Legal Slice

Contrary to the broader trend of law firms reducing office space in other parts of the U.S., seven out of 10 Am Law 200 firm relocations in New York since early 2023 have been for the same or more space, according to data from commercial real estate firm Cresa. These firms include King & Spalding, Paul, Weiss, Rifkind, Wharton & Garrison, Wilson, Sonsini, Goodrich & Rosati, Susman Godfrey, Kilpatrick Townsend & Stockton, Greenspoon Marder, and Holland & Knight. From the start of 2023 to May 2024, 23 Am Law 200 firms signed leases totaling 2.83m sq ft in New York City. The trend toward securing larger or equivalent spaces reflects a preference for Class A buildings, many of which have undergone significant renovations. Data shows that 50% of relocations were to buildings that had or were receiving $100m or more in upgrades. Examples include Quinn Emanuel's move to 295 Fifth Ave after a $350m renovation, and Paul Weiss and Greenspoon Marder's move to 1345 Avenue of the Americas following a $120m renovation. Despite some moves to areas like Hudson Yards, Midtown Manhattan, particularly Times Square, remains the preferred location, with 81% of Am Law 200 firms situated there. Notably, Covington & Burling's 235,000 sq ft lease at 30 Hudson Yards was the largest signed in June 2024.