Revenue growth and demand at Texas-headquartered law firms trailed the rest of the legal industry in 2019, but the Lone Star State firms led the market in making rate increases stick, a new survey shows.

At first glance, the numbers seem to contrast with a national zeal for Texas growth, expressed by large firm leaders from other regions and playing out in office openings and group lateral moves. But as those out-of-state players seize on opportunities in this hot market, it may be taking away from the performance of locally founded firms.

The mixed results for Texas firms contrasts with a year of solid growth for the legal industry in 2019 that built on even stronger 2018 results, according to a 2019 report by Citi Private Bank's Law Firm Group. Nationally, revenue grew more than expenses, and demand growth accelerated as the year progressed, while rate increases were the strongest since 2008, the report said.