Law firms are hunting for more than 1m sq ft of London office space, eclipsing last year’s total take-up by over a quarter.
Big requirements include Reynolds Porter Chamberlain, which EG can reveal is looking for 70,000 sq ft in central London. The firm is approaching a 2027 lease expiry on its current offices at Tower Bridge House, E1, and has appointed RX London to lead the search.
Also on the hunt is City-based litigation and dispute resolution firm Pallas Partners. The boutique firm, currently based at 1 King William Street, EC4, is searching for 15,000 sq ft, according to a spokesperson. Other firms searching include Weil, Gotshal & Manges (120,000-150,000 sq ft in central London) and Watson Farley Williams (50,000-60,000 sq ft), with the latter weighing up options in Canary Wharf, the City and the South Bank.
Requirements carried over from last year include Mayer Brown (100,000-130,000 sq ft), and Morgan, Lewis & Bockius (70,000-100,000 sq ft), both of which are looking to set up shop in the City.
Data from Knight Frank, shared exclusively with EG, has tracked just over 1m sq ft of live requirements in the sector, with up to 230,000 sq ft under offer and an upper estimate of 207,000 sq ft in negotiation.
Law firms close to signing on the dotted line include Eversheds Sutherland, which had a requirement for 100,000-140,000 sq ft in the City core and is set to re-gear its existing lease at 1 Wood Street, EC2, EG understands.
Elsewhere, Fieldfisher has extended its lease for three floors at Riverbank House, EC4, until 2035.
Leasing activity slowed in 2023, with around 854,400 sq ft of take-up recorded, a near 45% drop on 2022. This was focused on prime office space, with new or refurbished offices representing around 80% of legal take-up last year. The slowdown echoed take-up across the wider London leasing market, as occupiers continued to navigate economic uncertainty.
Legal leasing in the capital was driven largely by US firms, which accounted for three-quarters of all sector space acquired last year. This trend shows little sign of ending, as they also dominate active demand now, representing 70% of the sector’s ongoing requirements.
Bumper deals of 2023 included a number of big US law firm relocations, such as Paul Weiss’ deal to take 81,433 sq ft at 20 Air Street, W1, Debevoise & Plimpton taking 67,607 sq ft at the Daily Mail’s former headquarters on Tudor Street, EC4, and Kirkland & Ellis’ deal to prelet 173,597 sq ft at 40 Leadenhall, EC3.
This week, Minneapolis-headquartered firm Faegre Drinker Biddle & Reath signed a 10-year deal to take around 14,534 sq ft on level 18 of Stanhope and Mitsubishi Estate’s 8 Bishopsgate, EC2.
Richard Proctor, head of UK occupier strategy and solutions and London tenant representation at Knight Frank, said: “Activity in the legal sector reinforces the fact that London’s occupational market is gaining significant momentum.
“Of the more than 1m sq ft of active requirements that we’re currently tracking, some will stay put, either in the short or medium term, due to the supply of the best office space dwindling.”
Image © City of London Corporation
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