Law firms lead the charge for new office space in London
Law firms continue to drive demand for prime office space in London to meet the wide-ranging strategic agenda set out in our latest sector research.
2 minutes to read
Law firm take-up in London continued its record-breaking streak with over 400,000 sq ft of space acquired by law firms during Q2 2022. This equates to 13% of London take-up and nearly a quarter of City take-up.
The largest deal was Kirkland & Ellis’s 218,600 sq ft pre-let at M&G Real Estate’s 40 Leadenhall development, EC3 which Nuveen is developing. The scheme is targeting a five-star NABERS rating as well as BREEAM Excellent, SmartScore platinum and WELL platinum ratings.
State-of-the-art amenities include a 200 seat auditorium, fitness studio, gender neutral end of trip facilities and wellness suites and lounges as well as multiple terraces. This deal underscores the fact that law firms see sustainability as a key factor when looking at office locations, something we highlighted in our initial legal sector research. It is also of note that Kirkland & Ellis have secured expansion options to accommodate potential growth in the future.
Elsewhere in the City, international law firm HFW acquired space at Mitsubishi Estate’s 8 Bishopsgate scheme, EC2 which Stanhope is developing. The building is targeting BREEAM Outstanding and WiredScore platinum certification and features solar panels, smart floor-by-floor air provision, light responsive blinds and rainwater harvesting and greywater recycling. Amenities include shared spaces, a top floor viewing gallery, auditorium, one of the largest bike parks in London and ample outdoor space. Jeremy Shebson, Managing Partner, HFW was quoted as saying “We are very excited to be moving to one of London’s best and most sustainable new developments. We truly believe this will be transformational for HFW in London, giving us modern, agile and progressive space that allows us to adapt to the changing needs of our people and clients”. HFW announced a new hybrid working strategy in August 2021, whereby London-based full time employees are now eligible to work from home 40% of the time. Jeremy added that environmental credentials were a key reason for choosing the site.
In the West End, Fosters is leaving Mayfair for Marylebone in a relocation to a single site that will bring its employees together under one roof to better reflect its collegiate and collaborative culture. 22 Baker Street will undergo refurbishment prior to the move to include an expanded roof terrace, wellbeing amenities and sustainability improvements.
Finally, Kirkland & Ellis and Hogan Lovell’s opted for short-term leases until their new headquarters are completed. This underscores the fact that many law firms are prepared to act early to secure best in class space. Indeed, law firms accounted for 41% of London pre-lets in 2021.
Analysis of Q2 2022 London law firm leasing activity provides further evidence of how the trends articulated in our latest law firm research are playing out. ESG, health and wellbeing and connectivity are all to the fore along with a preference for best-in-class space in amenity rich locations that can flex to changing working practices and client needs. With 1.28mn sq ft of active legal sector requirements across London we anticipate further relocations throughout the rest of 2022.