Q2 2026 marked an extraordinary quarter for law firm leasing, as transaction volume surged beyond pre-pandemic highs. Law firms remain highly active in the market, with several sizeable deals in the pipeline positioning the sector for continued momentum through the second half of the year.
Scarcity is increasingly shaping deal activity. With top-tier, large-block space in key central business districts (CBDs) increasingly limited amid a record-low development pipeline, availability is influencing both how and when firms transact. Supply constraints in Manhattan are forcing firms to expand into neighboring premier buildings, with attorneys—not just back-office staff—working across multiple locations.
Highlights from the report:
- The first half of 2026 produced 6.2 million square feet (msf) of law firm leasing activity among transactions of 20,000 square feet (sf) or more, with 4.3 msf recorded in Q2 alone.
- The legal sector remains one of the leading industries driving the U.S. office market recovery, accounting for 9.9% of leasing demand in 2026.
- Only 18.2% of law firms that signed a relocation or renewal in H1 2026 downsized their space, a 1,360-basis-point decrease when compared to the activity in H1 2025 (31.8%).
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