2025-06-01-莱坊-London_Legal_Sector_Update_Q1_2025_4页_977kb

London Legal Sector Update - Q1 2025 Summary

Core Content

This summary outlines the key trends and developments in the London legal sector during Q1 2025, focusing on competitor activity, real estate demand, and emerging best practices. It highlights the impact of US law firms on the market and the strategic real estate choices being made by legal occupiers.

Main Trends and Developments

1. Lateral Hiring Surge

• US law firms are leading the charge in the London lateral hiring market.
• In January-February 2025, 155 partners and senior lawyers moved firms, a 33% increase from the previous record.
• This surge is attributed to aggressive recruitment efforts by US firms in the City.

2. Revenue Growth for US Law Firms

• US firms in London have achieved notable revenue growth:
  • Latham & Watkins: 25% increase in City office turnover to $850m.
  • Milbank: 40% increase in London revenue to $327m.
  • Akin: London saw the highest percentage increase in turnover among its global offices.
  • McDermott Will & Emery: Recorded its best financial year, surpassing the $100m revenue barrier.

3. Shift Toward In-Office Attendance

• Some law firms are increasing in-office expectations to ensure junior lawyers receive proper training and networking opportunities.
• A&O Shearman now requires 60% office attendance, with potential impact on bonus eligibility.
• WilmerHale and Paul Weiss are also pushing for four days in-office per week.

4. Real Estate Expansion and Relocation

• US law firms continue to expand their presence in London.
• Simmons & Simmons announced a major relocation to 25 Finsbury Circus, EC2, set to be completed by 2030.
• Simpson Thacher & Bartlett and Cravath, Swaine & Moore have expanded their space in the City, reflecting the trend of US firms increasing their footprint.

5. City Core Dominance

• The City Core remains the preferred location for legal sector occupiers.
• In Q1 2025, 98.85% of total legal sector space taken was in the City Core.
• 20.59% of City Core take-up was attributed to the legal sector.
• 98% of named legal sector requirements specify a location in the City or Southbank, reinforcing the area's appeal.

Key Real Estate Data

Total Leasing Volumes (sq ft)

• Q1 2025: 193,953 sq ft
• 2024: 704,352 sq ft
• 2023: 845,568 sq ft
• 2022: 1.60m sq ft

Notable Leasing Transactions

Building Features and Sustainability

• 25 Finsbury Circus, EC2 (Simmons & Simmons):

  • Refurbishment includes new storeys, rooftop terrace, and sustainability upgrades.
  • Features: Energy-efficient systems, flexible layouts, wellness areas, and end-of-trip facilities.
  • Certifications: Aiming for BREEAM 'Outstanding', WELL Platinum, EPC A, and WiredScore 'Platinum'.

• 100 Cheapside, EC2 (Cravath, Swaine & Moore):

  • Second-hand A-grade building with modern infrastructure and sustainability features.
  • Features: Solar panels, green/brown roofs, grey water recycling, and energy conservation measures.
  • Certifications: BREEAM 'Excellent', LEED 'Platinum', WELL 'Platinum', and ActiveScore 'Platinum'.

• CityPoint, 1 Ropemaker Street, EC2 (Simpson Thacher & Bartlett):

  • Refurbished building with extensive amenities, including a public plaza and health club.
  • Features: 100% renewable energy, low-flow sanitary ware, and 70% on-site recycling rate.
  • Certifications: BREEAM 'Excellent', LEED 'Gold', GRESB 'Five Star', ActiveScore 'Platinum', and WELL Health-Safety rated.

• 3 Lombard Street, EC3 (Shepperd Wedderburn):

  • Grade II-listed building with retail space and modern facilities.
  • Features: Wellness room, onsite gym, and end-of-trip facilities.
  • Certifications: BREEAM 'Very Good', EPC B, and WiredScore 'Platinum'.

Contact Information

• Richard Proctor – Partner, Head of London Tenant Representation
  Email: richard.proctor@knightfrank.com
  Phone: +44 20 7861 5159

• Will McDonnell – Senior Surveyor, London Tenant Representation
  Email: will.mcDonnell@knightfrank.com
  Phone: +44 20 8187 8701

• Jennifer Townsend – Partner, Occupier Research
  Email: jennifer.towsend@knightfrank.com
  Phone: +44 20 3866 8028