- Cushman & Wakefield reported 7.3M SF of law firm leasing in Q2. Volume rose 27% year over year and 23% above the prior record.
- In H1, 43% of transactions expanded footprints, the largest share since 2019. Downsizing fell to 20%.
- New York City led the quarter with 2.2M SF. The 10 largest US legal markets captured 69% of national volume.
Cushman & Wakefield data, reported by Globe St, showed that law firm office leasing reached a quarterly record of 7.3M SF in Q2. Volume rose 27% year over year and beat the previous record by 23%. The prior high was set in Q4 2024.
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Law Firm Office Leasing Sets a Record
First-half legal leasing totaled 12.2M SF, up 17% from 10.4M SF during the same period in 2025, according to Cushman & Wakefield. By midyear, firms had completed close to two-thirds of the 18.8M SF annual record set in 2025. The record reflected deal size, not a higher number of leases. Fifteen of the 21 first-half leases above 75K SF closed during Q2. Five of the 10 largest legal leases over the prior four quarters were also signed in Q2.
Expansion Replaces Downsizing
Law firms are taking more space more often. In H1, 43% of transactions involved footprint expansions, the largest proportion since 2019. Downsizing represented 20%. Among new leases, about 67% involved expansions and 32% involved reductions. Renewals were steadier. Cushman & Wakefield found 69% of renewing firms held their footprints roughly steady. Another 22% expanded, while 10% reduced space. Nine of the 10 largest first-half legal transactions involved AmLaw 100 firms, including six ranked in the top 25.
Top Legal Markets Dominate Leasing
The 10 largest US legal markets produced 69% of Q2 volume. Law firms represented 14% of total office leasing there. New York City led with 2.2M SF, equal to 30% of national quarterly legal leasing. Broader leasing momentum has also strengthened across Manhattan’s office market.
Chicago recorded more than 890K SF in Q2 and nearly 1.5M SF in the first half. Its six-month total had already exceeded its entire 2025 volume by 91%. New York City, Chicago and Washington, DC produced nine of Q2’s 10 biggest legal leases.
Why It Matters
Legal tenants are supplying a meaningful share of office demand as the broader market recovers. The record quarter combined large transactions with a stronger expansion bias, rather than simply more leasing events. Activity also extended beyond the three largest legal hubs. Nine additional markets topped 100K SF during Q2. Minneapolis led that group with 274K SF. Salt Lake City recorded 145K SF, and Pittsburgh recorded 127K SF. The breadth gives the legal sector a role in office demand across several US markets.
What’s Next
Cushman & Wakefield expects legal leasing velocity to ease somewhat in the second half. Even so, it still sees law firms on track for another strong year. Their leasing should continue contributing to the recovery in US office demand. The sector completed 12.2M SF in the first half, already close to two-thirds of 2025’s record annual total.
