2023 Legal Sector Leasing Trends (May 2023)

LEGAL TENANT DEMAND RECOVERED

KEY TAKEAWAYS

› Law firm leasing activity slowed down in 2020 and 2021. However, legal sector employment has grown over the past three years, and firms have been increasing their office utilization. Accordingly, legal sector leasing activity rebounded and reached its highest level in 2022. › Non-major markets comprised 49% of legal sector leasing activity in 2022, their first year pacing the top 10 major markets. Firms are not moving out of major markets but have been aggressively expanding in secondary and tertiary markets. › Law firm leasing in 2023 Q1 was particularly strong with leasing volume higher than any previously recorded 1 st quarter.

Non-major markets a key driver as firms expand operations in smaller, lower-cost cities

Legal Leasing: All Markets

Legal Leasing: 10 Major Markets

16,000

16,000

14,692

14,249

13,064

12,000

12,000

12,360

10,908

10,892

8,000

8,000

8,756

8,558

7,587

7,072

6,967

6,625

2,226

4,000 Square Feet (Thousands)

4,000 Square Feet (Thousands)

3,630

0

0

2017 2018 2019 2020 2021 2022 2023 Q1

2017 2018 2019 2020 2021 2022 2023 Q1

*Major law firm markets include Atlanta, Boston, Chicago, Dallas/Ft. Worth, Houston, Los Angeles, New York, Philadelphia, San Francisco, Washington, D.C. Non-major markets encompass all other markets tracked by Cushman & Wakefield Research **2023 Q1 Figures are preliminary

Cushman & Wakefield | Legal Sector Advisory Group

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