Law firm leasing is booming nationwide. In 1Q 2026 it reached its second highest total on record for a first quarter, as firms signed up for 4.6 million square feet. It also marked the fourth consecutive year of record leasing by law firms, according to a new national legal sector benchmark survey by Cushman & Wakefield.
Over the past four quarters, law firms leased 31% more space than in 2019 when office demand was at its peak. Activity has risen for several reasons. For one thing, legal headcount climbed almost 9% in the past decade – more than half in the last three years.
In addition, more firms are expanding than contracting. In 1Q 2026 44% of leases were expansions, compared to 38% in 2025. Less than one-fourth of leases were for less space.
And a shortage of new office space and slumping construction pipeline is driving many firms to renewals or phased renovations of existing space instead of big moves. Nevertheless, law firms also led the way in demand for Class A office space, outpacing other industries that have been slower to rebound and recover to pre-pandemic levels.
The phenomenon is not just affecting the top 10 biggest markets, Outside these metros, law firm leasing reached its highest level on record in 2025. "More than three-quarters of Q1 2026 leases were expansions or stable in size, reinforcing law firms' commitment to stability and measured growth," the report noted.
The law firm office environment is also changing with the times. Some partners may lose their extra-large offices as firms move to single-sized offices for attorneys. Over the past 15 years, some firms have downsized their footprints in search of greater space efficiency and less square footage per attorney, the report said – though more slowly than other industries. However, other firms noted they have set a target square footage per attorney that is higher than their current ratios due to practical considerations.
Office layouts have also been affected by digitization that has reduced the need for space for physical storage and law libraries and opened up space for collaboration and events.
Firms that renew their leases overwhelmingly maintain their existing footprints, and of those that changed sizes 20% were expansions compared to 14% that contracted. However, firms that signed new leases overwhelmingly chose to expand their footprints. Half of the largest downsizes in1Q 2026 affected leases over 50,000 square feet.
Meanwhile, competition for new high-quality buildings is intensifying as other industries, especially AI, along with banking, technology, professional, business services and other tenants push forward to challenge law firms for space. This could help owners of older buildings that, while less efficient, offer lower-cost leases.
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