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    Beyond Trophy Space  489  0 Kommentare Lack of Supply, Rising Rents Challenging Law Firm Office Norms

    CHICAGO, IL--(Marketwired - Oct 30, 2014) -  JLL (NYSE: JLL) -- Law firms have long been an outlier in the evolution of the American workplace, holding steadily to trophy space along the premier addresses of U.S. central business districts. But according to JLL's newly released Law Firm Perspective, the legal sector has embraced change -- and some surprising new zip codes.

    Law firms are looking beyond their traditional trophy locations to locate near clients, attract new talent and reduce expenses. Lack of supply -- not cost -- is actually the driving force.

    Revenue for the legal sector is up by 4.4 percent, according to The American Lawyer, but that growth is tempered by rising rents and a shortage of available space in typical law firm office locations. JLL's report predicts 77 percent of North American cities will see a rise in rents due to scarcity of available offices. On average, law firms have seen rents rise 3.3 percent year-over-year and pay an 18.1 percent premium for trophy space.

    In some markets such as Boston, Houston and San Francisco, rents have jumped more than twice that rate. The result is law firms are finding new places -- not necessarily ways -- to work.

    "Growth may be back in the legal sector, but firms are keeping productivity, efficiency and innovation front and center as they continue to re-define who they are and how they operate," said Elizabeth Cooper, co-lead of JLL's law firm practice group. "Following years of retrenching, they are proceeding cautiously and strategically to become more nimble to meet client demands, overcome supply challenges and adjust to a rapidly-changing workforce."

    The Efficiency Plateau
    JLL's review of the top 35 U.S. law firm markets indicated that market-by-market, 55 to 90 percent of law firms have already devised substantial efficiency measures in new or restructured leases. In Washington, D.C., for example, 82 percent of firms have embraced rightsizing strategies in the current cycle. That figure is telling, as law firms in the nation's capital comprise the largest segment of the tenant base with 45 percent of the core Class A office market.

    Rightsizing has begun to plateau in certain markets, and the industry has responded by rushing to new locations and secondary cities to reduce cost. New neighborhoods near amenities that attract and retain younger talent and secondary-city locations providing valuable cost savings are slowly pulling U.S. law firms into uncharted territory.

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    Beyond Trophy Space Lack of Supply, Rising Rents Challenging Law Firm Office Norms CHICAGO, IL--(Marketwired - Oct 30, 2014) -  JLL (NYSE: JLL) -- Law firms have long been an outlier in the evolution of the American workplace, holding steadily to trophy space along the premier addresses of U.S. central business districts. But …