Law firms have been the last stand of traditional workplace strategy. Even as creative office, workplace hoteling and open space designs have grown in popularity, law firms have largely kept their traditional-style workplace design. However, the pandemic is unraveling that. A new report from Savills shows that law firms are breaking with the traditional model and adopting day-officing, a term that Savills uses to collectively describe hoteling, agile or remote working policies.
According to the firm's most recent research, 41% of law firms are either already day-officing or are planning to implement a day-officing strategy and another 48% of law firms are interested in an alternative-type of workplace strategy and is continuing to evaluate work formats. Only 10% of law firms are not interested in pursuing or investigating these strategies.
This is a big shift for law firms, and it will likely be an opportunity for companies to reduce their office footprint. However, Savills isn't necessarily expecting a major reduction in office usage. The report notes that rightsizing will occur on a company-to-company basis. Practice mix, the generational makeup of the firm, market pricing of office space and cultural considerations will all determine a company's office usage and office reduction. However, companies that have implemented day-officing have decreased their office footprint by 20% to 30%, so there is potential for a significant decrease in law firm office leasing.
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This isn't necessarily a new concept for law firms. Many have seen the changing tides in office space for years, and wondered if there were ways to reduce per-employee square footage. The sheer nature of the law profession, however, has made it challenging, as does the culture. Working toward a corner office is quintessential to law firm culture. Law firms were slowly exploring new workplace policies, but the pandemic has not only accelerated that trend forcing law firms to experiment and find what works.
Law firms aren't the only companies that are questioning the future of their office space. In many ways, the pandemic has accelerated remote-working trends universally. Today, more companies are considering permanent remote work strategies, which would include shedding office space completely. Other companies are considering a hub-and-spoke model or a hybrid strategy that combines remote and in-office work environments.
However, the office market has also shown a unique resiliency through the pandemic. Most office tenants currently have long-term leases with extension options, so it won't be surprising to see companies wait out the pandemic before making any permanent decisions around space usage.
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Kelsi Maree Borland
