ORANGE COUNTY-Rightsizing among law-firm tenants in Orange County continues to take place, but not at the level that was so common in the post-recession period between 2009 and 2012, according to Jones Lang LaSalle. While a year ago, many firms were still shedding excess space as a result of staffing cutbacks and others were attempting to renegotiate existing leases to take advantage of the market rent discounts, today leasing activity among law firms is quite different.

Competition for space among law firms is poised to increase in the next year, since the amount of full floors in class-A towers in the Airport Area market is dwindling, the firm reports. However, comparable options in Central County's class-A market are still plentiful and will become an alternative to law firms that are unwilling to pay a soon-to-be premium for locations in Irvine, Costa Mesa and Newport Beach.

JLL predicts that it is highly unlikely that the level of demand from the Orange County law-firm sector will spark any new construction in the near future. However, with growing demand for quality space in Irvine Spectrum and Newport Beach, whispers of speculative construction are becoming more common.

JLL also reports that this sector will find more competition from the county's other industries, including financial services and technology firms, which are expected to be drivers of activity into 2014 and 2015.

Other challenges include law firms finding evaporating options in high-quality office towers located in the popular submarkets, and there is expected to be a sharp increase for class-A rents, particularly in Irvine Co.-owned towers.

The good news for law firms is that options for class-A space in Central County are still prevalent, which is holding back rent increases in that submarket. Although tenant demand is growing, rental rates remain low relative to historical peaks. Also, landlords of class-A office buildings, outside of the Irvine Co. portfolio, remain progressive in hopes of filling vacancies, according to JLL.

As GlobeSt.com reported earlier this month, Gregory F. Hurley has joined Sheppard, Mullin, Richter & Hampton LLP in its local Orange County office as a partner in the firm's business trial practice group. The accessibility litigator brings to the firm his nationally renowned expertise with the ADA and Fair Housing Act.