**The Legal Sector’s Positive Influence on Office Leasing**
While the overall office real estate market shows signs of recovery, uncertainty still lingers—except when it comes to the legal sector. According to Cushman & Wakefield, the legal industry continues to lead other office-using sectors in both leasing activity and employment growth. This momentum is supported by a 13.6% increase in the number of U.S. lawyers since 2020 and a heightened demand for premium, flexible office space.
These insights come from Cushman & Wakefield’s recently released report, “Bright Insight 2025: National Legal Sector Benchmark Survey Results,” which outlines key trends within the industry.
**Legal Tenants Leading the Way**
Law firms are currently signing record levels of high-quality, long-term leases. While the previous decade was characterized by widespread efforts to reduce office footprints, today’s law firms are prioritizing talent recruitment and retention. The report notes that although the average size of lease renewals has decreased by less than 2% since early 2023, new leases offer opportunities to achieve greater spatial efficiency in premium buildings.
**Return to Office: A Strategic Priority**
In emphasizing collaboration and mentorship, law firms are encouraging more in-office presence. A reported 56% of surveyed firms expect attorneys to work on-site at least three days per week. Cushman & Wakefield analysts observed that attorneys spend 39% of their time working alone and only 28% collaborating in person. This highlights the need for offices that balance team interaction with individual focus.
**A Surge in Tech Adoption**
Technology implementation is gaining momentum in the legal sector. Half of the surveyed firms already use artificial intelligence, while one-third plan to adopt it in the near future. Tech spending is increasing, with firms allocating an average of 4.0% of their revenue toward technological advancements. Alongside AI, investments are also flowing into areas such as cybersecurity, knowledge management, communication tools, and remote work infrastructure.
**Looking Ahead: Growth and Expansion**
Cushman & Wakefield anticipates that law firms will maintain a positive outlook into 2025, forecasting growth in both revenue and headcount. Firms with more than 1,000 attorneys expect to boost attorney headcount by 3.3% in 2025, and staff headcount by 1.8%, reflecting an emphasis on efficiency and AI-driven productivity.
In terms of geographic expansion, over half of the law firms surveyed are considering extending their presence to U.S. secondary markets. While they are not planning to exit established gateway markets, these secondary locations offer affordable alternatives with robust talent pools and vibrant office market dynamics. They present a logical pathway for growth, whether through establishing new offices or expanding existing teams.
As the legal sector continues to adapt and innovate, it’s playing a vital role in reinvigorating the office leasing market—offering a glimpse of optimism in an otherwise cautious landscape.
