Monday.com eyes $200M office lease in Tel Aviv amid growth in revenue and personnel
Monday.com eyes $200M office lease in Tel Aviv amid growth in revenue and personnel
The tech firm’s move to lease 30 floors in Azrieli’s newest skyscraper in a 10-year deal reflects its skyrocketing ARR and aggressive expansion plans for a 2,500-strong workforce.
Software company monday.com is closing on one of Israel's largest commercial real estate transactions. Monday's rapid growth—in both revenue and personnel—is driving its search for new office space, just a few years after leasing the top 15 floors of the Rubinstein Tower on Yitzhak Sadeh St., part of the "Hassan Arafa complex."
Calcalist has learned that monday.com is evaluating several options and is in advanced negotiations with the Azrieli Group to lease 30 floors in the new Spiral Tower, currently under construction. If finalized, the deal will encompass one-third of the tower’s space, in a massive agreement valued at approximately NIS 800 million (over $200 million) for a ten-year lease. Monday has declined to comment.
Monday, whose current offices cover around 19,000 square meters, is seeking a much larger space, targeting 50,000–60,000 square meters. According to information provided to Calcalist, the price per square meter is expected to exceed NIS 100, meaning Monday would pay Azrieli roughly NIS 6–7 million per month, or approximately NIS 80 million ($21.5 million) per year. Additionally, the deal is expected to include a significant number of parking spaces. Currently, monday.com pays NIS 2 million ($500,000) for its offices in the Rubinstein Tower, where it shares space with the Herzog Fox Ne'eman (HFN) law firm. Although monday.com signed a ten-year agreement for its current tower, many contracts of this type include an exit clause after five years, allowing it to vacate the floors in 2026.
Founded in 2014 by Roy Mann and Eran Zinman, monday.com is traded on Wall Street with a market value of $15 billion, following a 70% increase in its stock price since the start of 2024. Monday recently announced that it has reached an annual recurring revenue (ARR) of $1 billion. Amidst this accelerated growth, the company, which develops organizational information systems, is also expanding its workforce, now totaling 2,500 employees, with approximately 1,100 based in Israel where the company’s headquarters are located.
Alongside organic growth, Monday has recently indicated that acquisitions are under consideration, which would further increase its workforce. The company concluded the first half of 2024 with revenues of $453 million, marking a 34% year-over-year increase, and transitioned to a profit of $22 million, compared to a similar loss in the previous year.
The Spiral Tower is currently being built by the Azrieli Group on the site of the historic "Yediot Ahronoth" building. Expected to be one of Israel’s tallest towers, the 91-story structure is slated for completion around 2026. With a total area of 150,000 square meters, it will include six levels of underground parking and a commercial floor connected directly to the Shaul Hamelech station of the city's Red Line light rail.
Azrieli has already announced that fintech company Rapyd has leased the top seven floors, totaling 14,000 square meters, for NIS 27.5 million ($7.4 million) per year. The tower will include commercial floors at its base, office floors up to the midsection, residential rental units comprising 171 apartments, and a hotel of about 250 rooms on the 90th and 91st floors, offering a 360-degree view. The tower is designed by KPF, the firm behind six of the world's ten tallest skyscrapers, in collaboration with architect Moshe Tzur.
