The Legal Tenant analyzed law firm transactions over 20,000 square feet (sf) across key U.S. markets and found that leasing activity for the first half of 2023 is the strongest on record since the start of the pandemic with 3.3 million square feet (msf). Activity is up 22.3% in the first six months of the year compared to the same period in 2022. The 1.6 msf leased in Q2 is above the 1.4 msf quarterly average seen since the start of the pandemic.
Law firm leasing volume is beginning to normalize as law firms appear to be committed to the long-term need for office space and are increasingly confident with moving forward with leasing decisions. Demand has teetered among other industry sectors in recent quarters with decision makers hesitant to take leasing action amid economic uncertainty. Overall leasing volume for all sectors picked up in 2022 but has since become sluggish as of mid-year 2023.
The second quarter saw the execution of five significant leases over 100,000 square feet (sf). Three of those transactions occurred in New York and made up 40.3% of the quarter’s legal activity by square footage. Other markets that saw multiple deals over 20,000 sf closed in Q2 include Washington, D.C. and Los Angeles. In 2023, the number of new-to-market leases by major law firms in cities like Salt Lake City and Miami have begun to slow. Most activity is occurring where firms already have a presence.
