Law Firms Are Planning Major Office Changes for Post-Pandemic Era

Firms are making decisions based on remote work preferences and office staffing needs, as shrinking the office footprint can mean big savings in the long run. Figuring out what the law firm workplace will look like post-pandemic is top-of-mind for Atlanta law firm leaders right now, as vaccines become more widely available. But many are already making workplace decisions in response to the pandemic, from installing new air filtration systems in offices to making remote work at least a part-time firm fixture after it recedes.

Firms are closely analyzing their workforces’ remote work preferences and who needs to come in when, as shrinking the office footprint can mean big savings in the long run. Cushman & Wakefield surveyed 700 U.S. firms in the fourth quarter of 2020, and only 7% of respondents said they planned to make no changes to their workplaces, said Sherry Cushman, who heads its legal sector advisory group. In contrast, another 69% said they’d make incremental changes, while 24% said changes would be huge. Large Atlanta firms are still generally between 15% and 30% office attendance—but firms are actively trying to figure out what attendance and space usage will look like post-pandemic, as many firm leaders hope they’re able to return to more normal office usage by Sept. 1. "Working remotely is here to stay," said Bryan Cave Leighton Paisner’s Atlanta managing partner, Eric Schroeder. "I don’t think we’ll ever be back to a 100% return to the office. The question is, what percentage will we be back to a year from now?"

Schroeder, like many firm leaders, thinks the office will become more of a destination. People on the same client teams, for instance, might come in several times a month specifically to brainstorm. Schroeder predicted some office-sharing and possibly even hoteling, with a cluster of open offices that people can sign up for when they come in.

Currently, Bryan Cave’s 80-attorney Atlanta office is at about 15% capacity, Schroeder said, and in a holding pattern until vaccinations are more widespread. After people are vaccinated and it’s safe to return to the office, the firm will become "much more purposeful about team-building and learning opportunities," he said. Bryan Cave is surveying lawyers and staff across its global footprint right now on what has worked or not over the past year of working remotely and what they want going forward. Schroeder was surprised at the positive responses from the firm’s Atlanta employees to a survey query about office sharing. The local marketing team, for instance, said one office would be enough for them. "People like working remotely, and we are as productive now as we were a year ago," he said.

That said, any office-sharing or hoteling will be voluntary, Schroeder said. "I don’t think it will be a one-size-fits-all rule. It will be driven by practice group and people’s individual circumstances," he said. Smith Gambrell & Russell, which will relocate to its new Atlanta headquarters on Sept. 1, is also planning its post-pandemic workplace. The firm is moving into five floors in a 31-story office tower under construction at 1105 West Peachtree St. N.W—a few blocks from its current location in Midtown’s Promenade building at 1230 Peachtree St. N.E. In response to health concerns around COVID-19, the new building has improved air filtration, with MERV 13 hospital-grade filters, and its ventilation system has been upgraded to draw in more outside air, said firm chairman, Stephen Forte. Meanwhile, Smith Gambrell also has added a bipolar ionization system that kills viruses and bacteria to its public spaces Smith Gambrell will still have individual offices for all attorneys and paralegals, but all will be standard-sized, as planned before the pandemic, Forte said. There will be about 180 individual offices in the new space, Forte said, and staff workstations will have 5-foot walls with glass partitions on top for extra protection. All are 6 feet apart. For right now, the firm is not planning any kind of office-sharing, Forte said, because "we do not want to take the chance of spreading any type of infection," but the situation could evolve.
Forte expects requests for more flexibility in remote work in the post-pandemic office, "but we’re not at that point yet," he said. "We’re not going virtual," he said. "We believe personal contact is important to maintain our culture—for collaboration and mentoring our younger people in their professional development. We are committed to our office space and leases." If the health situation improves sufficiently, Forte is hoping for an office return to some degree before Sept.1. Currently, Smith Gambrell’s Atlanta office is at about 15% attendance, which is voluntary.

Real Estate Costs

Flexible office work will ultimately affect law firm costs. With tech expenses rising for most firms, they are looking at ways to save on office space, said Sherry Cushman, who heads the legal sector advisory group for commercial real estate services firm Cushman & Wakefield. "If a third of the workforce works from home and uses the office as a touch-down space, it eliminates a lot of real estate." And if the other two-thirds only use the office two or three days a week, and firms deploy shared offices or hoteling, "the real estate gets skinnier and skinnier," she said, noting that single-size offices for partners and associates are key to providing flexibility for reconfiguring space.

One San Francisco firm recently decided to shift all its employees to shared offices when they return, Cushman said–which could mean only 50 offices are needed for 100 people. But Atlanta is more conservative on space usage, she added.
Firm leaders are weighing cost considerations with cultural concerns. Cushman said that not one firm had more than 5% of employees say they wanted to return to the office five days a week. "But the office is more important than ever because it’s where you go to get your gas tank filled," she added. "You go in two or three days a week to get the training, education, human interaction—the collaboration and culture." "The greatest fear law firm leaders have is losing the culture, and their biggest concern is mentoring for younger attorneys," Cushman said. "The key will be balancing when associates do come in."

Indeed, Bryan Cave’s Schroeder said his biggest concern for the future hybrid workplace is team-building and learning opportunities for the firm’s younger lawyers. "How do we keep up that sense of camaraderie and learning?" he asked.
It’s critical to Parker Poe Adams & Bernstein to maintain its culture through collaboration, mentorship and training, and the office is an important place for that, said Ellen Smith, the Atlanta office’s relationship partner. Remote work plans will likely be tailored to practice area or industry team, Smith said, but there will still be lawyers with designated office space.

Parker Poe’s Atlanta office moved into a floor of new space at 1075 Peachtree St. N.E. in Midtown last year, and the design is great for post-pandemic, Smith said. Everyone has an individual office, including legal assistants and staff, in the Charlotte, North Carolina-based firm’s 16-attorney Atlanta office, Smith said, adding that a big change such as 100% hoteling is "far off in the future." "We want to get people back in, but with flexibility," she said, so the firm is still assessing how the hybrid model will play out for remote work and office design.
‘War for Talent’

Cushman noted that firms’ headquarters are driving office usage decisions–and 25% of Am Law 100 firms are headquartered in New York. "A New York-based firm is going to implement standards firmwide with no worry to what’s happening in Atlanta." But no matter the location, firms need to understand office space trends on a macro basis, Cushman said, adding that the "war for talent" is still the No. 1 concern for most firm leaders.  "Firms that are not able to adapt enough will lose their talent," she said, so leaders are thinking about how to use their office space to attract younger lawyers and lateral recruits. "It’s not about being absolutely precise about policies right now. It’s about being open-minded to the concept of change," she said. "It’s a balancing act, but it’s a wonderful opportunity to try something different that a year ago would never fly."

Source: Daily Report Online