Redefining Legal Office Spaces: Creating Work Environments That Attract Top Talent

Posted by Knight Frank Newcastle on 18th September 2024 -

As highlighted in our Q2 2024 Legal Sector report, Law firms keen on attracting and retaining top talent are increasingly prioritising "best-in-class" office spaces. These spaces are no longer just functional; they are designed to foster wellbeing, collaboration, and flexibility—key attributes that align with the expectations of a younger, more discerning workforce.

Best-in-class office spaces are on the rise

One of the most notable trends in the legal sector is the move towards office spaces offering a wide range of amenities designed to improve employees' overall quality of life. This shift is driven by the need to remain competitive in a market where talent is highly sought-after and often in short supply.

"Law firms are prioritising best-in-class spaces," notes Natasha, reflecting on the recent trends observed within the sector. "These spaces are not just about functionality; they're about community, sustainability credentials, and ultimately, creating environments that attract and retain talent."

A standout example of this trend can be seen in the recent office space developments by major law firms. Natasha highlights the office space of one Law firm, which is setting a new standard in the sector. "I was blown away by it because of the amount of room. They had a yoga studio, a nursing room, meditation rooms, and sleep pods—so much, including amazing collaboration areas- and they maximised the natural light." This level of attention to employee wellbeing is becoming increasingly common, signalling a broader trend towards creating spaces that are as conducive to personal wellness as they are to productivity.

Amenities as a competitive advantage

The inclusion of such amenities is not just a perk. It is becoming a strategic imperative. As Natasha explains, "It's not just about attracting new talent; it's about keeping up with competitors." In a sector where work-life balance has traditionally been a challenge, integrating these amenities offers a tangible benefit that can tip the scales when top talent is considering their options.

One of the most intriguing aspects of this trend is the way these amenities are integrated into the workspace. Natasha comments, "We've seen examples where you might put those facilities in the lower ground or the basement, but these amenities are just next to meeting rooms—it's amazing." This integration reflects a shift in how law firms view the work environment, recognising that wellness should be front and centre, not an afterthought.

Catering to a new generation

The changing expectations of the younger workforce are a significant driver of these trends. As Natasha points out, "It's the environment you're working in. Especially for the younger generation of law students coming in—they probably want that collaboration space more." This generation values not only work-life balance but also the quality of the work environment, which includes everything from natural light and outdoor spaces to wellness rooms and high-quality communal areas.

Moreover, the data supports this shift in priorities. As stated in our Q2 2024 Legal Sector report, research shows that 71% of UK associates now prioritise work-life balance in job hunts, while 70% say that higher compensation would retain them. Work-life balance perks and authentic ESG initiatives are highly valued for law students. This underscores the importance of creating workspaces that cater to these values, ensuring that law firms remain attractive to the best and brightest.

The importance of workspace location and flexibility

While amenities are crucial, location remains a key consideration for law firms. With its robust transport links and evolving amenities, the City continues to be a prime location for law firms. "The City still appears to be a super attractive place for law firms to base themselves," says Natasha, noting the resilience of this area, particularly post-COVID.

Flexibility is another critical factor, especially as firms negotiate leases in a market with fluctuating demand. The discussion highlighted that law firms are often incentivised to take longer leases, with the best spaces usually requiring a commitment of 10 years or more. However, flexibility within these leases is also important, with options such as rights of first refusal and the ability to hand back floors being highly valued.

In a market where top office space is in short supply, being creative and proactive in lease negotiations can deliver significant value. "It's about trying to unearth interesting off-market ideas," says Natasha, "that's what's going to deliver the most value for clients."

Future-proofing office spaces in the legal sector

As we look towards the future, the demand for best-in-class spaces that offer a blend of wellness, collaboration, and flexibility will likely increase, driven by both market forces and the expectations of a new generation of legal professionals.

For law firms, the challenge will be to stay ahead of these trends, ensuring that their office spaces not only meet the current needs of their workforce but also anticipate the demands of the future. As Natasha aptly puts it, "You can never start too early" when it comes to planning and securing the right office space. In a competitive market, those who take a proactive approach to office space planning will be best positioned to attract and retain top talent, ensuring long-term success.

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