Leasing activity among U.S. law firms peaked in 2023, marking an increase of over 50% compared to the pandemic-stricken years of 2020 and 2021, according to global real estate services firm Cushman & Wakefield. Additionally, the surge in new leases significantly outnumbered renewals, indicating a trend towards relocation among firms with expiring leases.
Their recent U.S. Legal Sector Leasing Report disclosed that the strong leasing activity was mainly driven by New York and Chicago, which became appealing markets for law firm leases in 2023. Meanwhile, Houston and Dallas saw significant declines in leasing activity, diverging from the relocation trend seen in other major markets.
Law firm leasing activity not only hit record levels in 2023 but also dominated the square-footage records, as evidenced by eight of the ten largest leases being signed in New York (Law.com). This shift reveals a trend among law firms towards expanding their office footprint in key markets, as they navigate the post-pandemic period.