- Law firm leasing reached a record 18.8M SF in 2025, up 3% from 2024.
- Renewals outpaced new leases in Q4, reflecting supply constraints for quality space.
- Expansions made up 38% of activity, the highest since 2020, with downsizing at a low 23%.
- Major markets like NYC and Boston saw most large transactions and ongoing concentration from top firms.
Leasing Momentum in Legal Sector
The US legal sector capped 2025 with record-level office leasing, according to Cushman & Wakefield. Fourth-quarter transactions totaled 4.3M SF, a 9% increase quarter-over-quarter. For the full year, office leasing volume reached 18.8M SF—marking the highest level on record and a 3% gain over 2024, reports Globe St.
Renewal Activity Surges
For the first time since Q2 2024, law firm leasing renewals overtook new leases in Q4, due largely to limited quality space. Renewals accounted for more than half of deals, with most involving minimal change in office footprint. By contrast, 62% of new leases drove expansions; only 17% of renewals did the same. The full-year share for new deals stood at 54%. This shift reflects a broader rise in lease renewals across major office markets. Tenants are choosing stability and locking in quality space as new supply remains limited.
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Growth Patterns and Market Focus
Expansion activity was notable throughout 2025—38% of law firm leases involved larger footprints, the highest since 2020. Downsizing dropped to 23%. Deal volume was especially strong among medium (25–75 KSF) and large (over 75 KSF) leases, exceeding pre-pandemic levels. Most major legal markets, including NYC, Boston, Atlanta, and San Francisco, drove activity. The top 10 markets saw 67% of Q4 leasing, with AmLaw 25 firms expanding most in Washington, D.C. since 2019.
Outlook Stays Positive
Cushman & Wakefield projects that law firm leasing will remain robust in 2026. As new construction remains minimal, renewals are expected to stay elevated, while the ongoing demand for high-quality space supports continued expansion, particularly in established legal hubs.
