2023 Legal Sector Leasing Trends (May 2023)

NEW LEASES OUTPACE RENEWALS After bump in renewal activity in 2020 and 2021, law firms return to long-term norms— majority establish a new office or relocate in the same market

KEY TAKEAWAYS

› In the immediate aftermath of the pandemic, law firms were more likely to renew leases—55% of 2020 law firm leasing activity was renewals. › Since then, leasing activity has returned to long-term norms. In 2022, 63% of square footage leased in major markets was part of new leases. In non-major markets the figure was 58%. › New leases dominated in New York City (90%), Chicago (71%) and Boston (69%), while renewals were more common in Philadelphia (56%), Atlanta (53%) and Houston (56%).

New leases account for 63% of 2022 major-market legal leasing

1600

New Lease

Renewal

10%

1200

56%

42%

800

90%

46%

36% 29%

400 Square Feet (Thousands)

53% 34%

44% 58%

31%

54% 64% 71%

44% 56%

47% 66% 69%

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Source: Cushman & Wakefield Research

Cushman & Wakefield | Legal Sector Advisory Group

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