Law practice are using less than half of their property. Kastle Systems reports that since March 2023, the total workplace tenancy rate is 48%, with the tenancy rate for law practice differing around that, varying in between 26% to 50% of their area for a lot of companies. See, Colliers 2023 Law Office Workplace Markets The United States And Canada Report With the typical law practice costs 10.5% of gross yearly profits on property ( see, Cushman & & Wakefield 2023 Bright Insights), this overhead cost is substantial– and not using half or more of it is of huge issue.
Here’s a fast, reductive estimation– provided the typical full-service Class A asking lease throughout 21 markets is $40.17 per square foot ( See, Colliers, supra) which law practice inhabit roughly 120 million square feet of property in overall, we’re speaking about a huge number: $24 trillion dollars in unused property each year. It truly must come as not a surprise that 65% of law practice are anticipated to lower their area requires, both when restoring in location or transferring. Ibid