Law firm leasing remains a strong segment of the U.S. office market, with 2025 shaping up to be one of the most active years on record as firms continue to prioritize high-quality and amenity-rich space.
Through the third quarter, law firms have leased 8.3 million square feet, well above the six-year average and on pace with 2024 totals, according to Savills’ Q3 U.S. Law Firm Activity Report, which tracks leases of 20,000 square feet or more. Third-quarter signings totaled 2.4 million square feet, a 29.5% increase year-over-year and the strongest third-quarter performance since 2018. As of Q3 2025, law firms accounted for 10.5% of total U.S. office leasing, surpassing 2024’s 9.6% share and more than doubling the sector’s roughly 5% share recorded in 2018.
Relocations represented 50% of all transactions in the quarter, up from 31.3% a year earlier, as firms increasingly seek upgraded, more efficient office environments. Expansion activity also rose, with 44% of renewals and relocations including expansions, up from 36.8% in Q3 2024. Overall, firms completed 6.7 million square feet of relocation and renewal deals, with expanding ones adding an average of 19,613 square feet and those that downsized reducing by an average of 23,130 square feet.
The third quarter featured several high-profile headquarters relocations and expansions, highlighting continued investment in core markets. New York led all markets with 28.7% of total leasing volume. Notable deals included Moore & Van Allen’s 206,000-square-foot Charlotte relocation, Keller & Heckman’s 57,186-square-foot move within Washington, D.C., Kanner & Pintaluga’s 77,699-square-foot new Boca Raton headquarters, and Latham & Watkins’ 119,082-square-foot New York expansion. Other notable deals included Ropes & Gray in Chicago and Sheppard Mullin in San Francisco.
Law firm leasing volume has steadily increased over the past several years, from 1.8 million square feet quarterly in 2018–2019 to 2.5 million square feet in 2024, with 2025 averaging 2.8 million square feet per quarter. Lease terms are stabilizing nationwide, with longer commitments in markets such as Boston, Houston, Dallas, Los Angeles and San Francisco, while flattening or declining in Chicago, New York and Washington, D.C. Rising in-office attendance mandates have further supported occupancy and sustained demand for physical office space, according to the report.
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