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

Los Angeles Law Firms Target Best-in-Class Buildings 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. 

In Los Angeles, firms are looking for best-in-class buildings to attract and retain talent. Firms are building space that have lots of opportunities for collaboration and are looking for projects that have on-site conference centers, gyms, and other on-site or walkable amenities. The war for talent for both attorneys and staff has never been fiercer on both a national and local level. 

For the most part, firms are leasing space in the downtown Los Angeles and Century City submarkets. A little more than 50% of the Am Law 100 firms have an office in both locations. Downtown is near the courts and all of the mass transit systems have a stop in downtown Los Angeles, so offices there serve a wide population. On the Westside, Century City is where most law firm partners live and where private equity, tech and entertainment companies are located so they want to be close by. 

Downtown LA has been very active with several law firms inking long-term deals including Orrick’s relocation and downsizing from 66,000 square feet (sf) to 26,000 sf; Quinn’s downsizing within their current location from 135,000 sf to 65,000 sf; Alston’s relocation and downsizing from 75,000 sf to 50,000 sf; and O’Melveny’s is downsizing within their building from 186,000 sf to 100,000 sf. 

Generally speaking, law firms are coming off 10-to 15-year leases. Between the shift to a hybrid work model and the fact that law firms are building space totally different today, law firms are deciding to sign long-term leases and build space that can retain and attract attorneys.  

Century City has had slightly less law firm activity simply due to when leases are rolling and this submarket is one-third the size of downtown Los Angeles. Notable deals include Sullivan & Cromwell’s three-year renewal at the same 52,000-sf footprint and Shook Hardy’s two-year renewal at the same 9,000-sf footprint. Additionally, Sidley recently exercised a ROFO for 3,600 sf and have about 46,000 sf and Paul Hastings’ exercised a ROFO for 8,900 sf and now have about 38,000 sf. Miller Barondess relocated and expanded from 18,000 sf to 30,000 sf and Willkie Farr, which is new to the market, leased 55,000 sf on a long-term basis. 

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. Amid the evolution, firms on a national level 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.

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
ATL-Bright-Insight_web-card
Article • Legal

Atlanta Lawyers Seek to Attract Talent, Bring People Back to the Office

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.
Sam Hollis Jr. • 8/3/2022

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