2023 Legal Sector Leasing Trends (May 2023)

Larger Am Law Top 50 firms more aggressive in space reduction strategies in 2022 F I RMS LOOK TO REDUCE SQUARE FOOTAGE AND OPT IMI ZE SPACE

KEY TAKEAWAYS

› On average, legal tenants who renewed or moved locations within the same market opted for 13% less space than they previously had. More than one-fifth of legal tenants renewed their leases without increasing or decreasing their space. › Firms with bigger starting footprints were able to reduce their square footage to a greater degree. › Larger firms (i.e., Am Law Top 50) have been more aggressive with their space reduction plans. › Contractions have also been more severe in high-cost Gateway markets.

Change in Lease Size by Geography & Firm Size

Change in Lease Size – All Law Firm Leases Over 10,000 SF

0%

600%

500%

-5%

400%

-10%

300%

-15%

200%

-20%

100%

0%

-25%

U.S. U.S. Am Law Top 50 Gateway Markets Gateway Am Law Top 50

-100%

0 50,000 100,000 150,000 200,000

*Gateway markets include Boston, Chicago, Los Angeles, New York, San Francisco, Washington, D.C.

Cushman & Wakefield | Legal Sector Advisory Group

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