Thursday, July 18, 2024

Law Firms Paid More for Less Space in 2023 as Downsizing Trend Continues

  • A majority of Am Law 200 firms reduced their real estate footprints in 2023, and most firms paid more per square foot than they did in 2022.
  • Competition for commercial real estate is heating up as the legal sector finished 2023 with its busiest quarter in leasing activity since late 2019.
  • Still, roughly 42% of the Am Law 200 took more space in 2023.
  • Larger firms had more success in controlling costs per square feet.

Speaking to The American Lawyer earlier this month from his office in downtown San Francisco, Morrison & Foerster chair Eric McCrath remarked on the firm’s shifting vision of a lawyer’s office.

As class A real estate commands “top dollar,” especially in the Bay Area, many law firms like Morrison & Foerster are cutting back from the standard 175-square-foot offices of the past, in an effort to bring the firm up to date in the digital, hybrid working era.

Read Full Story: https://www.law.com/2024/03/27/law-firms-paid-more-for-less-space-in-2023-as-...