US law firm leasing surged 17% in the first half of 2026. The rise shows strong demand for office space across the legal industry.
Law firms leased nearly 12.2 million square feet during the period, according to Cushman & Wakefield data.
The increase marks a strong start to 2026. It also shows that many firms still value physical offices despite the rise of hybrid work.
Strong revenue and hiring needs are helping drive this trend. Meanwhile, artificial intelligence is changing how firms plan their offices and teams.
Key Takeaways
- US law firm leasing rose 17% year over year in the first half of 2026.
- Law firms leased nearly 12.2 million square feet during the period.
- Second-quarter leasing reached about 7.3 million square feet.
- Q2 leasing was 27% higher than Q2 2025.
- New York, Chicago, and Washington, D.C., remained major legal office markets.
- Simpson Thacher & Bartlett agreed to a 916,000-square-foot Manhattan lease.
- Strong revenue and hiring needs continue to support office demand.
- AI may change office use, but it has not removed the need for legal workplaces.
Law Firm Leasing Hits a Major Milestone
US law firm leasing reached a new quarterly high in the second quarter of 2026.
Firms leased about 7.3 million square feet during the quarter. That was 27% higher than in Q2 2025.
The result also beat the previous quarterly record. That record was set in the fourth quarter of 2024.
As a result, firms have already leased nearly two-thirds of the 18.8 million square feet leased during all of 2025.
First-half leasing reached about 12.2 million square feet. That compares with 10.4 million square feet in the first half of 2025.
The numbers show continued demand for law firm office space across major U.S. markets.
Major Legal Markets Drive Demand
New York, Chicago, and Washington, D.C., were among the strongest legal markets in the second quarter.
New York City alone accounted for about 30% of second-quarter legal leasing, according to Cushman & Wakefield.
Furthermore, law firms made up about 14% of total office leasing across 10 major legal markets.
Demand also reached smaller legal markets. Nine non-major markets recorded more than 100,000 square feet of legal leasing during the quarter.
That activity shows that law firm growth is not limited to the largest legal hubs.
Large Law Firm Leases Drive Demand
Large deals played a major role in the second-quarter leasing surge.
Cushman & Wakefield reported 21 legal-sector deals larger than 75,000 square feet. Fifteen of those deals closed during the quarter.
These deals helped lift total leasing. They also show that some large firms remain ready to make major office commitments.
Simpson Thacher Signs Major Manhattan Lease
Simpson Thacher & Bartlett was part of this trend.
The firm agreed to move into and expand within a 916,000-square-foot Manhattan office. Savills identified it as the largest legal-sector lease of the quarter.
The deal shows continued demand for large, modern offices in major legal markets.
For large firms, office space supports lawyers and business staff. It also provides space for clients, training, and team meetings.
Therefore, major office deals can signal plans for future firm growth.
Why Firms Are Expanding Offices
Several factors are supporting the rise in US law firm leasing.
First, many large law firms continue to report strong financial results. Higher rates and strong demand have helped drive revenue.
Second, firms continue to hire lawyers and other professionals. New office space can support larger teams and growing practice groups.
Finally, firms want better workplaces. Modern offices can offer improved meeting areas, technology, and shared spaces.
Firms Compete for High-Quality Offices
Law firms are placing more value on high-quality office space.
However, premium space remains limited in some major markets. As a result, firms may move quickly when attractive space becomes available.
Location also matters. Offices near courts, clients, financial centers, and other businesses can support growth.
Consequently, office decisions have become part of wider law firm growth plans.
Strong Revenue Fuels Expansion
The leasing surge comes as major U.S. law firms report strong financial results.
Large U.S. law firms recorded double-digit revenue gains during the first half of 2026. The results reflect continued demand for legal services.
Strong demand has helped support firm revenue. At the same time, firms continue to invest in lawyers, technology, and office space.
That combination could keep office demand strong through the rest of 2026.
AI Is Changing Law Firm Office Needs
Artificial intelligence is also becoming an important part of law firm planning.
AI can help lawyers work faster and automate some tasks. However, it has not removed the need for lawyers or physical offices.
David Smith, head of Americas Insights for Cushman & Wakefield’s Global Think Tank, said firms expect to keep adding lawyers and staff while using AI to improve efficiency.
Meanwhile, firms may need more technology and operations workers to support AI tools.
As a result, AI may change how firms use offices rather than eliminate the need for them.
Law Firm Leasing and Legal Jobs
The increase in law firm leasing could also affect the legal job market.
When firms expand their offices, they may be preparing for larger teams. They may also be growing key practice groups.
That growth can create opportunities for lateral attorneys and early-career lawyers.
Recruiters may also see more demand for candidates in growing practice areas.
The impact may extend beyond attorneys. Firms may also need legal operations workers, recruiters, technology specialists, finance staff, and administrative employees.
Therefore, office leasing can provide one useful sign of where firms expect future growth.
What the Leasing Surge Means
The first half of 2026 has been strong for the U.S. legal office market.
US law firm leasing reached nearly 12.2 million square feet. That was 17% higher than the same period last year.
Major firms also continued to sign large office deals. Meanwhile, many firms still use hybrid work models.
Even so, physical offices remain important. Firms use them for client meetings, teamwork, training, and firm culture.
Going forward, legal demand and hiring will shape office decisions. Revenue growth and AI adoption will also play a role.
For now, the leasing data points to continued confidence among many U.S. law firms. It also gives attorneys, recruiters, and law students another way to track legal industry growth.
Frequently Asked Questions
How much did US law firm leasing increase in 2026?
US law firm leasing increased
17% in the first half of 2026. Firms leased nearly 12.2 million square feet during the period.
How much office space did law firms lease in Q2 2026?
Law firms leased about
7.3 million square feet in the second quarter of 2026. That was 27% higher than Q2 2025.
Which cities have strong law firm office demand?
New York, Chicago, and Washington, D.C., were among the leading markets in the second quarter. New York City alone accounted for about 30% of legal leasing.
Why are US law firms leasing more office space?
Several factors are driving demand. These include firm growth, hiring, strong legal demand, and interest in high-quality offices.
Is AI reducing the need for law firm offices?
AI may change how firms use office space. However, firms continue to need physical workplaces for lawyers, staff, clients, and team activities.
Could increased office leasing lead to more legal jobs?
It could signal future hiring. However, leasing alone does not guarantee more jobs. Attorneys should also review firm growth, revenue, practice-area demand, and hiring activity.
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