Mid-Atlantic Research Reflections 2024: Law Firms

Washington D.C. boasts the highest concentration of lawyers in the United States, making law firms the dominant private sector occupier in the District. Through November, 40 law firms signed leases totaling 1.3 million sq. ft. across the D.C. metro, with 92% of all leasing taking place in Washington, D.C. Leasing is on pace to reach its highest level since 2019 and is up 49% from the trough in 2022. Of note, 7 of the 8 largest deals in 2024 were relocations, as firms continue to exhibit a flight-to-quality.

Law firms drive activity in the Trophy and Class A+ segments of the market, accounting for 55% and 30% of leased office space in each class, respectively. With AmLaw 100 profit per equity partner rising 9.3% in 2023, and many firms expected to report even stronger 2024 performance and hiring levels, high-quality and well-located office space remains a tool for law firms to attract and retain top talent.

Despite record-high vacancy rates across the region, law firms looking for large blocks (50,000+ sq. ft.) of space in top-quality buildings have limited options. In the CBD and East End, there are currently 17 Trophy and A+ options, and only four have top-floor availability.