North American Law Firm Advisory Group Spotlight Report | 2023
2023 is set to be a year of exploration for U.S. and Canadian law firms as they assess return-to-the-office work strategies and contend with an economic outlook that suggests a mild recession may occur by Q3 2023. Despite some indications of stabilization, there is still a great deal of speculation and debate surrounding what the future holds, particularly given the slow return to office. As the office sector grapples with a series of challenges, significant structural shifts may be on the horizon in the years to come.
Leading Law Market Trends
- Focus on Acquisitions and Cost Reduction Strategies on the Rise
- Rents Hold Firm Overall
- Vacancy Is Rising in Most Markets
- Concessions Remain Generous
2023 Law Firm Survey: Key Takeaways
Long Term Leases Remain Popular
Although shorter lease terms are becoming more prevalent in the broader office market, law firms are still willing to commit to lease terms of 10 years or longer. In fact, 83% of law firms were willing to commit to longer-term leases.
Short-term Renewals to Continue
To maintain occupancy and income streams, landlords have agreed to short-term renewals while firms evaluate their post-COVID real estate strategies and space requirements. Nonetheless, the trend is diminishing, as only 45% of our surveyed base anticipate this trend to persist over the next 12 to 24 months, compared to 63% in 2021.
Footprints are Shrinking
65% of law firms are expected to reduce their space needs, both when renewing in place or relocating; this is down ten basis points from last year.
Lawyers are Returning to the Office
While Kastle Systems’ survey reports that as of March 2023, the overall office occupancy rate is 48%, the occupancy rate for law firms is significantly higher at 61.9%. Presently, 40% of law firms use between 26% to 50% of their space, while another 50% have occupancy rates of 51% to 75%. The latter group’s share is projected to increase to 80% by the end of 2023.
Remote Working is Here to Stay
It is predicted that only 20% of law firm professional staff will return to working in the office five days per week post-pandemic. The remaining 80% of law firms are expected to adopt some remote work, most commonly two to three days per week.
Single-sized Offices and Demisable Space Dominate Shifts in Space Planning
Law firms are still adjusting their space utilization. However, the trend towards single-size offices is ongoing, with over 80% of law firms either implementing it or expected to do so. Additionally, it is anticipated that nearly 75% of law firms will design space that can be more easily divided, providing greater flexibility if they need to sublease in the future.
Click here to download the full report as a PDF.
The post Trends and Transformations in North American Law Firms appeared first on Coy Davidson – The Tenant Advisor.
Source:
https://coydavidson.com/trends-and-transformations-in-north-american-law-firms/
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.
Anyone can
join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist
Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).