits: the building permit, the uses permitted under the zoning plan, and a check that the actual condition matches the permit. A deviation from the permit or an unapproved nonconforming use can prevent the tenant from obtaining a business license.
- Technical data: gross and net area, a floor plan, the condition of the air conditioning, elevators, accessibility, assigned parking and electrical capacity.
- Running costs: arnona according to the property’s classification, service charges and what they include.
- For a leased property: the lease, its appendices, the guarantees and material correspondence with the tenant.
Beyond the documents, it is worth examining how flexibly the space can be divided. An office that can be split into two units, or a store that can be combined with the one next door, appeals to a wider audience. Sometimes a small investment in cleaning, lighting and returning the space to a clean, open condition improves the impression more than any renovation.
Marketing materials and channels in commercial real estate marketing
The marketing materials for a commercial property must serve decision makers. A general description and photos are not enough. The property’s page or brochure should include:
- Professional photography of the space, the lobby, the facade and the view, and a clear floor plan.
- Technical specifications: areas, parking, systems, accessibility and permitted uses.
- A cost table: rent, service charges and arnona, so the tenant can see the total cost.
- Location and access: distance from train and light rail stations, main roads and parking garages.
- For an income producing property: a summary of the lease and the yield.
The channels vary by audience. Offices and buildings are marketed through direct outreach to companies and their real estate managers, through brokers who represent tenants, and through digital campaigns targeted by sector and role. Stores are also marketed to retail chains and operators. An income producing property is presented to investors in Israel and abroad. Screening matters no less than exposure: its purpose is to check early that the intended use suits the property, and that the business can provide the required security.
Negotiating a commercial lease: the clauses that determine value
In a commercial negotiation, price is only one of the variables. The following clauses determine actual income and the future value of the property:
| Clause | What to check | Why it matters to the owner |
|---|---|---|
| Term and options | The length of the initial term, the number and length of the options, and the rent increase on exercise | An option is a right of the tenant alone. An increase defined in advance for each exercise protects income |
| Indexation | Linkage to the consumer price index, the base index, and whether there is a floor | Without indexation, rent erodes over a long term |
| Fit out period | How many months without payment, and what the tenant commits to invest | Customary when the tenant invests in renovation, and weighed against the length of the lease |
| Service charges and costs | Who pays service charges, arnona, repairs and system maintenance | Every cost that remains with the owner lowers the net yield |
| Security | An autonomous bank guarantee, its amount and the extension mechanism | In the commercial market it is customary to require a bank guarantee equal to at least three months of rent |
| Use and licensing | The use permitted in the lease, and who is responsible for obtaining the business license | Prevents disputes if the license is delayed |
| Subletting and assignment | Whether the lease may be assigned or the space divided, and on what terms | Affects control of the property and the identity of the tenant |
| Return of the premises | The condition in which the tenant returns the property, and what happens to the improvements they made | Saves removal and renovation costs at the end of the term |
In a sale, the negotiation focuses on the price, the payment schedule and the delivery date, and for a leased property also on transferring the lease and the guarantees to the buyer. In both cases, once the commercial terms have been agreed, the lawyer manages the legal side and drafts the contract.
Taxation and legal aspects of a commercial property
The following aspects differ significantly from those of a residential apartment, and it is worth knowing them before you begin:
- Purchase tax (mas rechisha): on the purchase of a property that is not a residential apartment, such as an office, a store or a building, purchase tax is generally paid at 6% of the value, with no brackets. A buyer factors this into the price calculation.
- Capital gains tax: most of the exemptions from mas shevach apply to residential apartments. On the sale of a commercial property the tax is generally calculated on the real gain, at a rate of 25% for an individual on gain accrued from 2012. Our guide to capital gains tax explains the calculation.
- VAT: the VAT rate in 2026 is 18%. Leasing a commercial property is usually considered a transaction subject to VAT, and the owner must register as a VAT dealer (osek). In a sale, VAT liability and the reporting method depend on the status of the seller and the buyer and on the history of the property, so this is a check for the accountant before signing.
- Tax on rental income: the special tax tracks for rental income, such as the 10% track, are intended for residential leases. Income from a commercial lease is generally taxed at the ordinary rates, with the option to deduct expenses.
- Exclusivity and brokerage fees: the Real Estate Brokers Law requires a written order that sets out the brokerage fee. The statutory six month cap on exclusivity applies to a residential apartment, and for a commercial property the period is set by agreement. We covered the subject at length in our guide to brokerage fees and our guide to exclusive brokerage.
We do not provide legal or tax advice. Each of these subjects should be reviewed for the specific case with a lawyer and an accountant.
Frequently Asked Questions
What does commercial real estate marketing include?
Commercial real estate marketing includes pricing based on comparable transactions, rent per square meter and yield, preparing the documents and technical data, marketing materials for a business audience, exposure to companies, retail chains and investors, screening of tenants or buyers, and negotiating the terms until the deal moves to the lawyer.
How is the yield on a commercial property calculated?
The basic yield is annual rent divided by the price of the property. An office leased for ₪270,000 a year and sold for ₪4,500,000 generates a yield of 6%. Investors also check the net yield after costs, the remaining lease term and the tenant’s financial strength.
Does the Fair Rental Law apply to leasing an office or a store?
No. The amendment to the Rental and Borrowing Law deals with residential leases. In a commercial lease the parties set most of the terms through negotiation, including the term, options, indexation, fit out period and guarantees.
How much purchase tax is paid on a commercial property?
On a property that is not a residential apartment, purchase tax is generally paid at 6% of the value, with no brackets. It is worth checking with a lawyer or an accountant whether a relief or exemption applies in the specific case.
Which is better, leasing or selling a commercial property?
It depends on the current yield relative to the possible sale price, the remaining lease term, the investments the property will need, the plans for the area and the tax implications. A property with a long lease and a financially strong tenant usually sells better to investors.
How long does it take to lease an office?
There is no single answer. It depends on the location, the standard of the building, the size, the price and market conditions in the area. Companies plan an office move months in advance, so it is worth starting to market before the space is vacated and coming to market with correct pricing and documents ready.
Marketing a commercial property with RS Nadlan
RS Nadlan manages the marketing, sale and leasing of offices, stores, warehouses and income producing properties in Tel Aviv, Ramat HaSharon, Herzliya, Raanana and Kfar Saba, with a specialization in the neighborhoods of north Tel Aviv. We accompany property owners from pricing and document preparation, through exposure to the business audience and to investors, to finalizing the terms with the other side. More details are on our page for commercial real estate owners, and if you would like to start with a property valuation, we would be happy to help. To talk about your property, leave your details or call 077-500-4600 (from abroad, +972 77 500 4600). Meetings at our offices in Ramat Aviv Gimel are held by prior appointment.
