Conditions are highly variable within the real estate markets at the
core of law firm portfolios. A number of markets are seeing rental
cost escalation driven by the diminishing availability of high quality
space options, while others present good opportunities for law firms to
enhance their position.
As clouds continue to build on the macroeconomic horizon, and
caution returns, law firms will need to adopt a forensic approach to the
management of their real estate portfolio. This will ensure that assets
are optimised and that firms outperform their direct competitors.
Opportunism will be evident in some EMEA real estate markets as
law firms react to the changing environment. The traditional focus
on prime locations and trophy buildings will remain, but it will also be
accompanied by a new emphasis on workplace productivity and space
efficiency. This constitutes a ‘new normal’ for those managing real
estate within the legal sector.