How small law firms benefit from alternatives to the traditional law firm lease

When you set out to launch your own law firm, hanging that shingle with your name on it might feel like the most official step. However, a traditional law firm lease has its drawbacks and many small law firms thrive better in alternative settings.

CONS of a law firm lease

I start with the cons because these hit on most of the concerns raised by new and small law firms, including:

  • Cost. Especially for start-up law firms, the high cost might keep office space out of reach
  • Time commitment. Landlords often require leases of two years or more.
  • Lack of flexibility. You sign a lease for 1,000 square feet, but need half that or double that in a year or two.
  • Additional overhead costs. You’re on the hook for wifi, furniture, equipment, security and more.

Once you’re in, you’re in for a few years. It’s a financial hit up front and a risk as you work to build up your client roster.

This law firm advisor cautions:

“Many law firms, particularly those in growth mode, may be tempted to lease larger spaces in anticipation of future expansion. While optimism is commendable, overcommitting can lead to paying for unused space, straining the firm’s finances. The commercial real estate market is unpredictable, and while a booming business today might necessitate more space, a downturn tomorrow might leave firms grappling with excessive overheads.” 

Law firms of all sizes should assess their risk tolerance before committing to a long-term lease or an outsized space.

PROS of a law firm lease

For some law firms, dedicated office space and a lease makes sense. Some of the benefits of a traditional office space include:

  • Visibility in your local market. You will build relationships with other business leaders in the vicinity of your office.
  • Room to expand as you add attorneys and staff. If you plan perfectly, you can snag a space with room to grow.
  • Professional meeting space. Welcoming clients into a well-appointed office helps secure and build your reputation.

What if I told you that you can enjoy most of these benefits without the big spend on a long-term, dedicated office? Keep reading.

Alternatives to traditional office space

At one time, the only alternative to a commercial real estate lease was a home office. Now, law firms have many more options available to them, including:

  • General coworking spaces. These spaces lease part-time or temporary desk space to professionals in all industries.
  • Industry-specific coworking spaces. These coworking locations cater to a specific industry, such as law, tech or health care.
  • Shared offices. This option takes the coworking concept one step further by offering more permanent offices or suites to several professionals within the same building. These can be industry-specific or general.
  • Subleasing. For larger law firms that already have dedicated office space, offering sublease options to non-competing law firms can ease the financial burden of real estate costs.

The benefits of these alternative law offices include:

  • Cost savings. Most of these options allow for flexible terms, and you only pay for the space and time you need.
  • Camaraderie and networking. The value of a built-in network for a small, growing business cannot be overstated.
  • Infrastructure. Furniture, wifi, telephones, copy facilities and even coffee and receptionist coverage come with your agreement.
  • End of isolation. Goodbye home office isolation and distractions; hello focus time and support.

As this RocketLawyer writer reports:

“I’ve worked remotely for many years and as anyone who’s done so will tell you, the biggest drawback is the lack of access to community on a daily basis. The relationship building with your team. The mentoring and the being mentored. The opportunity to learn – serendipitously and purposefully. The office socials, the celebration of a victory, the comfort of sharing a loss. The meaningful relationships that emerge outside of the office.

Working from home won’t fix these shortcomings. A shared space with like-minded individuals who understand the industry and share the delights and problems related to the profession, helps.”

A professional office, a support network and a place to separate work from home life can help law firms of all sizes succeed, but a traditional office is not the only way to find it.

To learn more about our coworking and shared offices for lawyers in Denver and Las Vegas, reach out to us.