DALLAS—Co-working spaces that cater to entrepreneurs and small business owners have been a hot trend in commercial real estate. Now, there is a new and equally significant trend with a niche audience: lawyers.
Some of these small and mid-sized firms often can't carry the burden of a large lease, so enterprising lawyers have come up with a solution of subleasing office space to other lawyers. Justin Utay, market director for NAI Robert Lynn, recently discussed this trend using an example from one of his clients, a Dallas-based personal injury lawyer, in this exclusive.
GlobeSt.com: Please share insight into the trend of lawyers subleasing space to other lawyers. How does this model differ from what's currently on the market?
Justin Utay: With this concept, a lawyer is able to obtain and lease a large space, then sublease offices out of that space. The main difference between this model and a standard co-working space is the ability to negotiate much more favorable rental rates for a higher quality finish with unique amenities. For example, my client's office contains a multitude of conference rooms ranging in size from a small breakout space to multiple large deposition rooms. The space also contains a common office assistant, break room and a copy/print room that all tenants in her space can use.
GlobeSt.com: What type of lawyers have you found to be interested in this opportunity?
Utay: This type of opportunity appeals most to smaller and mid-sized law firms. As rental rates have risen to historic highs, businesses are getting more efficient with space planning in order to office in class-A buildings. This model allows these firms to have the aesthetics and footprint of a larger law firm for a much smaller price.
GlobeSt.com: Can you tell us a little bit more about your client and her current office space?
Utay: As an innovative businessperson, my client knew this was an idea that she wanted to explore and went the extra mile when going through the space planning process. I was able to locate an existing tenant who had an ideal layout for her vision, as well as gorgeous finishes in place. We negotiated a full floor lease, which encompasses around 22,000 square feet.
What makes this space so unique is that it caters specifically to lawyers. Whether an attorney is conducting a deposition and needs a large room or a small room for a breakout meeting, there are more than five different conference areas from which to choose.
GlobeSt.com: Has she been able to successfully sublease?
Utay: She has been practicing in the DFW area for more than 20 years and has many connections with other attorneys who have already been reaching out to her with interest in leasing space. She currently has more space available and can provide offices ranging from a single attorney to a law firm of more than 7,000 square feet.
GlobeSt.com: Do you expect this trend to grow in the coming years?
Utay: Yes. During the past few years, I have started to see this trend more and more, especially along Dallas' North Central Expressway Corridor. We are already seeing larger law firms get more efficient with space in order to cut costs and still be in attractive buildings to recruit young talent, and I expect to see the trend continue to grow with smaller and mid-size law firms in order to grow their practices. The key to success is flexibility and low rates.
GlobeSt.com: How can other lawyers approach this concept?
Utay: With aggressive negotiations, otherwise, the economics behind this type of deal will not work.
As previously reported, brokers cooperate with LiquidSpace to secure subleases.
DALLAS—Co-working spaces that cater to entrepreneurs and small business owners have been a hot trend in commercial real estate. Now, there is a new and equally significant trend with a niche audience: lawyers.
Some of these small and mid-sized firms often can't carry the burden of a large lease, so enterprising lawyers have come up with a solution of subleasing office space to other lawyers. Justin Utay, market director for NAI Robert Lynn, recently discussed this trend using an example from one of his clients, a Dallas-based personal injury lawyer, in this exclusive.
GlobeSt.com: Please share insight into the trend of lawyers subleasing space to other lawyers. How does this model differ from what's currently on the market?
Justin Utay: With this concept, a lawyer is able to obtain and lease a large space, then sublease offices out of that space. The main difference between this model and a standard co-working space is the ability to negotiate much more favorable rental rates for a higher quality finish with unique amenities. For example, my client's office contains a multitude of conference rooms ranging in size from a small breakout space to multiple large deposition rooms. The space also contains a common office assistant, break room and a copy/print room that all tenants in her space can use.
GlobeSt.com: What type of lawyers have you found to be interested in this opportunity?
Utay: This type of opportunity appeals most to smaller and mid-sized law firms. As rental rates have risen to historic highs, businesses are getting more efficient with space planning in order to office in class-A buildings. This model allows these firms to have the aesthetics and footprint of a larger law firm for a much smaller price.
GlobeSt.com: Can you tell us a little bit more about your client and her current office space?
Utay: As an innovative businessperson, my client knew this was an idea that she wanted to explore and went the extra mile when going through the space planning process. I was able to locate an existing tenant who had an ideal layout for her vision, as well as gorgeous finishes in place. We negotiated a full floor lease, which encompasses around 22,000 square feet.
What makes this space so unique is that it caters specifically to lawyers. Whether an attorney is conducting a deposition and needs a large room or a small room for a breakout meeting, there are more than five different conference areas from which to choose.
GlobeSt.com: Has she been able to successfully sublease?
Utay: She has been practicing in the DFW area for more than 20 years and has many connections with other attorneys who have already been reaching out to her with interest in leasing space. She currently has more space available and can provide offices ranging from a single attorney to a law firm of more than 7,000 square feet.
GlobeSt.com: Do you expect this trend to grow in the coming years?
Utay: Yes. During the past few years, I have started to see this trend more and more, especially along Dallas' North Central Expressway Corridor. We are already seeing larger law firms get more efficient with space in order to cut costs and still be in attractive buildings to recruit young talent, and I expect to see the trend continue to grow with smaller and mid-size law firms in order to grow their practices. The key to success is flexibility and low rates.
GlobeSt.com: How can other lawyers approach this concept?
Utay: With aggressive negotiations, otherwise, the economics behind this type of deal will not work.
As previously reported, brokers cooperate with LiquidSpace to secure subleases.
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