According to JLL’s 2015 Law Firm Perspective, law firms across the U.S. are warming up to the idea of occupying creative office space. They are even locating outside of traditional CBD’s as rents continue to rise and the availability of quality Class A office space diminishes.
Are these national trends true to the Phoenix market? Somewhat.
In Phoenix, law firms typically locate within the Camelback Corridor, Downtown and Midtown submarkets. And while we haven’t seen any major users jump from traditional space to creative space, we are seeing firms use space more efficiently and show interest in different submarkets.
“As supply is beginning to decrease in some of the traditional markets, expanding law firms are looking at other suburban areas such as North Scottsdale and even Tempe and Chandler where the bulk of new construction is occurring,” said Jason Moore, Vice President of the JLL Phoenix office. “These are also the same submarkets where we are seeing creative users locate so we may start to see law firms show interest in creative-type footprints as they move from traditional file rooms and libraries to paperless, online-type space.”
Flexibility has become a critical element in regards any law firm space, including physical layout and lease terms. The rising rents are challenging firms to structure leases that can maintain flexibility and still take favorable advantage in the market. And above all, quality of space is remains a key focus for talent recruitment and retention efforts.