When Tel Aviv's Shopping Mecca Loses Its Allure

Once the only luxury shopping district, rents at Kikar Hamedina have plunged and the square is distinctly down-at-heel; Lacoste took its crocs home, Vuitton packed its bags.

Something disturbing has come over Kikar Hamedina. The sparkle of the exclusive shopping district considered Tel Aviv’s answer to the Champs-Élysées seems to have fulled. Store rents have fallen 30% to 40% over the past few years while iconic stores such as Louis Vuitton and Lacoste have packed up and moved on. “For rent” signs hung on 10 uncharacteristically vacant...