Law firms were a key force in leasing activity within the office property sector during the first quarter, according to a new report from Cushman & Wakefield (NYSE: CWK).
During the first three months of the year, law firms leased 4.6 million square feet of office space. This marked the second-strongest first quarter on record and it extended a four-year run of record leasing activity.
According to the report, 44% of legal sector leases signed in the first quarter represented expansions in square footage, while less than one-quarter reflected downsizing activity. Nearly all major law firms require regular in-office attendance, with 93% stated policies of at least three in-office days per week – this is much higher than the average office attendance requirements in the finance and technology industries.
Since 2025, gateway markets such as New York City, Washington, DC and San Francisco recorded the highest levels of legal leasing activity, while secondary markets including Atlanta, Houston and Dallas have also recorded office expansions for law firms.
The report also noted law firms leased 31% more office space over the past four quarters than they did in pre-pandemic 2019. Law firms are rapidly increasing investment in AI and technology platforms, which the report said would duel a future where legal work is both more technologically advanced and more office centric.
“Law firms are not treating AI and the office as competing priorities,” said David Smith, head of Americas Insights at Cushman & Wakefield. “The firms moving aggressively on AI are often the same firms continuing to invest in premium office environments, collaboration space and talent development. They increasingly view office real estate, technology and workforce strategy as interconnected competitive advantages.”
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