An office leasing surge is
reshaping the U.S. commercial real-estate landscape as
law firms rapidly expand their footprint. A new industry report shows that legal tenants more than doubled their share of total office leasing compared with pre-pandemic levels. This shift marks one of the strongest rebounds in a market where many industries still hesitate to commit to new space. Although broader leasing activity remains uneven, the legal sector’s strong demand for high-quality offices continues to stabilize several major markets.
Before the pandemic, law firms held about 5% of nationwide office leasing. By the third quarter of 2025, their share reached roughly 10.5%. This jump highlights the legal industry’s decisive return to physical office use, especially when compared with tech, finance, and other sectors. The rise also reflects changes in attorney work culture and firm profitability, both of which now push the profession toward more consistent in-person collaboration.
Why the Office Leasing Surge Is Centered on Law Firms
Return-to-Office Policies Are Driving the Office Leasing Surge
A
major factor behind the office leasing surge is the shift in workplace expectations. Many large law firms now require lawyers to be in the office at least four days each week. Partners have argued that training, supervision, and collaboration suffer when teams operate remotely. As a result, firms have recommitted to substantial, high-quality spaces that support teamwork and client service.
Even
associate-level evaluations have increasingly been tied to in-office participation. Because of this cultural shift, firms are securing office footprints that match their long-term operational needs. In contrast, other industries continue to debate hybrid arrangements, which has slowed their leasing activity.
Firm Profitability Supports More Leasing
Another driver of the office leasing surge is improved financial performance. Law-firm profitability has grown steadily since 2022 as litigation, corporate transactions, and regulatory work all expanded. When profits rise, real-estate costs represent a smaller burden, allowing firms to pursue premium locations or consolidate multiple offices into more efficient spaces.
Firms also see upgraded offices as a recruitment tool. In a competitive market for legal talent, quality workspaces signal stability and prestige. This incentive has only strengthened the trend toward expanding or renovating physical offices.
How the Office Leasing Surge Is Translating Into Market Activity
Leasing Volume Is Outpacing Historical Averages
Between January and September 2025, law firms leased more than 8.3 million square feet of office space. This total is higher than the six-year average for the sector and highlights the sustained strength of legal-industry demand. New York, Washington, D.C., Chicago, and Los Angeles have seen some of the largest transactions.
In about 37% of completed leases, the firms expanded their existing space. Another third involved downsizing, but even these smaller footprints often included upgraded layouts with more efficient designs. The remaining transactions were renewals, many with improved terms that reflect the current tenant-friendly market.
Large-Block Leasing Remains Strong
Law firms continue to be dominant players in the large-block category, defined as more than 20,000 square feet. This is significant because large blocks are among the most challenging spaces to fill in many cities. As demand from other corporate sectors declines, law-firm activity provides essential support to vacancy-stricken downtown markets.
Furthermore, firms are increasingly prioritizing flexible configurations, collaborative zones, and client-facing floors with modern amenities. Landlords have responded by offering competitive build-out packages and long-term concessions.
Broader Implications of the Office Leasing Surge
The office leasing surge led by law firms carries important implications for the national commercial-real-estate market:
- Stabilization of Urban Cores: Many downtown districts depend on professional-services tenants. The return of law firms has helped maintain foot traffic and local business activity.
- Confidence Boost for Landlords: A reliable tenant class can help reduce the volatility that has defined post-pandemic leasing cycles.
- Shift in Market Power: While tenants still hold an advantage, landlords with high-quality buildings are experiencing renewed interest.
- Long-Term Adaptation: The legal industry’s emphasis on in-person collaboration may influence other sectors to rethink their hybrid models.
Still, this growth is concentrated in a single category. If
law-firm strategies shift again, markets that rely heavily on them could face renewed instability.
The Future of the Office Leasing Surge
The outlook for the office leasing surge remains positive heading into 2026. Continued demand for litigation, regulatory guidance, and corporate restructuring means many firms expect stable revenue. As hiring grows, spatial needs may also rise. Moreover, because many leases signed this year extend for ten years or more, law-firm commitment to physical space will likely remain strong.
For now, the
legal industry stands out as one of the few sectors driving measurable growth in the U.S. office market. As other industries continue to navigate hybrid work, law firms are helping anchor the long-term health of commercial real estate in major metropolitan areas.
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U.S. Office Leasing Surge Led by Law Firms first appeared on
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