IRVINE, CA—As the needs of the multigenerational workforce continue to evolve and be influenced by technology, law firms are placing greater emphasis on flexible work environments and enhanced collaborative design, JLL EVP Ryan Hawkins tells GlobeSt.com. According to a recent report from the firm, while the delivery of new class-A product in the Airport Area and Irvine Spectrum is increasing the number of space options in amenity-rich projects, these new deliveries are driving up rental rates throughout the market, and with much of the future development projects expected to focus on creative and campus-style buildings, law firms will have a limited number of new, traditional class-A space options in Orange County.

The report also stated that as other industries adopt new progressive workspaces, which is driving demand away from traditional-office development, law firms will look into implementing new space layouts and providing new amenities for their employees. Firms are also beginning to downsize their per-attorney space, following the trend of the rest of the office market: historic square footage per attorney in this market is between 1,000 square feet and 1,100 square feet, while rent per attorney has been $40,000; current square footage per attorney is 800 square feet to 900 square feet, and rent per attorney is $35,000.

We spoke with Hawkins about how OC law firms are adapting to creative and campus-style development projects and how they're keeping tabs on real estate expenses.

GlobeSt.com: With so many development projects expected to focus on creative and campus-style buildings in this market, how are law firms adapting to this type of space?

Hawkins: Orange County office development is just one factor that is influencing how the legal industry is occupying space locally. As the needs of the multigenerational workforce continue to evolve and be influenced by technology, law firms are placing greater emphasis on flexible work environments and enhanced collaborative design. While certainly slower to embrace than other industries, we are seeing law firms begin to incorporate flexible design elements that promote mobility within the office, an increasingly important element for younger attorneys. As this progression in law-firm design continues, the transition from traditional class-A space to creative or campus-style settings that cater to this type of design will not be as drastic a change as it would have been just a few years ago.

GlobeSt.com: As rental rates are driven up by this type of space, how are law firms keeping tabs on real estate expenses?

Hawkins: Law firms continue to be hyper-focused on profitability, so managing occupancy costs, a firm's second largest expense category, is a high priority. Driving revenue and creating an office environment conducive to attracting and retaining top talent, while controlling occupancy costs in an appreciating market, is a challenging task. The bottom line is firms are fitting more into less by continuing to reduce per-attorney square footage ratios. Firms are largely accomplishing this through investments in technology, which have eliminated the law library and file-storage rooms, while reducing the amount of space attorneys need for private offices and leading to one or two standardized office sizes. Meeting space that used to be incorporated into private offices is now allocated to small, shared meeting rooms, further reducing firms' overall footprint. Finally, technology is also enabling legal assistants to accomplish more work for a greater number of attorneys, further increasing attorney-to-staff ratios.

GlobeSt.com: What types of layout and amenity adaptations are firms implementing in order to get the type of space that works for law firms?

Hawkins: As law-firm space design evolves, so too does the amenity package supporting that design. Most prevalent has been the evolution of the break room/kitchen to a café as a central meeting place that encourages people to linger and communicate. Adaptations to the café include expanded coffee and snack selections, meal preparation, television and A/V and communal-dining arrangements. More glass on both exterior and interior private offices that allow more natural light to penetrate deeper into the open areas of the floor and influence the feel within the office will also continue. Most importantly, firms will continue to demand amenity-rich projects that provide the greatest selection of amenities and convenience across a wide-range of needs.

GlobeSt.com: What else should our readers take away from this report about Orange County law tenants?

Hawkins: While law-firm space design is evolving, it is doing so largely within the envelope of class-A floorplates. Although these new design elements certainly lend themselves to the new and planned creative-office campuses in our market, Orange County is not currently seeing a dramatic flight to this type of office product amongst the legal industry. By and large, law firms have focused on implementing these changes in amenity-rich class-A buildings, predominantly where most of their peers continue to be located.

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Are OC Law Firms Taking to New Creative Builds?

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