Law firms are leasing more office space again as demand for AI-related legal advice, regulatory work, and complex business disputes drives record workloads.
After years of shrinking their real estate footprints, many firms are renewing leases earlier, expanding into larger offices, and opening new locations in fast-growing markets to recruit attorneys with specialized expertise, according to BisNow.
AI and Regulation Drive Legal Growth
Legal leasing has surged well above pre-pandemic levels. According to CBRE, leasing activity by law firms was 46% higher than the pre-2020 average in the year through the first quarter of 2026, while technology leasing remained below its pre-pandemic pace.
Cushman & Wakefield reported that law firms signed 4.6 million square feet of office leases during the first quarter alone, extending a four-year run of elevated leasing activity.
The growth comes as businesses seek legal guidance on expanding AI regulation, changing government policies, trade disputes, and other complex compliance issues. Demand for legal services helped drive a 13% increase in average law firm profits last year, according to a joint report from Georgetown Law and the Thomson Reuters Institute, while lawyer billable hours also climbed.
Law firms are also rapidly expanding AI practice groups. Cushman & Wakefield found job postings seeking attorneys with AI-related skills have increased sevenfold since generative AI became widely adopted in 2022.
Office Expansion Returns
The legal sector is reversing a long-standing trend of reducing office space. Before the pandemic, firms commonly downsized when renewing leases. Today, many are maintaining or expanding their footprints.
Major firms have recently signed some of the country’s largest office leases, particularly in Manhattan, where legal tenants account for a growing share of leasing activity. Expansion is also accelerating in markets including Miami, Austin, Dallas, Nashville, Charlotte, and Charleston as firms establish new offices closer to clients and talent.
Offices Are Changing Alongside AI
Although the amount of space allocated per attorney has declined, firms are using offices differently.
Rather than adding more private offices, many are investing in collaboration areas, large meeting rooms, mock trial spaces, client event venues, and hospitality-style amenities designed to attract talent and strengthen client relationships.
AI is also creating new space requirements. As firms deploy proprietary AI platforms and other legal technology, they are hiring specialists to implement, manage, and oversee those systems, adding new roles alongside traditional legal teams.
