**The Legal Sector’s Positive Influence on Office Leasing**
As the office real estate market begins to show signs of recovery, uncertainty and fragmentation still characterize much of the sector—except when it comes to the legal industry. According to Cushman & Wakefield, “The legal sector continues to outpace other office-using industries in both leasing activity and employment growth,” powered by a 13.6% increase in the number of U.S. lawyers since 2020 and a strong demand for premium, flexible office space.
These insights were highlighted in Cushman & Wakefield’s recent report, “Bright Insight 2025: National Legal Sector Benchmark Survey Results.”
**Legal Tenants Lead the Way in Office Leasing**
Law firms are now signing record numbers of long-term, high-quality leases. Unlike the trend in the 2010s, when downsizing was a priority, today’s focus has shifted toward attracting and retaining top talent. While average lease renewals have decreased by less than 2% since early 2023, new leases are providing opportunities for greater efficiency in higher-quality buildings.
**Strong Emphasis on In-Office Presence**
Despite broader market trends toward remote work, law firms maintain a high value on in-office collaboration. The survey found that 56% of law firms require attorneys to be on-site at least three days a week. Still, a balance is being sought: attorneys spend 39% of their time working alone and 28% collaborating in person. This underscores the importance of office environments that support both focused solo work and interpersonal engagement.
**Technology Adoption on the Rise**
The legal sector is rapidly embracing technology, particularly artificial intelligence. Half of the surveyed firms reported that they are currently using AI, while one-third plan to implement it in the near future. Legal firms are now allocating around 4.0% of their revenue to technology investments. Beyond AI, areas of tech focus include cybersecurity, knowledge management, communication infrastructure, and enhanced remote work capabilities.
**2025 Outlook: Growth and Expansion**
Cushman & Wakefield notes that law firms are optimistic about both revenue and headcount growth in 2025. Large firms (with over 1,000 attorneys) expect to increase their attorney headcount by 3.3%, while staff growth is projected at 1.8%, reflecting a strategic drive for greater efficiency through technology and AI.
An additional trend is emerging: expansion into U.S. secondary markets. While law firms remain committed to major gateway cities, more than half are considering growth in smaller, more affordable regions. These markets offer cost-effective real estate solutions and access to deep talent pools, making them attractive for expansion.
In summary, the legal industry continues to drive positive momentum in the office leasing market, fueled by growth, innovation, and a strategic approach to talent and technology.
