CHICAGO, July 1, 2025 – Law firms are bucking broader office sector trends by leasing premium space at record levels and signaling a long-term commitment to high-quality real estate, according to Cushman & Wakefield’s newly released 2025 Bright Insight report.
The legal sector leased 4.6 million square feet of office space in Q1 2025 alone—a 25% year-over-year increase and the strongest first quarter on record. That activity accounts for 8.4% of total leasing volume across the top 10 U.S. legal markets and stands in stark contrast to still-muted activity in many other office-using sectors.
“Law firms are not retreating from the office—they’re reimagining it,” said David Smith, Head of Americas Insights. “They’re investing in space that supports talent retention, client engagement, and the increasingly tech-enabled nature of legal work.”
Key Real Estate Takeaways from the Report:
- Leasing Momentum is Strong: Legal leasing volumes have exceeded 2019 levels by 35% over the past five quarters, even as broader office leasing remains below pre-pandemic norms.
- Downsizing Has Plateaued: The dramatic square footage reductions of the 2010s have slowed. Since 2023, lease sizes on renewals have declined by less than 2%, suggesting a new balance between efficiency and experience.
- Hybrid Work Is Stabilizing: 56% of firms expect attorneys to be in the office at least three days per week—far higher than in tech (26%) or finance (39%)—reinforcing the role of physical space in culture and mentorship.
- Offices Must Support Collaboration & Focus: Law firms indicate the primary purpose of the office includes fostering collaboration and relationships, meeting with clients, and maximizing individual productivity and focus. The office needs to be thoughtful and flexible in its design to accommodate all these demands in a hybrid work environment.
- High-Quality Office Space Is Paramount: Firms continue migrating into top-tier buildings that offer flexibility, hospitality-style amenities, and brand expression opportunities.
- Construction Pipeline Pressures Loom: With just 26 million square feet of new office space under construction—down from 136 million in early 2020—future supply constraints may limit options for firms prioritizing top-tier buildings.
“Despite more remote and hybrid work, the legal sector is committed to the office,” said Smith. “Its appetite for premium space, despite cost pressures and hybrid work, underscores the value firms place on the physical workplace as a competitive advantage.”
The report also highlights how investments in artificial intelligence and digital infrastructure are influencing law firm strategy. With tech budgets expected to grow from 4.0% to 5.5% of revenue, firms are adapting both staffing models and space designs to align with increasingly tech-driven operations.