US law firms are taking a mixed approach to real estate strategy in 2021. Following the recession, some law firms are pausing, taking a wait-and-see approach to workplace changes. Other law firms are moving quickly to take advantage of new opportunities in the office market. A new report from Newmark looked into these unfolding trends.

Law firms taking the conservative wait-and-see approach are responding both to the economic dislocation as well as the uncertainty about future office usage. Many of these firms haven't yet determined the new workplace strategies following the pandemic, including the mix of remote work and in-office work.

The uncertainty is stalling new lease activity. According to the Newmark report, law firm office leasing activity declined 41% from 2019 to 2020. Some law firms also put major expansion plans on hold. For example, AmLaw 100 firm based in New York and Washington DC put a 200,000 to 250,000 square foot New York office requirement on hold due to the pandemic.