Palo Alto Networks eyes mega Tel Aviv campus after CyberArk deal
Cyber giant seeks up to 100,000 sq m as Israeli workforce swells to 2,600 employees.
Palo Alto Networks continues to surprise. Following its acquisitions of Israeli cybersecurity companies CyberArk and Koi, as well as its entry into the Tel Aviv Stock Exchange, the US-based cyber giant has begun searching for office space in central Tel Aviv that would allow it to consolidate all of its Israeli employees into a single campus.
According to market estimates, Palo Alto is seeking between 85,000 and 100,000 square meters of office space, comparable to the footprint Google leases across several locations in Tel Aviv. By comparison, Microsoft’s campus in Herzliya spans approximately 43,000 square meters, while Apple’s campus in Herzliya is expected to reach about 70,000 square meters following its expansion.
Palo Alto’s real estate expansion in Israel has accelerated rapidly. In 2017, the company leased four floors in Tel Aviv’s Alon Tower. Today, it occupies 19 of the building’s 40 floors, roughly 27,000 square meters.
The company currently employs around 1,600 people in Israel. Following the acquisition of CyberArk, that number is expected to rise to approximately 2,600 employees. CyberArk’s offices are located in Ofer Park in Petah Tikva and span about 28,000 square meters. Combined, the two companies already lease approximately 55,000 square meters.
The significantly larger space Palo Alto is now seeking suggests further expansion, either through additional hiring or through future acquisitions of Israeli companies.
The company’s search is focused on the area surrounding Alon Tower, where it is currently headquartered. Given the scale of the space required, available options are limited.
One potential candidate is Azrieli Group’s Spiral Tower, currently under construction on the former Yedioth Ahronoth complex site. The tower is planned to rise 91 stories and will include approximately 150,000 square meters of space.
Another possibility is ToHa2, a 77-story tower expected to offer about 160,000 square meters. If availability there proves limited, Palo Alto could consider the future ToHa3 tower, although its completion timeline may not align with the company’s expansion plans.
Slightly north of the area, on the Tel Aviv-Givatayim border, the Beyond Tower project, developed by Union and Tidhar, presents another option. The mixed-use development will include an 80-story office tower with approximately 130,000 square meters.
Assuming average rents in the area of around 150 shekels per square meter per month, Palo Alto’s annual lease costs could reach approximately 180 million shekels.
In response, Palo Alto said:
“We are currently in the very early stages of evaluating real estate options in Tel Aviv, with an eye toward future growth and the anticipated expansion of our workforce in Israel. This is part of our continued investment in Israel’s high-quality cybersecurity talent, through both recent acquisitions and organic growth.
“The planned campus is intended to consolidate our activities in Israel and serve as a shared hub for our local research and development, engineering, and support teams. This investment reflects our long-term commitment to the Israeli technology ecosystem and will ensure we have the infrastructure necessary to support expected employee growth in the region through 2030 and beyond.”
