Within the law firm segment, return to office policies are continuing to shape the post-pandemic market for space and there is an increasing perception that professional opportunities favor those who spend time in the office. As a result, space sharing is fading, overall footprints are stabilizing, as most law firms are not planning to make significant changes to their portfolios during the next three years.
This is according to CBRE’s recent law firm benchmarking survey, which polled 110 U.S. and international law firms about trends impacting real estate in the sector.
Most of these business entities surveyed said they are encouraging at least three days per week of in-person work and they expect office attendance to continue increasing. Meanwhile, about two-thirds of respondents indicated they are disappointed with current traffic patterns. Roughly 40% are working to change these patterns, but 25% said they don’t plan to make any attendance policy changes this year. Three-quarters of firms said they require at least an equal mix of in-office and remote work, with some mandating more in-person attendance.
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Law firms ranked attracting and retaining top talent as the leading driver of real estate decisions, but cost savings also factor into decisions. Many of them are tracking employee attendance with badge swipes to gain an understanding of office traffic and space utilization rates, the survey found.
With improved workplace experience ranking as a top priority for law firms, employers are using incentives including food and beverage, improved events, social programming and partner role modeling of behavior to attract people to the office. They are also focusing on efficient use of existing office space to save money and are less focused on future-of-work strategies, the report said. Progressive space planning strategies such as hoteling are not gaining much traction. Also, sustainability and artificial intelligence initiatives are having little impact on space planning decision-making, according to the survey.
Nearly half of the respondents have implemented universal office sizes for lawyers and an additional 27% are considering doing so. Fifty-five percent of firms have implemented or are considering desk sharing, down eight percentage points from last year.
Most plan to achieve efficiency by accommodating growth in existing space, sublease, or exits, or renovations, with only about 16% of firms saying they expect to expand their office footprint over the next year. Those who are looking for new office space said employee experience is a top building selection criterion. Other top considerations include proximity to retail, transportation, parking and lease flexibility.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
