JFrog signs $195M lease for new Tel Aviv headquarters
Software company takes 60% of East& Tower as part of a potential 13-year agreement, cementing its long-term presence in the city.
Israeli software company JFrog has leased 20,000 square meters in the East& Tower, developed on Totzeret Haaretz Street, in a transaction that could reach NIS 650 million (approximately $195M) if all extension options are exercised, over a period of 13 years.
The lease covers 60% of the office space in the tower, which totals 32,000 square meters. With the deal signed, Blue Square Real Estate has achieved full occupancy for the building’s office space.
Under the agreement, JFrog will establish its Israeli headquarters in approximately 15,000 square meters of space, with an option to expand by another 5,000 square meters. The company will occupy 12 floors (14–25), each spanning 1,270 square meters, with an option for four additional floors (1–4).
The base lease is for 6.5 years, with two renewal options of 3.5 years and 3 years, for a total of 13 years. BSRE expects to earn NIS 500 million if only the lease terms are exercised, and an additional NIS 150 million if JFrog also takes the extra floors.
Following the deal, BSRE updated its annual NOI forecast for the project upward to NIS 60 million, compared to its previous projection of NIS 25–30 million.
Founded in 2008, JFrog develops continuous software update tools. The company is listed on Nasdaq with a valuation of $5.6 billion, its stock rising 63% since the beginning of the year. JFrog currently works out of three floors in the Recital Tower in Tel Aviv and offices in central Netanya, which it is expected to vacate.
In recent years, JFrog has expanded its operations significantly, partly through acquisitions, most recently the purchase of Israeli firm Qwak for $230 million last year.
