Sherry Cushman of Cushman & Wakefield Cushman says the use of technology is becoming “the new disruptor in the legal industry.”

WASHINGTON, DC—Law firms across the US plan to grow headcount but also to reduce the amount of space required to house attorneys. That’s among the long-term trends identified in the latest annual survey of the legal sector, conducted in partnership with ALM Legal Intelligence, sister organization to GlobeSt.com. Bright Insight, the 2017 National Legal Sector Benchmark Survey, also sees firms confronting the challenge of carefully balancing the influence of a younger generation of lawyers, evaluating the value of disruptive technology and planning for long-term succession.

“With real estate being the biggest expense for firms, excluding salaries, we are seeing a continued shift to rightsizing and incorporating new workplace strategies that help firms lower the cost of their footprint, while improving operations and client services,” says Sherry Cushman, executive managing director and leader of Cushman & Wakefield’s Legal Services Advisory Group. This year’s report is based on a survey of more than 1,500 individuals from law firms across the US, with 48% of respondents representing national or global organizations and the balance reporting from regional or single-office firms.

The report charts a continued move to compensation models that stress business creation and evaluation of bottom-line results. With competitive fee structures cited as the #1 issue for business competition and attorneys leaving law firms to take in-house counsel positions, firms are closely evaluating the influence of these unique challenges on their competitive balance, according to Cushman & Wakefield.

Although generally seen among the most traditional of office-using sectors, law firms are looking ahead, judging by the LSAG survey. Twenty percent of survey respondents said their firms plan dramatic changes in overall structure over the next five years, while 81% plan to implement single-size offices over the next decade. The survey also sees a future trend of attorney hoteling.

“We are seeing how the use of technology is becoming the new disruptor in the legal industry,” especially in the view of associates polled for the survey. “Technology is allowing attorneys to work more efficiently and effectively outside the office,” Cushman says. “Coupled with the expanding use of artificial intelligence in the legal sector, smart law firms are looking for ways to harness these new innovations to increase their profits while reducing operating expenses.”