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Law firm leasing stabilizes as new markets beckon and pandemic fades

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Reuters – U.S. law firm leasing activity is picking up steady momentum after a pandemic-era dip, according to Savills.

The third quarter of 2022 capped several quarters of stable lease volumes since the third quarter of 2021, commercial broker Savills said in a new report. The law firm leased a total of 1.7 million square feet in Q3 2022. This is slightly above his four-year quarterly average of 1.6 million square feet.

The quarter was the second largest quarterly total since the start of the pandemic, according to Savills, which tracks law firm leases of more than 20,000 square feet in major U.S. markets.

Relatively stable quarters from Q3 2021 onwards, with a clear sustained recovery seen as law firms increasingly encourage office attendance and firm leaders to talk more about long-term leasing The authors of the report said in an interview that this is because they feel more comfortable making decisions.

According to Savills, this year’s law firm leases saw a mix of non-traditional core market activity, with firms expanding into new cities such as Miami, Tampa, Salt Lake City, Austin, Houston and Dallas. It is said to be the cause.

But firm leaders haven’t given up on major markets. New York and Los Angeles lead the list of top law firm leasing markets by square footage in 2022.

The largest lease tracked by Savills in the third quarter was London-based Freshfields Bruckhaus Deringer. signed Leases approximately 180,000 square feet for more space in New York. The office moved from the current office, follow the trend Percentage of companies choosing to transfer rather than renew leases.

Relocation accounted for 54.5% of square footage of lease transactions in the third quarter, and 63% in the first and second quarters combined, according to Savills.

Devon Munoz, head of Savills’ research platform initiative, said companies are looking for newer spaces with higher quality.

read more:

Law firms choose to move offices as lawyers return to face-to-face practice

Law firm leasing plummets amid industry’s revamped office plans

Our criteria: Thomson Reuters Trust Principles.

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Sara Merken reports on the business of law, including key players in privacy and data security, and the legal innovation and legal services industry. You can contact her at [email protected]

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