Title: AI21 Leases 7,000 Square Meters in Tel Aviv’s Da Vinci Project
Subtitle: Tel Aviv Office Prices Drop in Pulsating Business District
Date: [Current Date]
Tel Aviv, Israel – AI21, a leading Israeli startup in the field of artificial intelligence, has just secured a significant deal by leasing approximately 7,000 square meters of office space in the heart of Tel Aviv’s bustling business district. The company will occupy two partial floors – the fourth and fifth – in the Da Vinci project, a prominent development at the corner of Kaplan-Leonardo da Vinci streets.
AI21’s lease agreement was made with Israel-Canada and private investors, highlighting the company’s commitment to expanding its operations and presence in the city. The leased space, comprising around 4,500 square meters per floor, offers breathtaking views of the Sharona complex and its central piazza.
According to reliable sources, the rental cost per square meter ranges from 140 to 180 shekels, which includes finishing works. This puts the annual rent at approximately NIS 15 million. Market estimates suggest that AI21 has secured a lease deal for a “very long period” of at least five years, with an option to extend for an additional five years.
AI21, founded in late 2017 by renowned entrepreneur Shashua, along with Prof. Yoav Shoham and Uri Goshen, specializes in artificial intelligence and has gained recognition for its popular Wordtune application. The app, launched in October 2020, enables users to improve their writing skills through AI-based suggestions.
The Da Vinci project, initiated by Israel-Canada and Acro Real Estate, is a significant development that includes two 42-floor towers comprising 412 housing units. Alongside residential space, the project also features a 10-floor office and commercial building spanning approximately 33,000 square meters.
This recent lease deal comes at a time when office prices in Tel Aviv are experiencing a decline, particularly within this area. Real estate analysts and experts are closely monitoring the market, evaluating the impact of the ongoing trend on the city’s overall housing landscape. Meanwhile, discussions are also underway regarding the affordability of apartment purchases, with only 20% of Tel Aviv residents able to afford housing within the city.
AI21’s expansion and their commitment to a long-term lease in the Da Vinci project is a testament to their confidence in Tel Aviv’s business potential and the city’s vibrant tech ecosystem. The deal highlights the city’s enduring appeal to innovative startups and reinforces its position as a global tech hub.
As the market continues to evolve and office prices fluctuate, Tel Aviv’s business district remains a hotbed of activity, attracting both local and international companies eager to make their mark in one of the world’s most dynamic cities.
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