Disruption Forces Law Firms to Re-imagine the Workplace of the Future

OAKLAND, CA—Law firm Burnham Brown’s Oakland roots date back more than 100 years. And recently, this Oakland staple recommitted to the city for several more years.

The firm right-sized its occupancy at 1901 Harrison St. from 40,000 square feet in two-and-a-half floors to 32,000 square feet in two full floors in a new direct lease. Burnham Brown was previously subletting a portion of its multi-floor space in the Uptown building, but its new lease term now runs on a direct basis with the building’s landlord, Starwood Capital Group. The law firm’s new agreement also reflects a commitment to occupancy on one of the floors for at least several more years.

“Prior to the pandemic, the legal sector was experiencing major workplace shifts at an accelerated pace, including investment in technology and office density,” said Sherry Cushman, who leads Cushman & Wakefield’s legal sector advisory group. “Now that the virus has impacted countries and economies on a global scale, the disruption has caused a dramatic pause in the legal sector, forcing firms to reconsider their business strategy as well as reimagine the future of the law firm workplace itself.”

Cushman & Wakefield’s Chris Johnke, managing director with Cushman & Wakefield’s tenant and legal advisory groups, handled the transaction on behalf of Burnham Brown. He said thinking outside the box led to a win-win result.

“This was a lengthy but rewarding process that began pre-pandemic but finalized over the summer,” said Johnke. “Our primary goal was assisting our client in helping reduce fixed costs and overhead through real estate, whereby we were able to work closely with the landlord to consolidate footprint while also negotiating an attractive deal package, all which has allowed Burnham Brown to navigate through the challenges of COVID-19 that has made it a far more difficult business environment to survive.”

All told, the landlord and the tenant were important in the negotiation, he says.

“There is a sweet spot in this deal for both parties,” Johnke tells GlobeSt.com. “Burnham Brown was able to terminate excess space that had multiple years of remaining term, achieve an attractive concession package and a tenant improvement allowance. The landlord was able to secure a term extension on a portion of the space near their pro-forma.”

The 17-story steel-frame structure also known as the Wells Fargo Bank Center was built in 1985 with a design by the architectural firm of Hornberger, Worstell & Associates, according to LoopNet. The building has three levels of subterranean parking.

1901 Harrison was named BOMA Office Building of the Year in 2006. The building was awarded an Energy Star label in 2009(87), 2012(88), 2014(85), 2015(90) and 2016(90) for its operating efficiency, according to LoopNet.

The Lake Merritt location in the central business district has BART and AC transit access to locations around the Bay Area. Lake Merritt is home to key financial institutions and tech startups.