WASHINGTON, DC–For the most part, law firms nationwide have been right-sizing their real estate footprints for the past several years. With a few exceptions — and unfortunately, the Washington, DC area is not among them — this will continue, according to JLL's Annual Law Firm report.
According to the report:
Leverage remains strongly in law firms' favor as both free rent and tenant improvement allowances have grown by 25-30 percent since 2013, negating growth in face rates and resulting in declining net effective rents for landlords.
Supply will outpace demand through 2021, shifting vacancy from 15% to 20% and resulting in a 10–15% decline in net effective rents over that time frame.
“In the class A trophy space it is a tenant market right now and there are no market forces out there that will change that,” Bobby Blair II, VP with JLL tells GlobeSt.com.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
