North America

LAW FIRM SERVICES GROUP

Fall 2017

SPOTLIGHT
REPORT
Real Estate Trends in
the Legal Industry

In Colliers' annual Law Firm Services Group benchmarking study,

we look at the relative efficiencies and costs for the largest 20 firms
within select primary and secondary markets in North America. The
data reveals interesting trends that present opportunities for law
firms to consider.
 Attorneys still value Law firms with well In many industries, the SF per office worker
private offices, but thought-out real estate continues to decline.
technology is allowing strategies are more
Lawyer attorneys to work 24/7
and be more mobile.
likely to increase
revenues.
> While this trend also is true with law firms,
national firms in major markets
often buck the trend.

Talent remains the By 2018, 50% of the

largest cost for large workforce will be
law firms. Your office millenials and by 2025,
Partner space needs to help you 75% of the workforce
attract and retain talent. SF per (A) Attorney
will | (P) Partner
be millenials. 2,306-3,909
2,305-3,100 1,511-2,305 716-1,510 0-715
($) Gross Rent $65-$85 $43-$64 $22-$42 $0-$21
$0-$22
>

SF per (A) Attorney | (P) Partner 2,306-3,909

2,305-3,100 1,511-2,305 716-1,510 0-715
Primary ($) Gross Rent $65-$85 $43-$64 $22-$42 $0-$21
$0-$22
Law Firm Averages in Select Vancouver
P
North American
P
2,287
Markets 1,387
1,282
$53.70
$51.94 A
A 667 P
Primary 894 Primary
Markets 3,909
Vancouver $81.58
P A >
P 1,387
1,282 P 930
2,287 $51.94 $53.70 P 1,543 Many law firms embrace having more choice
A New York
A 667 P Milwaukee Toronto A $60.19 830
A $22.46
3,909
P in the variety of spaces they can work
Secondary
894 1,328 $81.58
P 712 and connect in.
$24.50 Hartford P A
2,492 A 930
P San Francisco 756 P 1,543 P
1,524 2,136 $48.22 P Parsippany
P 1,144
Secondary Markets
$33.78
A
953 $61.94
1,613 $36.07 New York
A $22.46
Secondary Milwaukee
PChicago A $30.30 A $60.19 830 A
Toronto
A 1,328 960 491
779 Denver A 712
P P $24.50 767 Philadelphia
Hartford
2,492 1,861 A
P P San Francisco 756 P P
1,524 2,654 $40.39 2,136 $48.22 P Parsippany 1,144
A $61.94 A P 1,613
$33.78 953Los Angeles 766 1,444A $36.07
Chicago $29.65 P $30.30 A
A A $46.25 960 2,502
A 491
779 983 P Denver
Dallas
Nashville A 767$70.07 Philadelphia
1,861 819 A
>

P P San Diego $40.39 920

2,654
2,060 A P Birmingham Atlanta P Strategic
1,444
$42.01Los Angeles 766 2,473
Large firms in major markets often operate A $46.25 P P$29.65 P
>> > Work that requires Integrate strategic functions
A 1,327Nashville A 2,502
983 890 $70.07
outside of maximum efficiency. $36.02
1,072 Dallas A
$24.63
A 819 A face-to-face interaction, into the fabric of key offices
$32.39 920
P San Diego 1,095 906 planning or collaboration
2,060 P Birmingham Atlanta
P 2,473 P
$42.01 P P P 1,415
A 2,240 1,3271,267 Tampa
890 Houston $36.02 $24.63
A $46.70
1,072 A A$26.46A $32.39A $43.66 Consider these 3 alternatives
1,011 1,095710 906 493
South Florida Tactical
P P
>

2,240 P Tampa 1,415 >> > Work that can be Off-shoring: Move functions
Houston 1,267
A $46.70 A $43.66 accomplished without face- to other countries
A$26.46
>
1,011 493
Near-sourcing is710
a common to-face interaction is more

> Major market attorneys have an

appetite for large private offices,
strategy to consider where
partners and attorneys are
South Florida process driven Near-shoring: Relocate
tactical functions to less
which combined with the need to expensive regional centers
separated from support staff,
house support staff on site can
who can be relocated to
Large firm Primary market Large number of Higher operating producelow efficiencies in less expensive real estate. Outsource: Outsource the
support functions* costs the priciest markets. Outsourcing is also on the rise. tactical functions
* i.e. Human Resources, Accounting, Marketing, IT, etc.
Summary Colliers International
Law Firm Services Group
The legal industry is being threatened from all sides and this
is causing firms to look at their workplace now more than We are a global team of enterprising and experienced
ever. Leverage models, recruitment/retention, brand strategy, professionalsincluding practicing attorneyswho partner with
knowledge/client transfer and commoditization are all business law firm clients to provide strategic expertise tailored to the
challenges that can be positively impacted by space. Reducing goals and culture that make each law firm unique. Our clients
a firms footprint is one way to deal with the expense side of depend on us for real estate solutions that enhance productivity
the business, but there are other ways to make real estate a and control costs, while minimizing capital expenditure and
revenue generating machine. Productivity is the precursor to managing future risk for the partnership.
profitability and all firms should be focused on finding ways
their real estate can positively impact productivity. The future state ofthe workplace depends on the alignment of
function and space. If your firm is interested in exploring the
Successful firms that consistently produce higher revenues: ways real estate decisions can drive savings to your bottom line
while providing better service to your clients, wed love to talk
Create a more collaborative work environment with you.
while providing their attorneys with better
technology so they can be more agile.
LAW FIRM SERVICES CONTACTS
Daniel Arends
Differentiate their brand. They are market Principal,
leaders that create meaningful gaps in the Office Advisory Group
rates they charge their clients, ultimately +1 312 612 5908
increasing the revenue they produce. daniel.arends@colliers.com

Colin Scarlett
Provide quality legal services through running Executive Vice President,
their firms and delivering services efficiently. Personal Real Estate Corporation
This allows them to price work competitively, +1 604 661 0879
manage collections to get better realization colin.scarlett@colliers.com
rates and provide a better match between
salaries and revenue contribution.
RESEARCH CONTACT
Stephen Newbold
National Director,
Office Research | USA
+1 202 534 3630
stephen.newbold@colliers.com

colliers.com/us/law

A study of the largest 20 law firms by square footage was completed by our Law Firm Services Group
members in a selection of primary and secondary markets in North America. The data was aggregated to
create market averages for variables including square footage, gross rent, lease expiration, number of attorneys
and number of partners.

Copyright 2017 Colliers International.

The information contained herein has been obtained from sources deemed reliable. While every reasonable
effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any
inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.