Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
062022bimobilehero 062022bireporthero

Insights

Dallas Law Firms Seek High Quality Space to Attract and Retain Talent

Now more than ever, law firms are taking a thoughtful approach to their real estate decisions, using their physical space as a tool to bring both lawyers and staff back to the office, attract and retain talent, and create an environment that enhances overall collaboration, training, and energy.

For the last nine years, Cushman & Wakefield’s Legal Sector Advisory Group (LSAG) has conducted the Bright Insight report in partnership with ALM/American Lawyer. The report covers many aspects of law firm benchmarks and trends including real estate, strategy, business, talent, operations, technology, and the incredible impact that the pandemic has had on the legal sector and real estate decision making. 

According to this year’s survey results, 76% of firms anticipate making either dramatic or incremental changes to their workplace moving forward in addition to the changes they’ve already made to date. Across the legal sector, the workplace is quickly evolving to increase agility and workplace flexibility.  

In Dallas, law firms are certainly following the national shifts outlined in the Bright Insights report, however Texas law firms are traditionally slower to adopt these trends. This is crucial knowledge for firms seeking to relocate from other major markets or open additional offices in Texas. 

For example, nationally firms continue to downsize and right-size their real estate square footage with new target ratios of under 600 square feet (or less) for many law firms moving forward. In fact, 65% of firms indicated their target ratio in the next five years will be 600 sf or less. However, Dallas’ ratio is closer to one per 700 sf with spaces that have been designed in just the last 36 months. Lease sizes though are smaller on average, and as legacy law firms approach lease expiration, we expect they will take reduced square footages based on efficiency. 

Nationally, overall occupancy in 2021 on a square foot basis by law firms decreased 14% on average for new leases, and 6% on renewals in all U.S. cities. Relocations also increased because of attractive landlord concessions (tenant improvements and free rent), which peaked at an increase of 54% over 2020.  

Dallas continues to experience flight to quality, whereby firms create a more efficient space design, reduce occupancy costs and relocate to trophy buildings (new or under construction) in the most attractive areas including Uptown, the Ross Avenue corridor in the CBD, and the Arts District. Additionally, some submarkets are gaining traction to land satellite offices such as Preston Center and Legacy.  

With slowdown in speculative office development there is going to be a lag in new law firm spaces delivering whereas pre-pandemic there were speculative developments happening in Uptown and Downtown that were anchored by law firms. With construction cost and timelines, law firms are placing more of a focus on existing or under construction buildings.  

Recruitment and retention remains the number one focus for Dallas law firms. The war for talent for both attorneys and staff has never been fiercer on both a national and local level. Law firms, especially large firms, are increasingly recruiting and attracting attorneys from competitors, enticing them with increased compensation, flexibility to enhance work-life balance, and opportunities with larger platforms and promotions. AM100 firms continue seeing Dallas as tremendous expansion market, which is amplifying attorney recruitment efforts and retention challenges. 

To read more about these and other trends impacting law firms, check out our Bright Insight report

Insights in your Inbox
Subscribe to the latest local market research, insights & analysis from Cushman & Wakefield across the U.S.
Subscribe

RELATED INSIGHTS

062022bireportcard
Research • Legal

Bright Insight

Cushman & Wakefield’s Legal Sector Advisory Group has published its proprietary 2022 National Legal Sector Benchmark Survey – Bright Insight.
Sherry Cushman • 6/7/2022
the-law-firm-of-the-future-is-happening-now
Article • Office

DALLAS - Considerations for Law Firms

As COVID-19 continues, we are seeing tenants of all kinds examining their real estate costs. For law firms, there are a few things to take into consideration.
Ryan Hoopes • 9/15/2020
Dallas Five Fast Facts
Insights • Office

DALLAS Office Fast Facts

What You Need to Know in Today's Dallas Commercial Real Estate (CRE) Office Market.
Andrew Desai • 7/20/2022

Related Services

Legal Sector Advisory Group
Cushman & Wakefield’s global Legal Sector Advisory Group (“LSAG”) consists of more than 450 global advisors that specialize in strategizing, creating, and implementing real estate solutions that support the business and people of today’s legal sector.
Learn More

Ready to talk?

Our professionals are ready to provide further details on this and many other topics.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS