New York City Dominates Global Legal Sector Office Leasing with One-Third Market Share in 2024

In the first half of 2024, New York City became the leader in global law firm leasing, contributing to one-third of all such activity worldwide, according to a report by Savills. With over 1.4 million square feet of office space leased out of a global total of 4.3 million, New York's prominence in the legal market is clear. The report highlights a growing trend toward securing high-quality office spaces, especially in the U.S., where top-tier spaces are in high demand and command premium prices.

U.S. Dominance and Space Needs

U.S. cities accounted for 69% of law firm leasing activity in the world's major markets, underscoring the influence of American law firms. U.S. law offices typically require more space due to lower occupancy density. Globally, while 23% of law firms are looking to expand their office space, 44% are maintaining their current footprints.

Shifting Office Solutions

Law firms are also moving away from traditional meeting room setups, opting for intelligent booking solutions that balance in-person and remote attendance. Mark Leonard of Lee & Associates notes that privacy remains a priority, which supports the ongoing demand for private offices. Collaborative areas and satellite offices are increasingly incorporated to accommodate the evolving work environment.

Hybrid Work and Office Design Evolution

Many law firms, both large and small, have embraced hybrid work models. However, the need for an appealing office space persists to attract talent. Pierre Debbas, co-founder of Romer Debbas, emphasizes that in-person collaboration and training are still essential to running a law practice, positioning the legal industry at the forefront of the office leasing market. Despite these changes, the demand for office space remains steady, though firms are rethinking how to optimize it.

Cost-Efficient and Multipurpose Spaces

Tere Blanca of Blanca Commercial Real Estate points to a shift towards more cost-efficient office spaces that focus on collaboration. Law firms are moving away from large, often underutilized offices, instead designing multipurpose areas that maximize space while supporting teamwork.

First Impressions and Sustainability

Office design remains crucial for law firms, with first impressions being a priority. Tiffany Scharpf, a design director at IA Interior Architects, highlights the importance of sustainability in materials and construction, allowing firms to showcase their commitment to environmental responsibility.

Smaller Offices and Future Lease Rollovers

Larger law firms are trending toward reducing their office spaces, with 79% of firms occupying over 100,000 square feet seeking reductions averaging 31%, according to JLL’s Law Firm Perspective report. Smaller firms, however, display mixed trends, with some expanding and others reducing their space. Law firm lease rollovers are expected to peak in 2027, with over 30 million square feet of leases set to expire across nine major markets.

Chicago's Legal Market Trends

In Chicago, smaller law firms have driven strong leasing activity, with demand focused on spaces around 10,000 square feet. However, such spaces can be hard to find, comprising only a small portion of available office and sublease spaces. Justin Kessler of Bradford Allen notes that landlords are responding by creating spec law suites designed with modern preferences in mind, such as communal workspaces and private areas for confidentiality.