How your firm can make the most of evolving law firm real estate

As real estate costs have increased in many markets, law firm real estate has evolved to better meet the needs of large and small law firms.

If you run an established law firm, you likely have existing office space that no longer perfectly meets your needs. With more of your attorneys working remotely at least part time, big corner offices probably don’t make much sense. However, you want to maintain a professional atmosphere and reputation, and you want to welcome clients in a space that speaks to your high level of service.

So, how do large law firms bridge that gap?

Modern law office options

Some firms have downsized to offices with smaller footprints. Others have opted for a more open-concept office environment with fewer private offices and well-appointed conference rooms.

Before you downsize or remodel, however, consider your surplus existing space as a potential revenue generator. Independent lawyers and small firms could make ideal tenants.

Subleasing your vacant office space to a small firm could be a win-win solution. You earn revenue while the smaller firm gains an affordable and professional place to operate.

Finding the Right Fit

Choosing tenants in complementary, but non-competing, practice areas opens the door to collaboration between your firm and your tenants. In essence, you create an in-house referral network based on a deeper level of trust and familiarity than you could gain through traditional networking. Some relationships could even lend themselves to serving as co-counsel on certain cases.

To ensure that the arrangement will create a mutually beneficial relationship, you should meet with potential tenants a few times prior to signing any documents. Allow them to tour the space and meet your attorneys and staff. They should feel comfortable with your environment and your culture, and you should feel comfortable with how they intend to use your space and run their business.

Working with a subleasing agent can help give you peace of mind that tenants have been fully vetted. Your agent will also handle the logistics and particulars of the sublease.

A note about COVID-19

At the time of this writing, many companies have moved to a remote work model and social distancing to “flatten the curve” during the Coronavirus pandemic. As you navigate decisions during this time, you obviously need to place the welfare of your people first.

The Colorado Department of Public Health provides the following guidelines to employers:

  • Employers should take steps to make it possible for employees to minimize close contact with large numbers of people when necessary.

  • Make sure flex place options are available.

  • Urge employees to stay home when they are sick, and be flexible with sick leave benefits.

  • Model and encourage everyday actions to limit the spread of illness.

  • CDPHE Environmental Cleaning Guidance for COVID-19 – English

For employees who continue to work in the office, follow the environmental cleaning guide above and encourage everyone to adhere to strict hand washing, hygiene and social distancing measures while in the office.

As this situation continues to evolve, so may your response. In addition, your business needs to make contingency plans for the remainder of the year. Consider your options for how to manage your office and your workforce for the next month, six months and beyond.

Those plans should include strategies for managing your office space and overhead costs. If you don’t currently sublease space to tenants, you might consider that as part of your cost-saving strategy for the three remaining quarters of 2020.

To learn more about LawBank’s real estate solutions for law firms, including subleasing strategies, visit our website.