London proves a hotspot for legal expansion
As most legal practices globally choose to maintain the size of their office space, London stands out as a hotspot for expansion.
Some 40% of legal firms across the EMEA region expanded their office space during the first half of the year, according to Savills, with the UK capital registering the third-highest legal transaction volume, behind Paris and Brussels.
US firms drove much of the activity in London as they sought to increase their share of the city’s legal market. The knock-on effect was that British firms sought to expand elsewhere and secondary cities, such as Manchester, Birmingham and Glasgow, benefitted as a result.
As most legal practices globally choose to maintain the size of their office space, London stands out as a hotspot for expansion.
Some 40% of legal firms across the EMEA region expanded their office space during the first half of the year, according to Savills, with the UK capital registering the third-highest legal transaction volume, behind Paris and Brussels.
US firms drove much of the activity in London as they sought to increase their share of the city’s legal market. The knock-on effect was that British firms sought to expand elsewhere and secondary cities, such as Manchester, Birmingham and Glasgow, benefitted as a result.
There, the report found, law firms face less competition for talent from high-paying US firms and can offer salaries which are 47% lower than in London on average.
New York accounted for a third of all leasing transactions globally as US cities dominated global legal take-up with almost 70% of total transaction volume. This reflects the strength of the US legal sector, but also the tendency of US legal offices to have lower occupancy density and bigger offices, according to Savills.
Sarah Brooks, associate director in the Savills World Research team, said: “Global law firms are readjusting international expansion strategies, while domestic firms navigate various challenges and opportunities in different markets. What unites all is the prioritisation of talent in real estate decisions, balanced against the need to optimise the amount they spend on property.”
The agency’s Spotlight on the Legal Sector report also found that new working patterns have changed the layouts occupiers are looking for.
Tenants increasingly seek flexible, multi-purpose shared spaces to facilitate greater collaboration and team meetings. Even acoustic design gained more attention, as firms seek to reduce distractions and increase productivity.
Quality, location and sustainability were all among most important factors for shaping decisions, as well as access to amenities and public transport.
Rick Schuham, chief executive of global occupier services at Savills, said: “These requirements are resulting in persistent demand for premium space that provides vibrant employee experiences and positive environmental impact. This is true for all firms, but particularly pronounced among top-tier global practices that are investing heavily in best-in-class space around the world.”
City of London Photo © Bav Media/Shutterstock
