Cybersecurity large Palo Alto Networks (Nasdaq: PANW) is increasing and can occupy half of the Alon 1 tower on Tel Aviv’s Yigal Alon Road. The corporate presently occupies 13 flooring within the Alon 1 tower, one in all a pair of an identical towers, and lately leased one other six flooring and is now in talks to lease your complete tower.
If the talks come to fruition, Palo Alto Networks can pay NIS 80 million per yr for leasing the workplace house, at a worth of NIS 100 per sq. meter monthly. The homeowners of the constructing, the Harel and Migdal and insurance coverage corporations, are contemplating promoting your complete constructing, which is price an estimated NIS 2.5 billion.
Palo Alto Networks stated, “Over the previous yr, our R&D middle in Israel has continued to develop together with our staff working completely within the workplaces, and so after months of planning we’ve got signed for addition house in Alon.”
Starting with 4 flooring
Palo Alto Networks’ workplaces in Israel started with 4 flooring within the Alon 1 tower, leased in 2017 for NIS 7.8 million yearly. Over time the corporate expanded within the tower, in order that with the newest lease contracts signed, it would occupy 19 flooring out of the 40 workplace flooring. The corporate is predicted to pay about NIS 40 million a yr to lease about half of the tower, with a spread in costs from NIS 108-135 per sq. meter monthly between completely different flooring, primarily as a result of dates of lease contracts from 2017 till at the moment. Occupancy of the extra leased flooring is predicted in phases. Two of the brand new flooring shall be occupied subsequent month and 4 extra throughout 2025.
Alon Towers includes two 42-floor workplace towers together with industrial flooring and a pair of,400 parking areas. The towers, on Yigal Alon Road close to Electra Tower, have been developed and constructed by BSR Group via a buying group on the location of a former manufacturing unit. Among the many members of the buying group have been insurance coverage corporations Harel and Migdal, who bought the rights to construct the northern tower “Alon 1”. The south tower “Alon 2” was constructed by BSR, via a buying group of dozens of consumers who purchased the workplaces for their very own use or for lease.
Palo Alto Networks is a cybersecurity firm, whose merchandise embody cloud-based programs. The corporate is traded on Nasdaq with a market cap of $105.8 billion, after its share worth rose over 30% prior to now yr. The corporate was based in 2005 in California by Israeli entrepreneur Nir Zuk. In 2012, the corporate was listed on Nasdaq and employs over 13,000 folks worldwide, of which greater than 1,000 are in Israel.
Wanting down on Verify Level Sitting on the prime of Alon Tower will enable Zuk to look down Verify Level Software program (Nasdaq: CHKP), the place he started his skilled profession earlier than leaving in 1999, following disagreements with founder and CEO Gil Shwed. At one time, when he was nonetheless a comparatively unknown entrepreneur in Israel, Zuk turned well-known after Palo Alto put up a billboard beside the Ayalon Freeway in Tel Aviv outdoors the workplaces of its main rival Verify Level, boasting that it had surpassed Verify Level. Plenty of water has handed alongside the Ayalon, and Verify Level (market cap $17.7 billion) is buying and selling at a fraction of Palo Alto.
Printed by Globes, Israel enterprise information – en.globes.co.il – on June 26, 2024.
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