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Features
Law firms are navigating a paradigm shift in how they approach office space. With the rise of flexible workplaces, firms are finding that when their attorneys do come into the office, the main goal is to connect and collaborate with peers — and this shift has transformed how law firms address their real estate needs.
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Overall this year, law firms have been more likely to leave their current spaces and relocate, but they continue opting for smaller spaces.
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As Big Law firms push a return to the office, law firms continue downsizing their physical footprints, in line with a trend of fitting lawyers and staff into less space.
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Many firms are shifting to a hybrid work model, where lawyers and staff will divide their time between in-office and outside-the-office work, making management and leadership tasks more challenging.
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Seeing opportunities for reduced costs and broader hiring pool, law firm marketing chiefs are among the most vocal proponents of shifting firm operations to a virtual setting as firms bring their personnel back to the office.
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The success of the decentralized law firm depends in some part on how well firms can shift "hoteling" from the negative connotation of "losing my desk" to the positive connotation of "having a hotel-like experience" as is the case in the Big 4.
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Due to COVID-19's impact, the commercial office market should fundamentally shift in favor of tenants for the next several years. Law firm tenants should find an environment characterized by friendly concessions, options across asset classes and price ranges, and limited competition for space.
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When the pandemic sent everyone home in March 2020, it was a seismic shift in work, but one that had a clear reasoning behind it, and, oddly, was remarkably uniform in execution for all involved. The return to the office is much more complicated, and it isn't just about logistics.
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Adaption was a critical skill for many commercial real estate firms throughout the pandemic. Companies had to hustle to get the supplies to protect their employees and residents. They're not only thinking about what can protect their occupants from COVID, but what high-tech investments can make their buildings healthier in the future.
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Law firms are waiting to see how new trends like working remotely play out for office space post-pandemic, but that wait-and-see approach has created a tenant's market with opportunities for proactive firms in the short term.