In an era of changing work models, the evolving role of the office and the growing trend toward space optimisation in some sectors driven by rising costs, global real estate services firm Cushman & Wakefield takes a closer look at the legal sector’s needs and location decisions.
Office towers vs boutique tenement houses
Due to the nature of the legal business, law firms - more than any other industry - rely on the office as a showpiece contributing to building their market brand. As a result, they frequently choose prestigious buildings in central urban locations. Until a few years ago, law firms targeted almost exclusively renovated tenement buildings with stylish and elegant interiors that ideally complemented their image and added to their prestige. Although boutique law firms continue to favour this option in Warsaw, legal tenants have reported more diverse requirements in recent years, with global companies in particular increasingly opting for modern office buildings in an appropriate business setting.
“Analysis of leading law firms’ offices reveals that big corporates prefer large-scale office towers while most local law firms prefer to lease space in tenement buildings or other, smaller office buildings,” says Piotr Capiga, Deputy Head of Occupier Services Warsaw, Office Agency, Cushman & Wakefield. “An example of the latter is leases renewed by SK&S Law Firm and Wardyński & Partners, which decided to continue in their prestigious, smaller-sized locations,” adds Piotr Capiga.
“Recent skyscraper completions have also attracted some law firms from boutique office buildings - these included Greenberg-Traurig and CMS moving to Varso Tower, Bird & Bird and Wolf Theiss relocating to Central Point, and Eversheds Sutherland shifting its office to Widok Towers. Attractive office space was a key decision driver as the legal sector is a demanding tenant expecting the highest quality. Sometimes several law firms choose the same high-quality office building which subsequently becomes a ‘legal hub’. A good example of such a hub is Varso Tower. Another one is Rondo 1 - managed by Cushman & Wakefield - where law firms DZP and SSW Spaczyński, Szczepaniak, Wickel, Goździowska decided to renegotiate their leases and continue in their current locations, which only confirms that a well-located office building maintained to a high standard can remain attractive for years,” explains Piotr Capiga.
It is also worth noting that international law firms in particular frequently choose to significantly expand their office footprints upon relocation in order to accommodate some functions transferred to Poland from other countries and to secure a competitive advantage in the fight for top legal talent.
Elegant interiors vs changing employee needs
Law firms are interested not only in prime office buildings, high floors and prestigious locations, but also unique interior design. They place enormous emphasis on elegant, timeless design and the high quality of finishing materials while maintaining functionality standards.
“The key focus in office space layout planning is still on allocating space to individual uses. In comparison with other sectors, the transition of law firms towards flexible offices featuring diverse zones is far slower. Law firm offices are usually very formal and most feature cellular layouts. Some, however, are exceptional in that they serve as meeting places or platforms for employee integration and experience sharing,” says Mariola Bitner, Head of Workplace Strategy, Cushman & Wakefield.
Law firms choosing a new office should consider whether it will promote a diversity-friendly work environment aligned with corporate values and provide high-quality workspaces. According to new market standards, the office should serve as a platform for efficient employee collaboration and as a place where clients feel comfortable. The office should also be adaptable to evolving needs resulting from headcount changes or hybrid work setups.
“With up to a third of employees in large cities working hybrid, desk sharing and designing office space to accommodate various work styles have increased in popularity in many corporations. Our surveys of lawyers have found that more than half would like to work in the office at least two days a week, which is good news for employers,” adds Mariola Bitner.
The office serves as a company’s showpiece - not only for clients but also for current and future employees. To attract young talent, law firms should engage workplace strategy advisers to manage change. The younger generation of lawyers expect more dynamic and less formal workspaces.
“When it comes to office relocation or reconfiguration, it is good to have a well-thought-out change management plan - something that many companies still dismiss or misunderstand. Verifying change assumptions against the actual needs of employees and transparent and effective communication are key to change implementation and sustainability,” comments Mariola Bitner.
Amenities matter
Law firms typically enter into long leases for seven or ten years, largely to avoid the labour-intensive requirement to notify of address change in all ongoing court proceedings.“Eco-friendly solutions, LEED and BREEAM certifications, and ESG compliance are important matters during lease negotiations. Upcoming changes related to carbon footprint reporting will also apply to the legal sector. However, one of the biggest challenges facing law firms during lease negotiations is to secure adequate parking spaces that could also easily accommodate larger vehicles. Parking platforms or poorly designed parking lot layouts are likely to present a significant issue for legal tenants,” explains Piotr Capiga.
Cushman & Wakefield notes that the legal sector has recently seen ten law firms renew their leases in their current locations and ten move closer to central locations or higher standard office buildings. Law firms that decided to stay on did so because they were happy with the quality and location of their office space.