American law firms with London offices are outpacing their UK counterparts in securing larger City premises, according to new data from estate agent Knight Frank.
Expanding Footprints
Since 2020, more than 70% of the 22 legal firms relocating office in London took up more space as they expanded headcount, with 14 of those being US companies. Knight Frank partner Richard Proctor noted that US-founded firms with strong London presences, including Kirkland & Ellis and Latham & Watkins, recognize that significant scale in London is important. He stated that US firms are “the dominant element of the growth trend” of law firms expanding in the City.
Proctor acknowledged that UK firms have also taken more space, but emphasized a slight dominance by US firms. Many American firms are opting to lease space in Bishopsgate within high-rise tower buildings, which Proctor attributes to US firms being “very used to towers.”
Designing for Productivity
Beyond expanding physical space, law firms are designing offices to encourage employees to return rather than work from home. Proctor explained that many firms have realized the need to get people to invest in their commute, particularly post-Covid. He added that creating environments encouraging people to come in drives productivity, learning, and career development for younger members of law firms.
Knight Frank partner Jennifer Townsend linked aggressive hiring to the need for relocation as firms expand their London presence. She noted a very aggressive war for talent, particularly driven by large US firms. To attract and retain new hires, these firms are designing spaces with state-of-the-art gyms, dining areas, and quiet pods.
Pay Wars and Legal Dominance
US law firms are also driving a pay war in London, leaving UK firms struggling to match surging salaries for junior lawyers.
Beyond office space and compensation, US firms are strategically targeting high-stakes disputes in London. A report from consultancy Solomonic revealed that US law firms are securing some of the biggest legal disputes in London, positioning themselves at the top of the litigation hierarchy. The findings indicate over 100 law firms have evidently established themselves as go-to choices for the most complex, highest-value, and most trial-intensive disputes in London.