While office leasing activity remains muted in the post-pandemic environment, law firms are proving to be an outlier. The legal sector is leasing premium space at record levels, a trend that signals a long-term commitment to high-quality real estate, according to Cushman & Wakefield’s new 2025 Bright Insight report.
Law firms leased 4.6 million square feet of office space during the first quarter, a 25% year-over-year increase and the strongest first quarter on record, the report said. That activity accounts for 8.4% of total leasing volume across the top U.S. legal markets.
“Law firms are not retreating from the office – they are reimagining it,” said David Smith, Cushman & Wakefield’s head of Americas insights. “They’re investing in space that supports talent retention, client engagement and the increasingly tech-enabled nature of legal work.”
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Legal leasing volumes have exceeded 2019 levels by 35% over the past five quarters, according to Cushman & Wakefield. This coincides with a plateau in square footage downsizing that characterized the 2010s for the legal sector. Since 2023, lease sizes on renewals have declined by less than 2%, which Cushman & Wakefield said suggests a new balance between efficiency and experience.
Law firms are far more likely to require attorneys to be in the office three days per week, an expectation that may be driving office space demand in the legal sector. About 56% of law firms expect attorneys to be in the office compared with 26% of tech and 39% of finance firms.
Law firms also indicate the primary purpose of the office includes fostering collaboration and relationships, meeting with clients and maximizing productivity and focus, according to the report. As such, law firms want office space to be thoughtful and flexible in its design to accommodate the shifting demands of a hybrid work environment.
The legal sector continues to migrate to top-tier buildings that offer flexibility, hospitality-style amenities and brand expression opportunities, according to Cushman & Wakefield. Future supply constraints may limit options for firms prioritizing top-tier buildings, however. Only 28 million square feet of new office space is under construction, down sharply from 136 million in early 2020.
The report also highlights how investments in artificial intelligence and digital infrastructure are influencing law firm strategy. Tech budgets are expected to grow from 4% to 5.5% of revenue, and firms are adapting both staffing models and space designs to align with increasingly tech-driven operations.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
