Law firms across the country have watched their caseloads explode under a triple whammy of increased artificial intelligence usage, rising regulatory uncertainty and a more litigious business climate.

These new business challenges have supercharged law practices’ growth. Flush with cash, they have been gobbling up office space at a pace few other industries can match, growing their footprints after years of shrinkage.

“The folks who signed a lease in 2019, 10-year leases, they’re coming up in a few years,” said SmithGroup senior workplace strategist Madeline Dunsmore, who focuses on legal clients. “These are big firms with big budgets, and suddenly, in this market, those budgets go pretty far.” 

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Compared to the pre-pandemic average, legal leasing activity was up 46% in the year trailing the first quarter of 2026, while tech leasing in the same period was down 8% from its pre-pandemic average, according to CBRE.

The legal industry signed 4.6M SF leases in the first three months of 2026, part of a string of four years of record leasing activity, according to Cushman & Wakefield.

The trend represents a reversal from a decade ago, when the average law firm was giving back 25% of its office space when signing a new lease.

Firms are signing for larger blocks, renewing early and planting flags in fast‑growing markets as they compete for attorneys with specialized AI and compliance expertise. With legal hours rising and AI‑related legislation proliferating across the country, the sector’s office growth now reflects a broader shift.

“The legal profession is recession-proof, and it’s been consistently more office-centric than other industries,” Cushman & Wakefield Head of Insights for the Americas David Smith said. “I think some firms are opportunistic.”

The average firm’s profit growth last year was 13%, according to a joint state of the industry report by Georgetown Law and the Thomson Reuters Institute. 

The report says the surge in demand lifting profits is due in large part to chaos, including trade wars, regulatory upheaval and geopolitical tensions that “require constant legal navigation.” 

These demand drivers led to a 3.9% year-over-year jump in the total hours worked by lawyers last year, one of the most rapid expansions the report has ever tallied. 

Legal leasing continues to grow in top-tier markets. In May, Simpson Thacher & Bartlett finalized a 916K SF lease at Extell Development’s upcoming New York tower at 570 Fifth Ave., Manhattan’s largest office lease in six years. 

Firms like Kirkland & Ellis and Goodwin Procter expanded late last year as part of an industry “space race.” 

Legal clients have accounted for 17% of Manhattan leasing volume this year, up from 11% in all of 2025, according to Savills.

But the industry’s growth is also driving more activity in regional markets with growing populations, business expansion or evolving office dynamics. In Miami, the legal industry now makes up 20% of office leasing, versus 10% pre-pandemic. 

Nashville, Charlotte and Charleston, South Carolina, have all seen similar jumps, and Austin and Dallas have seen booms in new legal spaces due to firms opening satellite offices, Smith said.

“There are countless examples of people just doubling down and renewing with similar amounts of space or slightly more than they had at their large offices,” Smith said.

The number of job postings among law firms for lawyers with AI skills and experience has jumped seven times since generative AI became more prevalent in 2022, according to Cushman & Wakefield.

“There has also been an increase in AI-related bills introduced into current legislative sessions across more than half of states,” Smith said. “This unprecedented legislative activity is a driving force for top law firms to have and grow their AI practice groups.”

But it remains to be seen if the chaos that has driven increased revenues proves to be a sustainable business strategy. The Georgetown-Reuters report hints at substantial financial pressures — including growth in spending on AI tools but an inability to charge premium AI-level fees — and the potential for a boom-and-bust cycle coming to the industry.

Firms are racing to load up on tech and talent, and workforce costs are up 8.2% compared to 2024, according to the Georgetown-Reuters report. 

“Certain law firms, even though they’re becoming more efficient from a utilization-of-space perspective, are actually growing because they’re acquiring attorneys and end up expanding their offices as a result,” said Ryan Lopez, vice president of leasing at Carr Properties.

The amount of office space needed per attorney is down from 925 SF before the pandemic to 746 SF today, but other needs are filling the gaps in law firms’ requirements.

Legal firms want to expand with more collaboration areas and more war room space for mock trials and strategy sessions, and they want high-end amenity space as a talent magnet.

Hospitality-driven design, gyms, pools and collaboration spaces are in, taking up to one-fifth of new offices, Smith said. Other in-demand amenities include parking, especially for partners, as well as conference and meeting rooms sizable enough for events and dinners.

