Conditions remain highly variable within the real estate markets at the core of global law firm portfolios. A number of markets are seeing diminishing availability of high quality space options, while others present good opportunities for law firms to enhance their position. As clouds remain on the macroeconomic horizon, and caution persists, law firms will need to adopt a forensic approach to the management of their real estate portfolio. This will ensure that assets are optimised and that firms outperform their direct competitors. Opportunism will be evident in some real estate markets as law firms react to the changing environment. The traditional focus on prime locations and trophy buildings will remain, but it will also be accompanied by a new emphasis on workplace productivity and space efficiency.

1. Law Firm Perspective
Global 2012
Preparing for growth
Conditions remain highly variable within the real estate markets at
the core of global law firm portfolios. A number of markets are seeing
diminishing availability of high quality space options, while others
present good opportunities for law firms to enhance their position.
As clouds remain on the macroeconomic horizon, and caution persists,
law firms will need to adopt a forensic approach to the management of
their real estate portfolio. This will ensure that assets are optimised and
that firms outperform their direct competitors.
Opportunism will be evident in some real estate markets as law
firms react to the changing environment. The traditional focus on
prime locations and trophy buildings will remain, but it will also be
accompanied by a new emphasis on workplace productivity and
space efficiency.

2. With pressure on firms
to improve the efficiency
and utilisation of their
office space, and a
growing number of firms
exploring more open
plan workplaces with a
less cellular structure,
many law firms are
finding that today’s
demands are testing
... their existing buildings.

3. Jones Lang LaSalle Law Firm Perspective • Global • 2012 3

4. 4 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Jones Lang LaSalle Law Firm Group
In the challenging economic environment we live in today, those occupancy services to our law firm clients, nationally and globally. The
who are tasked with management responsibility for global, national team understands the importance of providing timely, accurate and
or regional law firms increasingly find themselves in the real estate relevant market information to our clients to enable them to efficiently
business as a matter of sound firm management. The amount of time manage their real estate in such a way as to generate maximum
required to deal with portfolios in multiple offices in different cities and/ productivity while mitigating cost.
or countries has increased, and has become ever more complex with
critical events arising on a regular basis. These events are nearly Accordingly, we are proud to present the latest version of our global
always contextual; accordingly, they require a deep understanding of market perspective. This annual report provides information on 30+
local market conditions for proper evaluation and action. major markets across the Americas, Asia Pacific and Europe, the
Middle East and Africa. The report details market trends for law firms
With over 1,000 offices in 70 countries worldwide, Jones Lang LaSalle around the globe, with the goal of assisting you and your firm in
has the scope and platform to have a robust firm understanding of navigating the increasingly complex global marketplace.
those issues and events.
We trust you will find this information useful and solicit your feedback if
The Jones Lang LaSalle Law Firm Group concentrates on developing there are areas, that you would like to see expanded in the future.
occupancy strategies, executing transactions and providing related

5. Jones Lang LaSalle Law Firm Perspective • Global • 2012 5
In this report
Jones Lang LaSalle Law Firm Group 4 Melbourne 28
In this report 5 Shanghai 29
Global overview 6 Singapore 30
Law firm market map 8 Sydney 31
Global office property clock 9 Tokyo 32
Americas 10 EMEA 33
Atlanta 11 Amsterdam 34
Boston 12 Brussels 35
Chicago 13 Dubai Abu Dhabi 36
Dallas 14 Germany 37
Houston 15 London City 39
Los Angeles 16 Madrid 40
Miami 17 Milan 41
New York 18 Moscow 42
Philadelphia 19 Paris 43
San Francisco 20 Warsaw 44
Washington, DC 21 Contacts 45
Montréal 22
Toronto 23
Vancouver 24
Asia Pacific 25
Beijing 26
Hong Kong 27

