The resilience of London’s legal sector in the wake of Brexit despite the Covid-19 pandemic has seen strong revenue and increased headcount across the capital driving demand for office space. In fact, the legal sector accounted for over one million sq ft of Grade A office take-up in London in 2021, the strongest leasing activity of prime space for law firms on record. Along with boosting the city’s office occupier market, activity shows an unarguable commitment to London from international law firms, with many of them choosing the UK capital as their European headquarters. 

Grade A space represented 99 per cent of all new office leases signed by law firms in 2021, a weighting that suggests ‘best in class’ is considered fundamental by legal occupiers in terms of attracting and retaining talent. The desire for the best space is clearly highlighted in the legal sector’s dominance of pre-letting activity: it has accounted for 53 per cent of all pre-lets in the City in the last two years.

Deals include Linklaters committing to 307,195 sq ft of space at 20 Ropemaker Street EC2; Latham & Watkins taking 200,000 sq ft at 1 Leadenhall EC3; Baker McKenzie’s 152,690 sq ft at 280 Bishopsgate EC2; Covington & Burling taking 85,768 sq ft at 22 Bishopsgate EC2; Allen & Overy’s 267,000 sq ft at 1 Broadgate; and Traver Smith taking 158,000 sq ft at Stonecutter Court, 1 Stonecutter Street. Further activity in 2021 included Skadden and Leigh Day both agreeing terms on new offices at 22 Bishopsgate and the Panagram building in Clerkenwell respectively. 

Myriad environmental and social objectives coupled with rising competition to attract and keep top talent will see continued demand for prime office space from the profession. Between 2022 and 2026, there are over 5.3 million sq ft of lease events within the legal sector in the City of London, of which 1.8 million sq ft (34 per cent) have re-geared or committed to new office space. Therefore we are likely to continue to witness the sector acquiring more of the best space over the coming years.

Further information

Contact Will Wilson

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