Q1 2026 Law Firm Office Report
Highlights
- Law firm leasing reached 284,635 SF across 9 deals in Q1, down 51% year-over-year and 64% from Q4 2025. A notable slowdown, though one quarter doesn’t define a trend. (Some reports include Gibson Dunn in Q1 2026—I’ve counted it in Q4 2025.)
- Big Law is still expanding. Three firms grew this quarter, including two AmLaw 50 and one Magic Circle firm—clear signs that firms with long-term clarity are still committing.
- The shift further West in Midtown continues. Withers moved to 30 Rock from Park Avenue, and Groombridge Wu relocated from Fifth to Sixth Avenue.
- Concessions are tightening. Free rent is nearing one month per year, signaling returning landlord leverage in top-tier buildings.
- Residential conversions are still driving some relocations. Gallet Dreyer Berkey moved as their building entered conversion—something we may see more of during 2026.
- Work letters are ranging $130–175/SF, and total 2025 leasing volume exceeded 2.9M SF.
Bottom line: While volume is lighter don’t read much into that as it’s likely due to less expirations. Concessions are tightening as leasing improves. Firms that are leasing doing so with clear intent.