A commercial building in West Rishon, which used to be known as NMC House, stood empty for a decade and a half and no buyer was found for it. Today, for the first time since its establishment, the building is in a state of full occupancy, and a diverse business activity is conducted in it, at the request of industries and fields. Shiye Nir tells how the place turned from a desolate property into a bustling business center Case story The building was built during the 1990s by the NMC company that operated in a third of the building’s area, and intended to rent the remaining area. In the first half of the year 2000, after about eight years, NMC left the place, after not being able to rent a single square meter of the area designated for rent. The building was put up for sale and in a short time was fully purchased by a public company that wanted to move its offices from the Ramat Gan area to Rishon Lezion. At the end of the day, the company decided to move to another location in the downtown area, and as a result put the building up for sale again. For 12 years (!) various brokers tried to sell the building without any success, until in 2013 the building was handed over to the exclusive care of the Yair Levy Strategy Real Estate Company which managed to complete its sales in less than two years. How did we do it? The building is in a sought-after area in Rishon Lezion, near the Ayalon routes and a train station, its price matched the market prices and in its vicinity, similar office spaces have been sold over the years. Are you aware that it has stood empty or only partially occupied for so many years? As soon as the building was handed over to our exclusive care, it was clear to us that the efforts made until now to sell the building had failed due to a wrong sales strategy employed by the various marketing entities that handled the building over the years. The main problem lay in trying to sell the building in its entirety, as one unit of three floors, 8,000 square meters and about 100 parking spaces. This significantly reduced the number of companies that might be interested in the property, and hurt the property owner’s ability to get the price he asked for. Our marketing strategy was therefore:
- Find a large body, which will purchase at least a third of the area and be an anchor.
- Market the The rest of the building in smaller parts, thus expanding the circle of interested parties. We have decided that the minimum size for the unit will be 320 square meters.
- To wait with the sale of the roof of the building until approval of the construction percentages is received which is expected to arrive during 2016.
The areas were offered to Yair Levy Strategy Real Estate clients and were published in various media, and in a short time an anchor tenant was found: a company engaged in the marketing of sports products which purchased 40% of the building. From here, the way was paved for the sale of the remaining areas: 800 square meters for a fashion design company 550 square meters for digital printing 550 square meters for a slimming products company 550 square meters for an air conditioning service company 400 square meters for an architectural office 320 square meters for a hi-tech company The secret of success in less than two years from receiving the property in our hands, and after two years Through the efforts of marketing and managing negotiations, the entire building was sold and for the first time since its establishment, almost 20 years ago (!) it is fully occupied. Through a correct and appropriate marketing strategy, we were able to create a WIN-WIN situation for all parties: • The consideration received by the seller–NIS 40,000,000– was higher than the price he asked for the property in its entirety. • The new buyers paid an average and attractive price per square meter for the area. • The new mix of tenants creates a stable work environment, fertile for everyone, and the building bustles with life. • The roof of the building has high potential, and is a very attractive destination for entrepreneurs and investors.
