SAN DIEGO—San Diego is still a secondary or even tertiary market for AMLaw 200 firms, and as such is physical unable to squeeze as much efficiency out of the highly competitive nature of this market, JLL's EVP Misty Moore tells GlobeSt.com. The firm recently released its law-firms perspectives report for the region, which revealed that San Diego law firms are still very conservative with their real estate decisions since the last recession.

According to the report, demand for San Diego law-firm space over the past few years has been stable at best, with many firms shedding excess and inefficient space. The focus is on reduction in square footage, efficiency in layout and better utilization of space. Yet San Diego is not as progressive as some other primary US markets in decreasing footprints—the average square footage per attorney here is still among the highest in the nation; depending on the firm, this is due to either vacancy (room for growth) or renewals in older space that has not been retrofit to new standard.

The report also showed that cost per attorney is high in the past year due to peak market pricing in the Downtown, UTC and Carmel Valley submarkets. Opportunities for law firms are arising in UTC and Carmel Valley based on existing law firms giving back space, plus the onslaught of new spec-office construction will further weaken the market. Downtown is still strong, and law firms don't have a lot of opportunities to take down space, whether new or second generation; Downtown will be behind UTC and Carmel Valley by a year or so in the next down cycle.