Law Firm Finances Fuel Potential Office Space Downsizing and Relocation

As with any industry, demand for law firms begets revenue and profits, and they govern the need, and willingness to pay, for office space. According to a Thomson Reuters review, the outlook for law firms isn’t on the sunny side of the street.

“The fourth quarter of 2022 saw law firms at their weakest point, year-over-year, as they measured up against the heights of Q4 2021,” the report said. “This mismatch resulted in the Law Firm Financial Index (LFFI) dropping to a new all-time low score of 30 in Q4 2022. Combined challenges to revenues, productivity, and expenses have nearly eaten through the record profit gains of 2021.”