Law Firms Reduce Space While New Efficiencies Unclear

The amount of office space per attorney in America’s biggest law firms is decreasing for both partners and associates, but whether that has produced the efficiencies expected is not clear. “Despite the dramatic shift in space planning, actual efficiencies per reported attorney have been sluggish to decline to target levels,” according to Savills’ new Legal Tenant 2024 Law Firm Benchmarking Report.

Among the 1,400 AmLaw 100 firm locations studied, the actual square-foot-per-attorney space allocation was on average much higher than the 500-750 SF/atty target metric most firms plan for, it noted. Of the firms analyzed, 30.4% fell within a 750-1,000 SF/atty range, while 37.3% exceeded 1,000 SF. In almost 18% of cases, the ratio was more than 1,250 SF/atty. “The average efficiency of AmLaw 100 offices is 937 SF/atty,” it reported.

Savills said there could be several reasons for the discrepancies between the goal and reality. With offices not fully occupied, the SF/atty metric increases even if space is efficiently configured. Or firms could preserve the unused space to allow for future growth, house contract attorneys, or accommodate summer associates. Firms that allocate space by practice group may leave space between them. In addition, firms may find it more economical to remain in a less efficient location than to take on the cost of renovation.

“There are many legacy leases with old-style configurations that one would expect to see replaced with more efficient spaces as time passes,” Savills noted.

Among the nation’s top 25 law firms, 38.1% allocate 750 SF or less per attorney compared to 61.9% who provide more. Among the top 25-100 firms, 30.4% assign 750 SF or less per attorney, and 69.6% allow more.

Space allocation also varies considerably among core legal markets. In Houston, the average ratio is 1,023 SF/atty, 909 SF/atty in Washington, DC, 895 SF/atty in New York and just 835 SF/atty in Los Angeles. “The culture of cities and regions also drives diverse office sizes and levels of administrative support,” the report commented.

The analysis showed evidence that law firms are reducing their space use over time. Leases due to expire within three years average 937 SF/atty, but the figure drops to 897 SF/atty for leases expiring in 15 years or more. Of the firms whose leases were studied, 44.4% plan to expand, 37.8% plan to downsize, and 17.8% expect little change. Firms planning expansion, including renewals and relocations, increased their footprint by 30.7% on average, and those planning to downsize decreased theirs by 39.9%.

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