US Law Firm Leasing Sees Strongest First Half Since 2018: Report

Yet again, law firms have proven their standing as one of the main drivers of U.S. office leasing.

During the first half of this year, 5.9 million square feet of law firm leases exceeding 20,000 square feet were signed across the country, the highest first-half volume since 2018, according to a new report from Savills.

That came after U.S. law firms leased a total of 3.4 million square feet during the first quarter of 2025 and 2.5 million square feet during the second quarter, reflecting a quarterly leasing pace double the average from 2020 to 2023, the report found.

New York City led in legal leasing volume during the second quarter, representing 28.7 percent of all square footage and 19.2 percent of national transactions. Meanwhile, Washington, D.C., came in second with 14.2 percent of square footage and 13.5 percent of national deals.

“Law firms continue to be committed to the idea that office space and efforts to encourage their people to come into the office are important elements of the value they provide to their clients,” Thomas Fulcher, a vice chairman at Savills and chair of the firm’s legal tenant practice group, said in a statement to Commercial Observer. “This report reflects that trend, and we don’t see that slowing down.”

Renewals drove most of the deals completed during the first half of this year, as 58.8 percent of law firms renewed their existing leases, most either expanding or downsizing their spaces, according to Savills’ report.

Some of the largest law firm renewals signed in New York City during the first half of 2025 include Mayer Brown’s renewal and expansion for 330,662 square feet at Rockefeller Group’s 1221 Avenue of the Americas, and Aaronson Rappaport Feinstein & Deutsch’s deal to keep its 42,764 square feet at L&L Holding Company’s 600 Third Avenue.

But there were some high-profile relocations that stood out amid the renewals. In New York City, Goodwin Procter signed a new 20-year lease for 250,000 square feet at BXP’s 200 Fifth Avenue, and in Nashville, Tenn., Holland & Knight inked a deal for 141,447 square feet at Symphony Place.

As for trends in lease terms, most markets now “fall within a narrower range of term lengths, indicating a return to normalized leasing behavior,” the report said. Most firms now favor shorter, more flexible deal structures, while some are looking for longer terms for cost control.

The pipeline of deals isn’t set to slow down anytime soon, as 2025 is already on track to outpace 2024’s quarterly average of 2.5 million square feet and its full-year total of 10.2 million square feet of law firm leases signed.

Isabelle Durso can be reached at idurso@commercialobserver.com.