6. 6 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Law Firm Global Perspective
Law firms continue to face a tough global operating environment, with become increasingly critical growth drivers for all business sectors -
macroeconomic pressures and uncertainty bearing down on many including law firms.
of the business sectors they serve. After a period of international
expansion and growth prior to the global financial crisis, the last four Emerging market expansion returning to the agenda
years have seen contraction and restructuring in the sector, with those Firms are increasingly looking to Asia for growth opportunities, with
firms previously dependent on financial services, particularly heavily a cluster of MA activity between US, UK and established Australian
impacted. The fall of Dewey LeBoeuf is perhaps the most notable firms as international firms seek to grow their presence in Asia. Africa is
example of the financial pressure faced by international firms but many also emerging as a nascent destination for law firms seeking to partner
others have had to restructure, shed lawyers and pare back expansion with the growing number of corporate clients growing their businesses
plans in light of the more challenging operating environment. in the region. Morocco has been one particular area of focus for law
firms over the past year with activity including Bird Bird forming an
Margin pressure and tougher operating conditions have had an explicit association with El Amari Associés, a legal services provider in
and pronounced impact on the real estate strategies of law firms. A Casablanca. Istanbul has been another market of focus, while many
more proactive management of real estate as a tool to both reduce established firms in Moscow are seeing solid growth in business
operating costs and improve productivity is being realised by many derived from domestic Russian clients.
managing partners in law firms in the US, UK and beyond.
Consolidation and lease events drive demand in mature markets
This report assesses the real estate market conditions for law firms Lease events remain a key driver of real estate activity in mature
in over 30 mature and emerging locations around the globe - the markets, in the absence of expansionary demand, acting as catalysts
opportunities and challenges vary widely. For those firms operating for change and analysis of real estate options and strategy. Lease
in multiple regions a clear understanding of this variance is becoming regears, renewals and renegotiations have been seen widely in
critical to achieving sustainable growth. European markets, as firms have sought to take advantage of softer
real estate market conditions and improve the terms of existing leases.
Clouds remain on the economic horizon
After a promising start to 2012, prospects have become gloomier In markets such as the UK consolidation is being widely seen among
across the global economy. Once more it is problems in the developed mid-tier firms, with a number of firms linking up with regional and
world that are causing concern. Recent weeks have brought both national contemporaries to benefit from greater economies of scale.
greater optimism and new fears in the Eurozone. The ECB’s new plan Such moves have been driving a consistent level of activity in real
for bond purchases and German support for additional ESM funds estate markets as firms take the opportunity to review existing real
mean that the euro area at last has a credible strategy to ease market estate and optimise portfolios for the shape of the new business.
speculation. At the same time, the deteriorating situation in Spain is
an uncomfortable reminder that economic concerns will not disappear Larger, established firms have also shown an appetite to leverage the
overnight. Such macroeconomic uncertainty has had a corrosive effect reduction in operating costs that active management of the real estate
on corporate sentiment, and confidence remains fragile. portfolio can bring. Cost-saving and space-saving solutions are being
widely explored with a some leading firms adopting the more open-
The legacy of the financial crisis remains a yawning performance plan, efficient work spaces that many other companies have adopted in
gap between advanced and emerging economies. Within a global other business sectors.
expansion of 2.4% over the year, GDP growth in developed economies
is projected to be 1.3% during 2012 as deleveraging continues. Building obsolescence an issue to watch
Prospects for emerging markets are slower than last year, but the With pressure on firms to improve the efficiency and utilisation of their
decline leaves growth at an enviable 5% year-on-year. This underlines office space, and a growing number of firms exploring more open
the fact that the emerging markets, particularly those in Asia, will plan workplaces with a less cellular structure, many law firms are

7. Jones Lang LaSalle Law Firm Perspective • Global • 2012 7
finding that today’s demands are testing their existing buildings. These
pressures are compounded by an increasing focus on sustainability
and CSR objectives – areas in which real estate can make a significant
and tangible impact. Over the coming years, and across a range of
global markets, building obsolescence will emerge a key issue forcing
relocation and impacting real estate strategy.
Onshore, Nearshore, Offshore?
Some law firms have also been assessing opportunities for locating
business functions in lower cost nearshore or offshore locations as a
further way of reducing real estate costs in prime head office locations.
After magic circle firms such as Clifford Chance and Allen Overy
explored shared service centres in India and Belfast, in 2007 and 2011
respectively, other large firms have been considering such moves,
although perhaps not at the pace initially anticipated by many
industry observers.
There is also a growing trend to outsource low grade legal work with
many corporates looking to hand over routine legal work to lower-cost
suppliers. Some big corporations, including Rio Tinto, are outsourcing
routine legal tasks, fuelling rapid growth at outsourced providers like
Axiom, CPA Global and Pangea3, which was acquired by Thomson
Reuters. The outsourcing of legal services is likely to continue apace
impacting real estate requirements and strategy.
Real estate strategy to influence competitive position and
firm performance
The tough economic and operating conditions firms have faced since
the global financial crisis of 2008 have forced many businesses to
manage operating costs more actively. Law firms have clearly not been
immune to that pressure. The value of real estate and effective portfolio
management as a tool to manage costs and improve productivity,
has seen it move up the agenda for many companies. This report
highlights the challenges and opportunities facing law firms in the wide
range of international markets many now operate. As we move into
2013, a considered and forensic approach to real estate strategy and
decision making will become increasingly critical for law firms seeking
to outperform their competitors and maximise their own performance.

