Since 2019, law firms across the UK have acquired almost 7 million sq ft of office space. London’s legal sector has driven a significant rise in demand for prime office space, with the industry accounting for 20% of the London office market. Since Covid-19, this demand has only intensified as firms strive to attract and retain top talent with high-quality, amenity-rich workspaces that support hybrid and collaborative work models.
London has led the UK for law firms taking office space.
London’s ongoing global attraction
London’s status as a global legal powerhouse is a major factor, attracting firms eager to establish a foothold in one of the world’s premier financial and legal centres. The city’s prime office spaces offer strategic proximity to international clients and top financial institutions, fuelling its role as a central hub for legal sector growth. The focus on high-end, sustainable, and flexible office designs highlights London’s position as a leader in creating modern work environments, meeting the evolving needs of both clients and employees in a competitive, post-pandemic market.
US firms lead growth
Over the past two decades, according to ALM Intelligence London Market Analysis Report, the presence of US law firms in London has increased from approximately 65 to over 88 and headcount expanded from approximately 2,000 lawyers to nearly 7,000, strengthening London’s role as the largest global market for US lawyers and amplifying the demand for office space. This trend highlights the critical role that premium, strategically located office spaces play in the legal sector. As a result, the average rent for Grade A legal sector offices is now 12% higher than the city’s overall average, indicating a marked preference for quality environments that support hybrid work models.
2022 and 2023, several US and UK law firms secured prime office locations across London, reflecting record-breaking demand for Grade A space, which reached 1.5 million sq ft in 2022. Major law firms such as A&O Shearman, are taking new, premium-grade spaces to maintain competitiveness and appeal to talent. When A&O Shearman agreed a pre-let at 1-2 Broadgate, they described it as “a step-change in terms of energy consumption and better reflects the way we want the firm to work in the future.” This “flight to quality” trend is evident in the absence of Grade B office uptake among legal firms in the past two years, highlighting the industry’s dedication to providing premium workspaces that attract top-tier talent.
Future demand
While 2024 saw a slight slowdown in central London legal take-up, largely because larger firms had already met their space needs over the previous four years, there remains a substantial 1.2 million sq ft of ongoing requirements in the market at the start of 2025, illustrating continued strong levels of legal sector demand.
This focus on high-quality office space has now extended beyond London, with many of the UK’s top 50 law firms, and a growing number of US firms, establishing and upgrading offices in the Big Six regional cities. Approximately 60% of the UK’s top 50 law firms now have a presence outside London, highlighting the sector’s broader trend of regional expansion.
Cities like Manchester, now the UK’s second-largest legal hub, Birmingham, Leeds, Bristol, Glasgow, and Edinburgh, are emerging as strong contenders for legal excellence, housing global firms and providing premium office environments that meet the evolving expectations of the industry.
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