“Rather than just cutting costs, firms are investing in placemaking, shared spaces that support culture and client interaction,” CBRE Managing Director of Americas Consulting Emily Botello said.

They are also investing in proprietary software and AI systems that need staff to oversee them, scaling up space needs where the mid-2010s removal of physical law libraries shrunk office footprints.

“The bottom line is that AI is creating demand for AI legal services, and it is also creating demand for AI support positions within law firms to implement, manage and maintain AI systems,” Smith said. 

Lee & Associates NYC completed a new office lease for Jones Jones LLC at 44 Wall St. in Manhattan’s Financial District.  The law firm signed a 10-year, nine-month lease for 5,311 square feet.

Jones Jones will relocate from its former office at 5 Hanover Square amid the growing number of residential conversions taking place throughout the Financial District, including the planned conversion of 5 Hanover. The firm selected 44 Wall St. to remain in Lower Manhattan, citing the neighborhood’s accessibility, extensive transportation options, dining and retail amenities and strong value proposition for office tenants. 

The landlord was represented by George Comfort & Sons’ Alexander Bermingham.  Tenant representation was handled by Todd Korren and Noah Caspi of Lee NYC. 

“Lower Manhattan continues to attract tenants seeking quality office space at a strong value, particularly as older office properties throughout the neighborhood undergo residential conversions,” said Korren.  “Jones Jones was focused on remaining in the Financial District, and 44 Wall St. offered an ideal combination of location, accessibility and efficiency for the firm’s next chapter.”

JEMB Realty has signed a long-term, 5,000-square-foot lease with Miami-based personal injury firm Rubenstein Law at 1 Willoughby Square (1WSQ). The firm will relocate from 300 Cadman Plaza West, doubling its Brooklyn footprint and taking the remaining space on the 12th floor at 1WSQ, the tallest office building in Brooklyn. The announcement follows a deal announced last month for a leading streaming service provider to take 8,100 square feet at 1WSQ.

A CBRE team of Paul Amrich, Neil King, Zachary Price, Alex D’Amario and James Ackerson represented JEMB. Rubenstein Law was represented by Jenna Catalon, Matthew Cheezem and Scott Quick of Cushman and Wakefield.

“As part of Rubenstein Law’s Northeast expansion, 1WSQ emerged as the perfect choice for its exceptional quality and prime location,” said Quick. “The space supports their team’s growth while ensuring they can continue to deliver outstanding service to their clients.”

Gordon Rees Scully Mansukhani, LLP (GRSM), one of the largest law firms in the country with offices in all 50 states, has committed to an 11,500-square-foot office lease at Eastman Companies’ The Eisenhower, a Class A office complex located at 290 W. Mount Pleasant Ave. in Livingston, NJ. The law firm has relocated its NJ offices to the prominent office property.

The CBRE team of Jon Meisel, Erin Wenzler and Dan Casey spearheads the leasing campaign at The Eisenhower and represented Eastman Companies in the negotiations. Gordon Rees was represented by Bill Montana of Savills.

“The Eisenhower continues to attract strong tenants who view the building as the best option for Class A office space in the Livingston area,” said Meisel. “After an exhaustive search of the market, The Eisenhower proved to be the best choice for GRSM due to its strong, stable ownership, unmatched on-site amenities, and efficient layouts ideal for a law practice.”

Seattle Mayor Bruce Harrell recently signed a proposed bill that would promote the conversion of vacant and underused buildings into affordable housing.

The measure would help developers looking to convert existing buildings from commercial to residential uses. The proposed changes aim to make it easier and more straightforward to convert existing structures into residential use, supporting housing development in the city, particularly in and near downtown.

“While we know there remains a need for office space, this effort will give us flexibility to help optimize our built environment and create the downtown we want to see–a thriving workplace and vibrant community for families and residents of all backgrounds,” said Harrell. “These changes are a critical step in moving the idea of office conversion to a reality.”

The proposed legislation would establish clear guidelines for residential conversions and provide broad exemptions from design development standards. The changes would also reduce the cost of conversion to residential use by exempting conversions to housing from the City’s Mandatory Housing Affordability (MHA) requirements.