Austin Leads The Way For Legal Industry Growth Markets In The U.S.

Austin Leads The Way For Legal Industry Growth Markets In The U.S… Lawyer and legal services employment growth outpaces all other U.S. markets

Austin, TX– According to new research from CBRE, Austin is the top growth market in the U.S. for lawyer and legal service employment.

Overall, the market recorded a 10.6 percent growth in lawyer employment and an 11.1 percent growth in legal services employment since 2015. This far outpaces the national average of 3 percent and 1.5 percent respectively. In addition, Austin was one of only three markets with a positive net absorption from law firms over the past 12 months.

Despite this growth, Austin still has an average total annual cost for legal companies that is below the U.S. national average, making it an attractive market to law firms seeking a Central Texas presence.

“Austin continues to have a strong and diversified economy, with a heavy emphasis on the tech sector,” says Jerry Frey, Senior Vice President at CBRE in Austin and a member of the company’s Law Firm Practice Group. “What we are witnessing now is that a number of major law firms in the country have recognized this and are looking to enter the market. Often these are firms who have had positive experiences in other large Texas markets, but want to have a strong Central Texas presence as this market continues to grow.”

“The growing tech presence, the large medical footprint and the capital seat of the state government makes Austin a market that can support both specialized practices and large, multi-practice firms, which is not often found in other markets,” continues Mr. Frey. “We expect law firms to continue locating and expanding in Austin in the near and mid-term.”

National Trends

Nationwide, the report finds that law firms are shifting recruitment strategies and expanding outside of traditional gateway cities to find new talent in lower-cost environments, often those with large, growing millennial populations.

Other report findings include:

• More than one-third of AM 100 Law Firms expanded in the past year, accounting for half of the 1.6 million square feet of law firm space absorption in the U.S.   
• For lawyer employment growth, Atlanta leads the nation, expanding 16.3 percent since 2015, while Austin leads the nation in legal services employment growth at 11.3 percent in that same time period.
• Six of the highest growth markets for legal sector employment (Austin, San Diego, Los Angeles, Orlando, San Francisco, Houston) are also among the top-10 markets for millennial concentration nationally, while six are among the top-10 markets for millennial growth (Austin, Orlando, Houston, Dallas/Ft. Worth, San Francisco, Phoenix).

“The expansion taking place is most often in lower cost markets, where large law firms are entering for business expansion and tapping into new talent at competitive price points,” said Jamie Georgas, Global Chair of CBRE’s Law Firm Practice Group.

To learn more about CBRE Group, Inc. visit their website at www.cbre.com.