Cyber unicorn Cato cancels planned move into Fiverr's former Tel Aviv offices
Decision highlights growing caution in Israel's softening tech real estate market.
Shlomo Kramer and the management of Cato Networks have canceled the company's planned real estate expansion. The cybersecurity giant has decided that, given the current realities of the Israeli high-tech market, it no longer needs to lease an additional office building. The company has abandoned plans to move into the “Farmers' House” on Kaplan Street in Tel Aviv, which it was expected to occupy in 2027. Cato had been slated to replace technology company Fiverr in the building. Instead, it will lease an additional floor in the Landmark Tower, where its offices are currently located, bringing its total office footprint there to approximately 17,000 square meters.
Cato's decision reflects growing concerns in the office real estate market, which has stagnated amid structural changes in Israel's technology sector. The increasing adoption of AI tools, combined with the strength of the shekel, has contributed to cost-cutting measures and layoffs at several major tech companies, including Wix, Rapyd, Amdocs, and Playtika.
Cato develops cybersecurity solutions in the SASE (Secure Access Service Edge) category, which combines networking and security services for enterprise connectivity. According to company disclosures, Cato hit $350 million in annual recurring revenue in 2025, following 43% growth in 2024. In June 2024, the company raised $359 million at a valuation of nearly $5 billion.
The company is currently headquartered in the Landmark Tower near the Sarona complex in Tel Aviv, not far from Farmers' House, which it agreed to lease only earlier this year. The seven-story building, spanning approximately 6,400 square meters, was intended to accommodate around 500 new employees expected to be hired in Israel, as well as some of the staff from AI-powered security company Aim, which Cato acquired for $350 million last September.
In a statement, Cato said: "Cato has not canceled its hiring plans. The company continues to grow rapidly in Israel and globally amid accelerating demand in the AI security market. We currently have more than 260 open positions worldwide, including more than 100 in Israel. At the same time, we continuously evaluate our office-space requirements and the most efficient way to support the company's evolving needs. We estimate that, with the planned addition of the 37th floor to our existing offices, we will have sufficient space in Israel. Therefore, we no longer require Farmers' House at this stage."
