HLW’s Post

Interesting article from the The New York Times including a quote from our colleague, DAN ARENDS about the continuing evolution of office space in the legal industry. Key takeaways: - The rule of thumb used to be 1,000 square feet per lawyer, but the new benchmark is closer to 600 square feet. - Lawyers of all seniority, including the so-called rainmakers, now sit in offices of similar size with uniform furniture - Consistency also means flexibility — rooms can easily be transformed for different uses - Long, dark hallways with filing cabinets and even physical law libraries are being replaced by digitized document storage systems - Leasing less office space often does not always translate to savings if firms are moving to a new Class A location, even if the footprint is smaller - As law firms move to virtual hearings and remote proceedings in the wake of the pandemic, conference rooms with the newest AV capabilities are imperative - Architects are being asked to design spaces with much more natural light, including glass doors in office spaces and few less-efficient interior spaces, along with improved artificial lighting throughout - Attorneys are increasingly being asked to commit to a 3-day work week, and many firms are delivering their lawyers new spaces in recently delivered projects complete with collaborative areas, wellness rooms, fitness centers, internal stairwells, and on-site entertainment options

Savills' 2024 Law Firm Benchmarking Report reveals some real eye-openers about office space efficiency for the top law firms. Here’s the scoop: - The average office uses 937 square feet per attorney. That’s way more than the target of 500-750 square feet. - Lots of firms are stuck in old, inefficient leases. - Only 30.4% of firms hit the 750-1,000 square feet range, while 37.3% are over 1,000 square feet. Why does this matter? Inefficient office space means higher costs and empty desks. This could cost your firm big time and hold back growth. What can you do? - Cut down the square footage per attorney. - Use flexible workspaces. - Move to more efficient layouts. What’s in it for you? - Save money. - Use space better. - Create a better work environment that boosts growth and productivity. Some cities are doing it right. Los Angeles averages 835 square feet per attorney, and Houston is at 1,023 square feet. Location-specific strategies can make a huge difference. How is your firm handling office space? Let’s connect and figure out how to make your space work better for you! #LawFirms #OfficeSpace #RealEstate #StrategicPlanning #TenantRepresentation Savills North America Read the full report at the link in the comments 👇️

In 2023, the U.S. legal industry significantly increased its office space leasing, totaling 16.9 million square feet, the highest since the pandemic and surpassing pre-pandemic years. This trend signals a divergence from broader market patterns, with law firms actively returning to offices and making long-term real estate commitments. Notably, a major deal by Paul, Weiss in Manhattan represented the largest office lease in the U.S. last year. The sector's focus on premium buildings indicates a competitive market for top-tier spaces, affecting overall office market dynamics. While some firms are downsizing or optimizing space, a notable portion is expanding, reflecting a nuanced approach to post-pandemic office needs. The legal industry's leasing activities offer insights into evolving office market trends, emphasizing the value of physical office spaces in business strategies. #smartcap #redmond #kirkland #bellevue #leasing #lawoffice #legalindustry #leasingactivity #officespace

There are numerous ways that CORT can assist Law Firms in setting up their office space to address today's challenges. This article outlines why partnering with CORT can be a successful strategy for your firm's short-term and long-term success. #OfficeSpace #LawFirms #CORT

One industry in particular is standing athwart history and doubling down on the importance of physical office space: law firms, reported Commercial Observer. "Law firms in the U.S. leased some 12 million square feet of office space through the first three quarters of 2023, said David C. Smith, head of Americas insights for brokerage Cushman & Wakefield (CWK). Fourth quarter numbers were still being finalized by press time, but, should 2023’s pace endure, it would exceed the 14.8 million square feet the legal industry leased in 2022 — and would set a new annual record." "The trendlines certainly lean in favor of a record. According to a preliminary C&W analysis, legal sector leasing through the first three quarters came in just 1.6 percent lower than the same nine months in 2022, a spokesperson for the brokerage said in an email. (Fourth quarter numbers from brokerage JLL (JLL) showed 6 million square feet of Manhattan office leases, with law firm deals comprising the bulk of that.)" #unitedstates #office #leasing #lawfirms

There’s been a lot of chatter about the decline of office spaces, but the reality is far more nuanced. While some sectors are contracting or shifting to virtual models, others, like law firms, continue to show strong demand for office space. Here’s a closer look at the evolution of Office space, and law law firm leasing activity. According to Savills, U.S. law firm activity report for Q1 2024, as highlighted by Scott Baltic at Commercial Property Executive, law firm office leasing is not only holding steady but actually rising: • Increased Leasing Activity: The first quarter saw a robust 1.7 million square feet of law firm office leases, outpacing the average since 2020. • Relocations on the Rise: Relocations accounted for 54.1% of leasing activity, up from 44.0% in 2023, with many firms moving to newer, high-quality buildings. • Longer Lease Terms: Firms are now more confident in making long-term commitments, moving away from the short-term extensions prevalent during the pandemic. In my experience, I see a substantial number of buildings with the professional tenants growth, are predominantly law firms. This aligns with the broader market trend, reaffirming that law firms continue to be dominant tenants in the professional space, as well as others. This trend highlights a “flight to quality,” where the demand is not limited to modern amenities but extends to factors like prime locations, excellent accessibility, and proximity to major retail and restaurants. The two buildings (95k & 120k) I’m currently involved with are notable examples—they are the largest in the market, with one being the tallest, showcasing that quality is multifaceted and continues to attract tenants. While virtual assistance and telemarketing can thrive remotely, sectors like legal services demonstrate that the demand for quality office space is still very much alive. Stay tuned for more insights as we navigate this dynamic landscape! The Eider Group at Marcus & Millichap #OfficeSpace #LawFirmLeasing #CommercialRealEstate #MarketTrends #QualityRealEstate

Law firms are adapting to the future with modern spaces that fit their needs, whether it's hybrid work or sleek Class-A offices. Gone are the days of one-size-fits-all offices. Click here to read more about the changing legal landscape and how firms are innovating their workspaces: https://bit.ly/3z6w93e

Law firms are one of the most active Office Tenants in the current market. Why?? Talent Attraction - Upgrading to Class A spaces and upgrading spaces allows firms to attract the next generation of legal professionals. Seizing opportunity - Many firms are taking advantage of a soft office market to maximize leasing concessions. Consolidation - New hybrid workplace practices often times allow firms to consolidate multiple offices or reduce overall office footprint. Gone are the days of clunky law offices. If you or your firm is interested in discussing relocation / renewal options, please DM, call or email me at 616-340-2553 or andrew.bower@freg.com #lawfirms #officespace #leasing #detroit #commercialrealestate

In 2023, U.S. law firms led a remarkable resurgence in office leasing, securing over 16.9 million square feet, indicating a robust demand for premium office space. This trend not only highlights the legal sector's resilience, but also signals a positive shift in the office market, driving future leasing activities. https://lnkd.in/gJTA7Fmq

Law firms leased 3.2 million sf of office space in the first quarter, surpassing previous highs in 2019 and 2021. The evolving trend towards hybrid work, with 2 days remote and 3 days in the office, offers attorneys flexibility for collaboration and performance. #denverofficespace