Key Highlights San Francisco:
– In San Francisco, activity among law firms has been greatly subdued over the past year, conceivably one of the most stagnant period in the last decade, as the legal industry still recovers from declines experienced during the recession.
– Firms that have succeeded are those with strong ties to the thriving technology industry and start-up community – these firms as well as other law firms that have remained competitive, are some of the few maintaining their current footprints or expanding.
– While law firms still experience moderate leverage in the market due to a significant amount of new supply coming online, the landlord community remains bullish as a result of the flourishing technology industry.
– Despite a slight rent premium for new construction, the capital expenditure involved in relocation is a bitter pill many law firms are unwilling to swallow.
– Although the shifting landscape of the market presents its own challenges, law firms in San Francisco strive to enhance the quality and culture of their firms through creating more efficient, collaborative and welcoming office space as they look out over the next 20 years.