- Law firms leased 5.9M SF in H1 2025, the strongest first-half volume since 2018.
- Leasing activity averaged 3M SF per quarter in 2025, outpacing 2024’s quarterly average of 2.5M SF.
- Firms were equally likely to expand or downsize, with Goodwin Procter’s 244K SF New York lease leading Q2 deals.
A Record-Setting First Half
US law firms leased nearly 6M SF in the first half of 2025, including 2.5M SF in Q2 alone, reports GlobeSt. This marks the highest first-half leasing volume in eight years, according to Savills’ latest law firm activity report. The data highlights how the legal sector is reengaging with long-term office planning.
Trends In Relocation And Space Strategy
More firms are choosing to move to older or similar buildings, with 39% doing so in the first half of the year. That’s up from 35% during the same period last year. Additionally, 34% of all renewals and relocations involved expansions. This marks a slight increase year-over-year.
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Renewals Dominate
Nearly 60% of leasing decisions in H1 were renewals. This trend is being driven by a limited supply of new, high-end office space. Rising tenant improvement costs are also a factor. Together, these conditions make renewing existing leases the more cost-effective choice in many markets.
New York Leads The Pack
The largest lease of Q2 was Goodwin Procter’s 244K SF move to 200 Fifth Avenue in Manhattan. That single deal helped New York account for 28.7% of total legal sector leasing volume in the quarter. Washington, DC followed, with 14.2%.
Expansion And Downsizing Nearly Balanced
Firms were evenly split on whether to expand or reduce their space: 34.1% chose to expand, 34.1% downsized, and 31.8% held steady. Downsizing firms reduced their space by an average of 23K SF. Expanding firms added about 20,500 SF on average. These changes resulted in a modest net loss of 50,794 SF.
Lease Terms Stabilize
Post-pandemic, law firm lease lengths have begun to converge. Some firms are opting for longer lease terms to secure favorable pricing or prime office space. Others are taking advantage of softer market conditions to negotiate more flexible agreements in tenant-friendly markets.
Why It Matters
The data suggests law firms are becoming more confident in long-term office use, even as hybrid work continues. With average leasing volumes exceeding 2024 levels—already a high point—2025 could mark a turning point in how the legal industry approaches real estate.
What’s Next
As high-profile firms continue to make significant real estate moves, the legal sector may be a bellwether for broader office leasing trends, particularly in major urban markets. Expect a continued emphasis on flexibility, quality, and strategic growth in legal workplace strategies.
