Defense Tech Becomes Israel's Office-Market Growth Engine

New reporting on Colliers Israel data shows defense and security-technology firms have become the strongest growth engine in Israel's office market. The sector leased more than 140,000 square meters in the first half of 2026, up 32% from the prior six months, while companies are seeking another 145,000 square meters, about 30% of active demand. Rafael, Elbit Systems, Israel Aerospace Industries and younger defense-tech startups are expanding as global defense budgets rise and traditional high-tech firms remain more cautious. The shift is a real-estate signal of Israel's wartime innovation base, with laboratories, clean rooms and secure workspaces anchoring longer leases from Tel Aviv to the north.