Jump in London office lettings to law firms, with US companies dominant
Law firms signed for over 380,000 sq ft of London office space in the third quarter, which was 52% higher than a year earlier according to property consultancy Knight Frank.
The research also said the take-up figure was 70% above what was done in the second quarter of 2023.
Of the total take-up in the three months to September 30, US firms accounted for 90% of legal sector activity. Recent deals inked included New York-founded Proskauer Rose taking 60,000 sq ft at the 8 Bishopsgate development.
A host of employers have embraced hybrid working following the pandemic, but a number of landlords have reported good demand for high quality modern offices in the City and West End even if staff are not in headquarters every day.
Jennifer Townsend, partner at Knight Frank, said: "London remains a top expansionary target for international law firms, with its role as a finance hub and incubator for innovative start-ups driving new business opportunities for firms embracing the advent of AI and emerging technologies. US firms have been driving the market through expansion and seeking prestigious, ‘super-prime’ space, which they intend to use as a tool for talent attraction as well as to make a clear statement about their brand to clients.”
The company added that law firms have a further 1.4 million sq ft of live office requirements in London, 50% of which comes from US firms.
Richard Proctor, head of London tenant representation at Knight Frank said: “International law firms at the leading edge of the sector’s move toward office-led hybrid working models, increasingly value environmentally sustainable, flexible, and modern workspaces with amenities and services that will be attractive to future graduates."