Companies looking to bring employees back to the office could take inspiration from law firms, which have been expanding their real estate footprint and adopting strategies to encourage in-person work.
Firms maintained robust office space demand through at least the third quarter of 2024, according to the most recent data available from Cushman & Wakefield. The report said third-quarter legal leasing activity reached 3.4 million square feet, which was slightly below post-pandemic averages.
That followed five million square feet of legal leasing activity during the second quarter. The firm said 2024 will likely close with about 15 million square feet of legal sector leasing, surpassing 14.8 million square feet in 2022 but falling short of record leasing in 2023 of 16.9 million square feet.
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By the end of 2024, the legal sector will have leased 18.1 million square feet of office space, a 7% increase over 2023 and 27% higher than the 14.2 million square feet in 2019. About 56% of law firms are office-centric, and 31% are hybrid.
Outside of the legal industry, it’s even more important to understand why law firms continue to acquire more space, especially when many other industries are downsizing—often opting for a "flight to quality," where they reduce space but upgrade to higher-quality environments.
According to a new video with Sandy Romero, head of life sciences and healthcare insights at Cushman & Wakefield, law firms spend on average 16% more than standard office-shell construction to outfit first-generation spaces, though this can vary widely by location.
“For example, in Phoenix, it’s as high as $37 per square foot, while in Minneapolis, it’s just $16 per square foot,” Romero said. “These differences reflect regional trends, firm priorities, and the unique needs of the legal sector.”
This is significant because law firms are “leading the pack in the return-to-office movement,” said Romero. Their spaces combine an office-centric culture with remote collaboration tools, such as audiovisual technology for depositions, remote court hearings, and client meetings.
The firms also invest heavily — between $75 and $334 per square foot, depending on location and extent of buildout — in top office design to “attract top talent and nurture their culture,” according to the company’s Fit Out Cost Guide 2025, Legal Sector. That includes top choices in furniture, construction materials, and upscale finishes. They aren’t luxuries, but necessities to get the people they need and have them come by the office more often.
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