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WHAT WE’RE WATCHING
LEAVING SPACE – Offices are so early 2020. A new report by Savills U.S. shows law firm leasing activity has slowed by nearly a third in the first six months of this year when compared to 2019. And, as Dylan Jackson reports, many of the major transactions that did take place in 2020 were pre-pandemic. That’s not shocking, of course. As Chris Wilson, of hybrid remote law firm Taylor English, told us on the most recent episode of our Legal Speak podcast, “Law firms simply do not need the physical space they currently occupy.” Still, the Savills report notes that it’s a buyer’s (or lessee’s) market for those firms that might still be on the hunt for offices right now. “If law firms remain one of the more resilient sectors through the coming quarters,” the report reads, “those firms that can make a real estate commitment in this downturn period are in an excellent position to capitalize on softer markets and more favorable terms.” Meanwhile, for those firms keen on downsizing or even ditching their current space altogether, there are other considerations to make, like whether to up attorneys’ pay with the savings and whether to expand their geographic reach with remote lateral hires.
