Law Firm Report - Q2 2026

Law firms continue to sign more large-block leases. Large national and elite firms are the engine behind this trend, driven by AmLaw 100 firms that continue to grow both organically and through M&A (e.g., the McDermott Will & Emery merger with Schulte Roth & Zabel, which closed last year).

Long-term deals drove most leasing volume, with law firm relocations typically signing 10-year-plus terms to secure landlord financing for improvements. Firms with limited options faced a supply-constrained market shaped by record-low construction volume.

The expand-to-contract ratio widened from roughly 1.2:1 two years ago to nearly 3:1 in the trailing 12 months.

Sublease share of all law firm leasing activity fell to 3.7% over the trailing 12 months from 6.2% two years ago, suggesting options are becoming increasingly scarce and/or firms are favoring longer-term direct deals for first-generation space.

Subleases signed in recent years at below-market rents are essentially no longer available for firms seeking discounted space options.

Leases signed with starting rents above $100 per s.f. doubled as a share of nationwide leasing volume, to 4.6% of deals from 2.3% two years ago and deals above $75 per s.f. also climbed as law firms continued to gravitate to best-in-class space.