Law Firm Leasing Reaches Record as Renewals Outpace New Deals

The U.S. legal sector has maintained steady activity, with 2025 closing with record-level office leasing, according to a Cushman & Wakefield analysis. Fourth-quarter signings reached 4.3 million square feet, up 9% quarter-over-quarter, bringing the full-year total to 18.8 million square feet, a 3% increase from 2024 and the highest annual total on record.

Major legal markets led activity, accounting for 67% of all Q4 leasing. The top 10 markets rebounded following a softer third quarter, with New York City, Boston, Atlanta and San Francisco posting the largest deals. Seven of the top major markets recorded quarter-over-quarter leasing gains and nine of the 10 largest Q4 law firm leases occurred in major markets, reflecting continued concentration in established hubs. Overall, the legal sector represented 8% of total major market office leasing activity.

A notable shift emerged in Q4 as renewals outpaced new leases for the first time since Q2 2024, driven by limited availability of high-quality space. New leases represented 41% of quarterly activity, below the full-year trend of 54%. Most renewals involved minimal footprint changes, while new deals generally drove expansions, with 62% of the latter increasing space, compared with 17% of renewals.

Footprint growth remained solid throughout the year. Expansions accounted for 38% of all leases, the highest share since 2020, while downsizing fell to 23%, the lowest level seen since that year.

Large and mid-sized leases saw strong activity, with 140 signings in the 25,000–75,000 square foot range — the most since before the pandemic. Plus, 34 leases exceeding 75,000 square feet, surpassing 2024 totals.

The largest 25 law firms continue to concentrate in top markets, employing nearly 28,000 professionals. New York City remains dominant, hosting over 11,000 AmLaw 25 attorneys, more than double the next-largest market. Washington, D.C. AmLaw 25 firms expanded 6.8% across the top 10 markets from 2019 to 2025, while mid-sized and smaller firms continued to drive demand outside this segment.

Looking ahead, Cushman & Wakefield expects 2026 to remain active, with firms in markets that have limited new construction pipelines likely to rely more on renewing in place. With supply constraints continuing, demand for quality space is expected to support ongoing footprint growth while maintaining stability in major legal markets.