Key Findings

• In 2024, legal sector leasing reached a record-breaking 10.2 million square feet (msf), a 31.4% year-over-year increase from 7.7 msf in 2023, and surpassing the previous peak of 8.4 msf in 2019 by 20.5%.
• In 2024, quarterly leasing volume has averaged 2.5 msf, a substantial rise from the 1.5 msf quarterly average recorded between 2020 and 2023.
• In 2024, 55.5% of law firms opted to stay in place, closely mirroring 2023 and marking a shift from the 2022 when more firms elected to relocate, potentially a result of the continued dearth of new development and high-quality options.
• The final quarter played a pivotal role in driving demand, with 3.8 msf leased—representing a substantial 37.2% of total annual activity and underscoring the legal sector’s continuous momentum.

Legal Sector Leasing Gains Momentum in 2024, Capturing a Larger Share of Office Activity

• In 2018 and 2019, legal sector leasing remained stable, while other industries, such as tech, experienced rapid growth and high demand for space. The percentage of activity from the legal sector averaged 5.1% during these two years.
• In 2020, many sectors paused leasing decisions to "wait and see" what effects the pandemic may have. Law firm activity slowed from pre-pandemic levels. Some firms signed extensions to push leasing decisions back, while others looked past the pandemic in the short term and were willing to make long-term decisions regardless of the pandemic. This brought activity up to 6.6% during a year of diminished overall demand for the office market.
• In 2021 and 2022, legal sector activity remained below pre-pandemic levels, yet leasing continued even as activity declined significantly across other industries. Meanwhile, tech leasing surged in 2021.
• In 2023, legal sector activity rebounded to pre-pandemic levels, while overall office demand lagged due to economic uncertainty and a slow return to the office. As a result, the legal sector accounted for a larger share of total office leasing activity, reaching 8.8%.
• In 2024, legal sector activity exceeded pre-pandemic demand, while overall office leasing remained 11.4% below 2019 levels. With leasing volume reaching its highest point since 2019, the legal sector accounted for 9.6% of total office leasing activity, setting a new benchmark and reaffirming its role as a key driver of office demand.