With companies nationwide downsizing their office space in the wake of the COVID pandemic, some local law firms have joined the trend, according to a small survey of Twin Cities firms conducted by real estate firm Newmark. Others have gone in the opposite direction to keep pace with growth in their practices.
The survey includes data from 20 of the top law firms with offices in Minnesota. The firms vary in size, with office spaces ranging from 15,000 to 207,000 square feet and employing from 15 to 202 lawyers.
Law firm leasing activity averaged 52,725 square feet in 2020 and 2021. The number significantly rose in 2022, with a total of 252,913 square feet leased. Year-to-date, law firms have leased 160,000 square feet, and it is projected that the total square footage will reach 192,000 square feet in 2024, based on announced deals.
According to Newmark, law firms have been downsizing their office footprints for years. The pandemic accelerated this trend, resulting in the average square foot per lawyer decreasing by 7.3% since 2014.
In the three most recent law firm office leases signed, the square feet per lawyer was 438, 500 and 682 square feet.
Among law firms that renewed or signed new leases from 2020-2023, 55% chose to contract, 36% chose to expand and 9% had no or a negligible change in their size, according to the survey.
COVID accelerated downsizing trend for law offices, leasing survey finds
