Law firms and lease comps are keeping the Atlanta market on its toes

– In 2023, major U.S. markets noticed an increase in law firm market activity due to the state of the economy, as law firms take advantage of the tenant-friendly environment to negotiate better rates and concession packages. With the strong leasing activity for this industry continuing in 2024, the discussion is now centered around whether law firms are expanding or contracting their office footprint.

– So far this year, only 12% of law firms that have signed deals are downsizing their space, 23% are expanding and 26% are maintaining their original square footage when renewing their lease. Given law firms are a heavy office-using industry (the third busiest office-using sector according to Avison Young’s Office Busyness Index), this trend is anticipated to continue.

– While we have seen a couple tenants announce major downsizes within Atlanta, this breakdown and comparison shows us that law firms, whether they have an Atlanta presence or are a new to market tenant, are currently active in the market and making moves on committing to office space.