Record Legal Leasing Strength Continues to Redefine the Office Market
Law firms remain a consistent source of demand in the office sector, with leasing volumes reaching record levels for four consecutive years. This year is off to a strong start with firms leasing 4.6 million square feet in Q1 alone, one of the strongest openings on record.
Most legal leases reflect stability or growth, with expansions rising and downsizing becoming less common in recent years, signaling sustained confidence in long-term growth expectations and the importance of the office for law firm performance.
At the same time, a sharp decline in new office construction is tightening supply, pushing firms to compete for high-quality space and increasingly favor renewals or repositioning existing assets.
Workplace Design Evolves Alongside Legal Industry
Law firms remain firmly anchored in the office, with 90% requiring at least three in‑office days—well above other industries—underscoring the workplace’s central role in legal operations. Today’s office must do more: foster relationships, support client engagement, enable focused individual work, and provide access to critical technology. While attorneys spend 41% of their time working independently, proximity still drives mentoring, collaboration, and career development. Firms are investing in high‑quality, amenitized spaces that enhance well‑being and client experience, even as cost and technology integration pose challenges. Ultimately, the legal office is evolving into a multifunctional hub balancing productivity, culture, and premium client-facing environments.
AI Adoption Accelerates, and Becomes a Competitive Differentiator
AI has rapidly evolved into a central pillar of law firm strategy, with adoption rising from 17% of firms in 2023 to 62% today and expected to exceed 80% in the near future. Firms are expanding AI use from research and document management to more advanced analytics, while larger firms move fastest into sophisticated applications.
Investment is keeping pace, with most firms increasing technology spending to drive efficiency and strengthen talent strategies. At the same time, challenges around accuracy, governance, and training highlight that successful AI adoption requires more than just investment. Law firms are increasingly hiring to meet these challenges—both increasing job postings for attorneys with AI practice group experience and non-attorneys with AI skills to support implementation, management, and training with AI systems.
