Law Firms Grapple with 50% Surge in Office Construction Costs

Faced with soaring costs to build and operate office space, law firms are searching for ways to manage their budgets while meeting the needs of their practices.

The cost to build a typical law firm space in downtown Washington, D.C., has jumped 50% since 2019, according to Savills USA. At the same time, furniture costs have increased by 30%, and mechanical, electrical and plumbing (MEP) costs have risen by 15%. These substantial increases are not expected to continue, according to Savills’ executive director of project management, David Fletcher, whose experience includes building out more than one million square feet of high-end law firm space. “The market is not as volatile as it has been, and, over the last couple of years, post-pandemic conditions have eased demand,” said Fletcher.