Big Law Firms Aren't Downsizing Their Office Space in New York

Despite trends showing that many firms in certain areas of the U.S. are reducing their office space, seven out of 10 of Am Law 200 firm relocations in New York since the beginning of 2023 were for similar or more space, according to new data from commercial real estate firm Cresa. This means that only 30% of those moves were for less space. 

Among the seven firms that moved to similar space or upsized were King & Spalding; Paul, Weiss, Rifkind, Wharton & Garrison; Wilson, Sonsini, Goodrich & Rosati; Susman Godfrey; Kilpatrick Townsend & Stockton; Greenspoon Marder; and Holland & Knight, said Gregg Cohen, the principal of the New York City office of Cresa. 

From the start of 2023 to May 2024, 23 Am Law 200 law firms signed leases totaling 2.83 million square feet in New York City, reported Cohen. 

Law firm leasing was the highest that it was in a decade in 2023, with a slight slowdown in the first quarter of 2024 and trends ticking upward in the second quarter, according to Cushman & Wakefield. Leasing activity in June of this year totaled 1.1 million square feet, brining total 2024 law firm leasing activity to 11.1 million square feet, according to Cushman & Wakefield. 

Data from Cresa also shows that 50% of those relocations were to buildings that have recently made or are making renovations of $100 million or more. In other words, firms are prioritizing Class A spaces in newly renovated buildings. 

Read more in the New York Law Journal or read Cresa's Am Law Firm Report.