2023 Bright Insight: The 2023 National Legal Sector Benchmark Survey Results

05 L E G A L S E C TO R O F F I C E R E A L E S TAT E T R E N D S

Recently, Cushman & Wakefield has typically seen law firm clients looking to be in the 500-600 sf per attorney range, but each situation is unique. It is impossible to pin down an exact benchmark as there are a variety of factors that determine an appropriate ratio. A firm, law practice or specific office may have different needs that impact attorney-to-staff ratios, client centric space needs, and square footage per attorney. Individual buildings’ floorplate depths may limit how much efficiency a firm can enact and market fundamentals (e.g., rents, availabilities of desirable space, etc.) will influence workplace strategy. Law firms responding to the 2023 Bright Insight Benchmark Survey are currently allocating an average of 500 sf per attorney. A fifth of law firms indicate they have a ratio below 400 sf and 13% are above 700 sf per attorney in 2023. These numbers are not representative of the broader legal sector as 2023 Bright Insight Benchmark Survey respondents tend to be larger firms that have become more efficient with space allocation at a faster pace than the industry as a whole. That said, the trend towards

more efficient space is occurring across firms of all sizes and geographies. The target square-footage-per-attorney ratio for 2028 (i.e., five years from now) is 472 sf, which would represent a 5.7% decrease . Only 6% of firms expect to have over 700 sf of office space allocated per attorney in five years. The larger firms— those in the Global 100 or Am Law 100— have slightly more dense layouts, currently averaging 474 sf per attorney, and the five year target is an average of 461 sf. Interestingly, law firms are indicating they are likely to be in slight growth mode with their office portfolios in 2023 and 2024. About a third of respondents indicated their firm will decrease the size of their office real estate portfolio, 28% are planning on no change, and the remaining 42% are forecasting some sort of increase over the next two years. Of those expecting to increase portfolio size, the majority are planning on a moderate increase of 10% or less. On the other end of the spectrum, nearly one in ten firms is expecting to reduce their office footprint by 21% or more.

Firms expecting to increase overall portfolio size are not moving to less efficient layouts but are likely shifting space requirements and jobs to faster-growing, secondary markets and increasing footprints to accommodate attorney and staff growth. Even in those cases, the square footage per attorney ratio is going to be shrinking as firms grow more efficient with space and lean into hybrid work models for staff and attorneys. Over the next two years, do you expect your firm to increase or reduce the size of its office real estate portfolio?

28%

28%

13%

13%

8%

6%

3%

1% 0%

No change

31%+ increase

31%+ decrease

0-10% increase

11-20% increase

0-10% decrease

11-20% decrease

21-30%+ increase

21-30%+ decrease

Source: Cushman & Wakefield Research

Recently, Cushman & Wakefield has typically seen law firm clients looking to be in the 500-600 sf per attorney range, but each situation is unique.

14 | BRIGHT INSIGHT