Law Firms
Landlords Fear Law Firm Layoffs
Posted Oct 28, 2008, 07:23 am CST
By Debra Cassens Weiss
Associates aren’t the only professionals fearing law firm layoffs. The idea also troubles landlords, who rely on law firms to pay top dollar for office space that offers technology upgrades and flexible floor design.
In Chicago, firms are willing to pay more than $50 a square foot, compared to average rent of $36 a square foot for high-end office space, the Chicago Tribune reports.
Law firms have also driven new development in the city, the story says. Sidley Austin and Mayer Brown are anchoring new buildings. Meanwhile three other law firms—Kirkland & Ellis, Jenner & Block and Skadden, Arps, Slate, Meagher & Flom—will be moving into new digs next year.
The moves will free up office space in the law firms’ former buildings at the same time that space leased to troubled financial services firms could be opening up. The bad news for landlords translates to good news for law firms, which may be able to find better rental deals in the coming year, the story says.
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