Legal Sector Leasing Trends

David Smith • 5/4/2023

Access the latest legal sector occupancy trends and national leasing activity.

Overall, legal occupier demand has both recovered and evolved. Workplace strategies for law firms have shifted considerably in light of changing associate preferences and the increased prevalence of remote and hybrid work arrangements. As a result, law firms are increasingly looking for flexible and sustainable workspaces that can accommodate the latest technology and support the well-being of their attorneys and staff. Total leasing activity has increased as of late, higher than pre-pandemic levels, despite the wide-spread right-sizing prevalent among firms of all sizes. Furthermore, firms have shown a preference for efficient, high-end office space and have been forgoing renewals for in-market moves to get it.

How the Legal Workplace Is Changing

Shifting Space Allocations
Staffing Efficiency/ Shifts and Career Growth Models
The Office Dilemma
Digital Transformation

Key Takeaways

Legal tenant demand recovered: Legal sector leasing activity reached a six year high as firms expanded operations in non-major markets

New leases outpace renewals: After a bump in renewal activity in 2020 and 2021, law firms return to long-term norms—many establish a new office or relocate in the same market

Sun belt markets increasing share of leasing activity: Recently firms have been growing their footprints more substantially in non-major markets, especially in the Sun Belt region of the U.S.

Firms look to reduce square footage and optimize space: Larger Am Law Top 50 firms more aggressive in space reduction strategies

Associates value balance and flexibility: The importance of flexibility and autonomy over both where and when associates work has grown since the onset of the pandemic

Authors

David Smith

Head of Americas Insights, Global Research
Atlanta, United States

+1 (404) 853-5310

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John McWilliams

Senior Research Analyst
Denver, United States

+1 (303) 3124233

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