What these small law firm trends mean for your practice this year
The legal industry landscape continues to change and evolve to meet market and client needs. Staying in touch with small law firm trends can help you make better decisions for how to grow your practice year after year.
In 2025, we will be keeping an eye on the following trends and more:
Growing niche practice areas
The following practice areas continue to show strong demand, and small law firms that can get ahead of trends and needs in these areas will bolster business:
- Cybersecurity and data privacy. With increasing cyber threats and evolving data regulations (like GDPR and CCPA), demand continues to surge for expertise in cybersecurity law, data breach response and privacy compliance.
- Artificial intelligence (AI) law. As AI technology rapidly advances, legal issues surrounding AI development, deployment and regulation have become increasingly complex. Areas to watch include algorithmic bias, intellectual property rights and liability.
- Health law. The health care industry faces constant change, from regulatory shifts to technological advancements. Areas like telehealth, medical cannabis and health care technology have shown steady growth for several years.
- Environmental law. Growing environmental concerns and the increasing focus on sustainability are driving demand for expertise in areas like climate change litigation, renewable energy and environmental compliance.
For small law firms in complementary areas, developing a deeper niche practice in one of these areas could help you attract new clients in need of depth of experience.
Non-traditional office space
Another trend that experts expect to continue for the foreseeable future includes a move toward non-traditional office space and work models. For large and small law firms alike, expect to see more lawyers gravitating toward:
- Remote and hybrid work. The pandemic accelerated the shift toward remote work. Many small firms have embraced hybrid models, allowing for both in-office and remote work arrangements to improve work-life balance and attract top talent.
- Co-working spaces. Shared workspaces offer flexibility, cost-effectiveness and a collaborative environment. These spaces offer solo practitioners and small firms an attractive alternative to traditional office space in terms of affordability and the ability to connect with other business owners.
- Subleasing. Some small firms are opting for leasing a small space in a non-competing law office. This arrangements creates a win-win solution for both the independent lawyer and the larger law firm that has space to spare.
These non-traditional office options allow independent lawyers to grow at a sustainable pace without the pressure of a long-term, expensive law office lease.
Collaboration models
As this law firm consultant notes:
“Collaboration is key to unlocking your firm’s full potential. You can’t mandate collaboration, but you can orchestrate it where it matters most. By breaking down silos and fostering a collaborative culture, small to midsize firms can enhance business development efforts, attract and retain laterals and clients, and drive sustainable growth to punch above your weight class.”
Tap into the power of collaborative networks by connecting through:
- Law firm networks. Law firm networks allows for referrals, shared resources (like marketing and technology) and increased market reach.
- Strategic alliances. Collaborating with complementary firms (e.g., a litigation firm partnering with a transactional firm) can provide clients with a wider range of services and expertise.
- Technology-enabled collaboration. Tools like project management software, cloud-based platforms, and secure communication channels facilitate collaboration among lawyers, clients and other professionals.
- Entrepreneurial lawyer communities. Shared office spaces that cater to lawyers allow for a built-in collaborative and supportive network and no need to leave the office to find it.
Look for ways to support others and offer valuable insights. Give-and-take helps form a mutually beneficial relationship that will set the stage for future referrals and potential collaboration.
Technology
Law firm technology continues to evolve and change. For small law firms, it has evened the playing field in many ways by:
- Improving efficiency
- Creating better client communication
- Streamlining workflow throughout the case research and management cycle
In terms of trends, take note of how AI and related regulations will impact firms of all sizes. As Bloomberg Law notes:
“The integration of AI into larger industry and commercial sectors is raising complicated legal and compliance questions. Like with the recent development of privacy and cybersecurity laws, stakeholders are debating whether AI compliance standards should follow state-driven laws or a voluntary national framework. In 2025, regulators will likely begin to address how industries use the new technology, including with oversight strategies…”
We wish you a successful new year!
To learn more about LawBank’s collaborative office communities for small law firms, reach out.
