Law firms have a history of supporting the office market. During the creative office revolution, law firms provided a lifeline to traditional office owners, and in the midst of today's office market correction, law firms remain fervent users of office space.

From the adoption of hybrid work styles to retiring the corner-office mentality, they are emerging as an example of how the office market will evolve, say Raymond Trevisan, CRE, executive managing director with Cushman & Wakefield and a member of the Counselors of Real Estate, and Anthony DellaPelle, CRE, the global chair of the Counselors of Real Estate, two experts in law firm leasing.

Law Firms Are the Center of Office Leasing Activity

Law firms are voraciously leasing office space, even as office demand in the US has fallen sharply. According to research from Cushman & Wakefield, law firms have accounted for 7.2% of office leasing activity in major markets, and firms have committed to 3.2 million square feet of space in the first quarter of the year alone. The activity exceeds leasing activity for the sector in1Q19 and 1Q21, and it puts law firms on track for another strong year of leasing activity.

"The legal sector has really been a bright spot in the office market over the past several years," says Trevisan. "Since 2022, the percentage of firms electing to increase their space has grown, and firms are relocating to new offices as opposed to renewing."

The trend of law firm office relocations has been advantageous to office owners hungry to secure tenants amidst a  growing supply of vacant space—and firms have benefitted from having ample options for new locations at attractive lease rates in many markets. According to Trevisan, as one of the few sectors expanding rather than contracting, law firms have more leverage in lease negotiations.

Redefining Office Use

Despite the impressive display of office leasing, law firm office usage is evolving. Like the rest of corporate America, most large firms have adopted a hybrid work schedule with attorneys and staff in the office three days per week, and in place of large corner offices, law firm office footprints typically have smaller partner offices.

While most firms consider hybrid work to be important for talent recruitment and retention—particularly among young attorneys—DellaPelle says that it is unlikely law firms will increase remote work beyond two days a week. "Most law firms have found that they are more efficient, productive and successful in person," he says. "We work better and we serve our clients better."

Still, in many ways, law firm spatial needs are growing. DellaPelle notes that law firms are opting for offices with ample communal spaces for collaboration, client meetings and large staff meetings. With the adoption of technology and digitization, law firms also need less space for files and resources and less space for support staff. As a result, DellaPelle and Trevisan expect law firm leasing activity to remain strong through 2025 and beyond.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.