Law Firm Real Estate Strategy: Attorney Offices Are Out, Conference Rooms Are In

By CEO Alaa Pasha in Law Journal Newsletters
November 1, 2024

Law firms are navigating a paradigm shift in how they approach office space. With the rise of flexible workplaces, firms are finding that when their attorneys do come into the office, the main goal is to connect and collaborate with peers—and this shift has transformed how law firms address their real estate needs.

Before the pandemic, the norm for many law firms was to allocate a whopping 1,000 square of office space per lawyer. However, this standard has dropped significantly, with firms now averaging closer to 600 square feet per lawyer, according to Savills data cited by the New York Times[1].

Crowell & Moring’s decision to relocate its New York office exemplifies this trend. The firm moved from a traditional Midtown office to a more compact, flexible space on the West Side, focusing on sit-to-stand desks and soundproofing elements that enhance collaboration in smaller areas. Clifford Chance also embraced this shift, reducing its office space by 25% while adding more lawyers.

Aggregate industry data from Kastle Systems supports this thesis, showing that firms now allocate 51.9% of their seating for hoteling or reservable spaces and only 46.1% for permanent seating. This hybrid model gives firms the flexibility to accommodate rotating in-office schedules while reducing overhead costs associated with large, underutilized office space.

Out with Attorney Space, in with Collaboration Space: How Conference Rooms Rose to the Top

The shift to smaller office spaces has increased the importance of conference rooms and collaborative spaces. Conference rooms, once seen as peripheral, are now at the center of office design. Modern law firm conference rooms are equipped with cutting-edge video technology to support hybrid meetings, as many court proceedings and client consultations continue to happen remotely. Larger law firms, such as Davis Polk and Clifford Chance, have prioritized integrating new AV tools and multi-functional spaces to meet these demands.

This transformation extends to small details like electrical outlets at individual seats, enabling seamless collaboration without disruptions. These new spaces foster teamwork and provide venues for informal interactions, which firms hope will entice lawyers to come into the office more frequently. Venable’s experience demonstrates the value of these spaces; after upgrading their office with collaborative features, their occupancy levels began aligning with firm policies—without strict mandates.

Managing Flexible Seating and Reservations: A New Challenge for Law Firms

The transition to collaboration spaces like conference rooms in conjunction with flexible seating models has introduced significant operational challenges. Pre-pandemic, firms relied on outdated tools like spreadsheets to manage room reservations and seating assignments. However, the growing complexity of hybrid schedules requires more sophisticated systems. Now, workplace management platforms enable law firms to manage and optimize everything in their workplaces from seating assignments across multiple locations, to conference rooms.

Law firms are also adapting to new hybrid work patterns. On average, lawyers are in the office 2.63 days per week, according to the Flex Index, which means that permanent office space is no longer necessary for every employee. Instead, firms are focusing on collaboration spaces where legal teams can come together on designated in-office days. This strategy supports both employee satisfaction and operational efficiency, as seen in firms that offer private spaces for specific needs, such as nursing rooms for new mothers.

The Imperative Role of Technology

With flexible work here to stay, effectively managing conference rooms is more than just a logistical challenge—it is a business imperative. Many law firms are abandoning outdated tools like spreadsheets and fragmented booking systems, replacing them with integrated platforms that streamline room reservations across multiple offices. This shift toward technology is essential to support real-time collaboration and ensure the efficient use of space.

The complexity of flexible seating and hybrid meeting patterns requires advanced systems. Technology-driven conference room management helps law firms address several critical needs:

• Optimizing Room Usage: Law firms can monitor actual usage versus plans, ensuring that rooms and collaborative spaces are neither underutilized nor overbooked.
• Supporting Hybrid Collaboration: Integrated systems allow lawyers to seamlessly switch between in-person and virtual meetings without technical issues, enhancing productivity.
• Enhanced Employee Experience: Platforms allow employees to easily find available spaces or reserve specific rooms across multiple locations, fostering collaboration and improving morale.
• Data-Driven Decision Making: Analytics tools built into these systems provide insights into usage patterns, helping firms plan for future space needs and investments strategically.

By investing in a modern workplace management platform, law firms ensure that their conference rooms and flexible seating models are not just reactive solutions but proactive tools for business growth. As employees increasingly rely on technology for collaboration, firms with integrated room management systems will be better equipped to meet evolving client expectations and stay competitive.

Conclusion: The Future of Law Firm Offices

The shift towards smaller offices and flexible spaces is not just a cost-saving measure; it is a strategic response to a changing workplace. As firms embrace flexible work models, the need for well-designed conference rooms and collaborative spaces will continue to grow. Law firms must invest in technology and adopt smart office designs that meet the evolving needs of their employees.

At the same time, the trend toward flexible seating offers both challenges and opportunities. With sophisticated platforms managing room reservations and seating arrangements, firms can optimize their real estate usage while enhancing the in-office experience for their employees. In this new era, law firms that successfully balance flexibility with collaboration will be best positioned to attract top talent and serve their clients effectively.

By investing in collaborative spaces, adopting advanced room management solutions, and rethinking office design, law firms can transform their workplaces into strategic assets that align with the future of work.

[1] Corner Offices Are Out; Collaboration Is In. Say Hello to the New Law Firm. NYT 2/27/2024