Cybersecurity big 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 every of a pair of similar towers, and not too long ago leased one other six flooring and is now in talks to lease the whole tower.
If the talks come to fruition, Palo Alto Networks can pay NIS 80 million per 12 months for leasing the workplace area, at a value of NIS 100 per sq. meter monthly. The homeowners of the constructing, the Harel and Migdal and insurance coverage firms, are contemplating promoting the whole constructing, which is price an estimated NIS 2.5 billion.
Palo Alto Networks mentioned, “Over the previous 12 months, 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 signed for addition area 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 should occupy 19 flooring out of the 40 workplace flooring. The corporate is predicted to pay about NIS 40 million a 12 months 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 immediately. Occupancy of the extra leased flooring is predicted in phases. Two of the brand new flooring might be occupied subsequent month and 4 extra throughout 2025.
Alon Towers includes two 42-floor workplace towers together with industrial flooring and a couple of,400 parking areas. The towers, on Yigal Alon Road close to Electra Tower, had been developed and constructed by BSR Group by way of a buying group on the positioning of a former manufacturing unit. Among the many members of the buying group had been insurance coverage firms Harel and Migdal, who bought the rights to construct the northern tower “Alon 1”. The south tower “Alon 2” was constructed by BSR, by way of a buying group of dozens of consumers who purchased the workplaces for their very own use or for hire.
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 value rose over 30% prior to now 12 months. 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 Examine Level Sitting on the prime of Alon Tower will enable Zuk to look down Examine 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 exterior the workplaces of its main rival Examine Level, boasting that it had surpassed Examine Level. Loads of water has handed alongside the Ayalon, and Examine 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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