Local law firms inking more lease deals and for longer - Crain's New York Business
Law firms in the city may have taken a hiatus from signing leases during the pandemic, but more favorable deal terms and cheaper space have them putting pen to paper again.
Compared to other law hubs in the U.S., law firm activity in New York has been more negatively impacted in the past two years. Leasing activity declined by 44%, to an average of 1.5 million square feet, and many of the deals or moves that may have been finalized during that period were negotiated prepandemic, according to a recent report from Savills.
But during the fourth quarter of 2021, increased confidence in their future led law firms to sign leases lasting an average of 143 months, surpassing prepandemic deals averaging 138 months and a pandemic low of under 100 months, the report showed.
Firms are also signing more deals. During the quarter, 500,000 square feet worth of space was leased, more than double the 200,000 square feet leased in the fourth quarter of 2020 and on par with the amount leased in the fourth quarter of 2018. But the number is a far cry from the 1.4 million square feet leased in the fourth quarter of 2019.
A majority of the deals are renewals rather than brand-new leases, noted Tom Fulcher, vice chairman and chair of Savills’ legal tenant practice group, but some new leases show an ongoing flight to quality as firms continue to seek out new buildings in prime locations, with prime amenities.
The largest leases of the quarter include Dechert’s renewal at its 241,000-square-foot space at 1095 Sixth Ave., Venable’s relocation to a 157,811-square-foot office at 151 W. 42nd St. and Glenn Agre Bergman & Fuentes’ new lease for 27,231 square feet at 1185 Sixth Ave.
In December Indiana-based law firm Barnes & Thornburg announced it would be tripling its Manhattan footprint with a 14-year, 33,500-square-foot lease at 390 Madison Ave.
source: https://www.crainsnewyork.com/commercial-real-estate/local-law-firms-inking-more-lease-deals-and-longer
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