What Happened
New Trend Emerges As High-Tech Companies Cut Back
Israel’s office market is experiencing a significant shift, with defense technology companies replacing high-tech firms as the primary drivers of demand. According to Colliers Israel, defense companies leased 32% more office space in the first half of 2026, reaching over 140,000 square meters. This trend is driven by the expansion of companies such as Rafael, Elbit, and Israel Aerospace Industries, as well as smaller defense-tech startups. The shift is attributed to the growing importance of defense technology in Israel’s economy, with industry officials noting that defense companies are more stable tenants and require larger spaces. This was first reported by Ynetnews.