Law firms have become one of the biggest forces in the U.S. office market, claiming a record share of leasing activity last year as they prioritized renewing and upgrading existing space over costly relocations.
According to Savills' Q4 2025 U.S. Law Firm Activity Report, legal industry leasing climbed to a record 10.1% of all U.S. office leasing—up from 9.6% in 2024 and about double the 5% share seen in 2018.
Last year in total, law firm leasing amounted to 10.5 million square feet, continuing a three-year upward trend. Average quarterly activity reached 2.7 million square feet, up from 2.5 million per quarter in 2024 and well above the 1.5 million square feet typical from 2020 through 2023. Activity in the fourth quarter, however, was "comparatively measured," Savills noted, suggesting either a momentary slowdown or the first signs of a broader cooling.
Renewals made up 57.1% of all 2025 leasing—a higher share than relocations or new openings and the third consecutive year that firms opted to stay put. Savills attributed this tendency to scarce trophy assets, particularly top-tier Class A space in major central business districts and to persistently high build-out and tenant improvement costs. Moving not only disrupts operations but also demands greater capital commitments in a market where construction pricing remains elevated.
Expansions still outpaced contractions, signaling confidence and moderate growth. These represented 38.5% of all renewals and relocations in 2025, a slight increase from 36.4% the year before. Many firms continued balancing "stay" and "go" strategies, enhancing existing offices through renovations and amenities while selectively moving into next-generation buildings.
Despite the dominance of renewals, several prominent relocations underscored the legal sector's ongoing appetite for high-quality addresses. Notable leases in the fourth quarter included Sidley Austin's 240,000 square feet at 2100 M Street NW in Washington, D.C.; WilmerHale's 201,000 square feet at 60 State Street in Boston and Kirkland & Ellis' commitments in both San Francisco and Boston totaling over 268,000 square feet. Other major deals were closed by Kilpatrick Townsend in Atlanta, Benesch in Chicago, BakerHostetler and McGuireWoods in New York, Simpson Thacher in Houston and Jones Day in San Diego.
Overall, Savills noted that Q4's top leases were spread more evenly across major U.S. markets rather than concentrated in a few traditional gateway cities, reflecting the increasingly diversified geography of legal office demand.
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