Tel Aviv Light Rail: Still Not Quite on Track

Remember that slogan "Hard now, Light (Rail) later"? Well, we're still stuck in the "hard now" part. Just ask any retail space owner near Tel Aviv's Red Line stations. Unlike Paris, New York, Rome, or London, retail around our light rail stations hasn't taken off yet. Here's why:

Our numbers tell an interesting story:

• Lower absolute population (potential customers) compared to overseas markets
• Only 38% of projected ridership actually using the system
• Many businesses couldn't survive the construction period's "revenue curfew"
• Just 3 days of real commercial activity (Tuesday-Thursday) due to tech workers' long weekends
• Delivery culture explosion (try catching an elevator between 11:30-14:00 - it's all delivery people!)

From my informal survey: Many of my clients and friends haven't even tried the light rail once. We're still mentally gravitating towards our cars, and our commuting habits haven't shifted.

The challenges are significant:

• Setup costs around ₪10,000 per square meter
• High interest rates
• Business owners expecting property owners to cover setup costs
• Years of political and geopolitical instability making even the most active entrepreneurs cautious

The future is in "grab-and-go" businesses - think quick coffee stops and convenience stores.

We're a nation that's always in a hurry, after all. Destination dining and shopping? That'll take more time.

But Here's the "However" Moment. This is just the current snapshot. It's a matter of time until we adapt and embrace the light rail. After all, we waited 72 years for this. With Additional lines and metro coming:

• Congestion fees pushing more people to public transit
• Aggressive urban planning for housing and businesses
• Our unstoppable consumer culture
• The "Light" part of that slogan will eventually come true.

Commercial real estate in Israel

Shemen Real Estate Maniv Ltd. entered into an agreement for the purchase of capitalized lease rights in real estate and a building in the Barkan industrial area in Samaria, designated for industry, a plot of land with an area of about 25 dunams and a building on it with a built-up area of about 15,500 square meters, in exchange for about NIS 90.7 million.

A subsidiary of the Hajj Yazom Real Estate Ltd. entered into an agreement for the sale of the Salama MOMA project in Tel Aviv for 150 million NIS.

Commercial real estate overseas

A partnership of Aloni-Hatz Properties and Investments Ltd. signed a non-binding memorandum of understanding, to transfer full ownership of 3 properties to JPM when they are free of any debt.

A subsidiary of Mishorim Real Estate Investments Ltd. completed an agreement for the sale of the Courtyard Tucson airport hotel in exchange for approximately 14.9 million US dollars.

Real estate in the headlines

Congratulations to our friend Adi Dana on his subscription to the CEO of Azorim company.

Melisron in negotiations on land in Bat Yam (Globes).