The Real Estate Gold Rush isn't in Offices Anymore - It's in Data Centers

A Tale of Two Markets: Here's a number that caught my eye: 207%. That's how much investment in data centers has exploded since May 2019. Meanwhile, office building investments have quietly slipped by 19%. (Thanks, Sage Economics, for this eye-opening data.)

Why This Matters: Think of it as the commercial real estate equivalent of the shift from brick-and-mortar stores to e-commerce. Just as online shopping has changed retail forever, cloud computing and AI are transforming where businesses put their money. The physical office might be getting less attention, but the digital "office" - the data center - is booming.

What We're Seeing on the Ground: Our global clients aren't just looking for office space anymore - they're hunting for massive plots of land to build data centers. We're talking dozens of acres. And Israel? We're catching the waves too.

The Time = Money Equation: I was at the Israeli Data Centers Association – I.D.C.A conference two weeks ago, and here's what struck me: every single day of delay in delivering a data center, costs millions. Thats why companies are turning to AI-powered planning systems (like Foresight AI) to spot problems before they happen. In a country known for its bureaucratic hurdles, this kind of foresight is gold.

The Bottom Line: This isn't just a trend - it's a fundamental shift in how we think about commercial real estate. The future isn't just about where people work; it's about where data lives.

Want to Know More? We could talk for hours about 'white floors,' 'Megawatts,' and the nitty-gritty of data center development. In fact, we work closely with 11 Stream, Israel's leading data center consultancy, and we're seeing this transformation firsthand.

Commercial real estate in Israel

Menibim The New Heritage Fund Ltd. purchased a logistics property with an area of approximately 3,400 square meters in Aza'at Hebol Modi'in for 50 million NIS.

A subsidiary of Azorim Investments Company in Patuh and Building Ltd. entered into sales agreements for the sale of three profitable properties: the "Hablok" complex in Be'er Sheva, the "Hakochav" complex in Galilee Yam, the "Hnarkis" complex in Rishon Lezion in exchange for 203.5

Commercial real estate overseas

A subsidiary of G City Ltd entered into an agreement for the sale of Shopping Center Flora in Prague, Czech Republic in exchange for approximately NIS 884 million.

A subsidiary of Lahav El. R. real state Ltd. signed an agreement for the purchase of the full rights in a portfolio that includes 11 profitable real estate assets in 11 cities in Germany, for a total consideration of approximately 11.3 million euros.

Real estate in the headlines

In the periphery there is demand in the trade and office tenders, in the center much less (Globes).

The Elta factory in Ashdod will be evacuated (The Marker).