8. 8 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Law firm market map
Mosow
Amsterdam Germany
London City
Vancouver Toronto Montreal Paris Brussels Warsaw
Chicago Boston Milan
San Francisco Philadelphia New York Beijing
Madrid
Dallas Washington DC
Los Angeles Tokyo
Atlanta
Shanghai
Houston
Miami
Dubai
Hong Kong
Abu Dhabi
Singapore
Sydney
Melbourne

9. Jones Lang LaSalle Law Firm Perspective • Global • 2012 9
Global office property clock
Amsterdam
Paris CBD
Shanghai
London, Melbourne
Stuttgart Singapore
Moscow, Warsaw, Berlin,
Düsseldorf, Vancouver
Rental Growth Rents Hong Kong
Hamburg, Toronto Slowing Falling
Beijing
Cologne, San Francisco
Munich, Montréal
Houston
Rental Growth Rents
Accelerating Bottoming Out
Sydney Abu Dhabi
Dallas
Dubai
New York Washington DC
Madrid
Boston, Philadelphia Brussels
Tokyo, Los Angeles Frankfurt, Istanbul, Milan
Rome, Atlanta, Chicago, Miami
Americas
Asia Pacific
EMEA
The clock diagram illustrates where Jones Lang LaSalle estimates each position refers to prime face rental values. Markets with a “step pattern”
prime office market is within its individual rental cycle as at end of the of rental growth do not tend to follow conventional cycles and are likely
second quarter 2012. to move between the “hours” of 9 and 12 o’clock only, with 9 o’clock
representing a jump in rental levels following a period of stability.
Markets can move around the clock at different speeds and directions.
The diagram is a convenient method of comparing the relative position
of markets in their rental cycle. Their position is not necessarily
representative of investment or development market prospects. Their

10. 10 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Americas
Jones Land LaSalle’s law firm index selection. Finally, overall office leverage for tenants has little bearing
This index measures the environment for legal tenants within both a on the legal sector. High-scoring markets, for example, range from
given market and comparatively among markets throughout the United Washington, DC, which is moving further into tenant-favourable
States. Three component scores comprise the Jones Lang LaSalle territory, and New York, the tightest market nationally in terms
law firm index. These three main categories quantify the quality of of vacancy.
talent within a metro area and footprint of firms in the area (presence
in the market), pricing and concessions favourability across cities and Large presence Moderate presence Small presence
availability of space and leverage across markets. The index, which Index score:
takes into account 30 different metrics and data points among the three Flexible pricing Moderate pricing Limited pricing
major buckets, ranks markets that score highly as the most favourable 46.6
for firms to occupy, relocate to and/or expand. Large availability Moderate availability Limited availability
Major gateway markets tend to fall near the top of the list as a large Tier 1 markets: Tier 2 markets: Tier 3 markets:
catchment base and status as international gateways are key factors • Law firm friendly • Somewhat law firm • Not law firm friendly
• Strong presence of law friendly • Small legal footprint
for firms deciding where to maintain offices. Overall trends factor into firms in metro area • Concentration of law compared to overall
the index as well: most markets are seeing stagnant to declining levels • Growing or stable legal firms, but not a key office market
of legal employment, both in overall volume and as a percentage of services employment user of office space • Declining legal
• Legal services • Stable or slightly services employment
office-using and total employment, as well as continued downsizing to comprises significant declining legal services in most cases
maximise efficiency. portion of office jobs employment • Legal services
• Variety of block • Legal services comprises a small
options and occupier- comprises an average fraction of office jobs
At the same time, cities with significant premiums for Class A and favourable leverage portion of office jobs • Limited block
Trophy space manage to outrank their peers, indicating that other • Block options exist, but availability and
not readily available landlord-favourable
factors are more at play in the minds of legal tenants for market leverage

11. Jones Lang LaSalle Law Firm Perspective • Global • 2012 11
Atlanta
Index score:
52.9
Moderate presence
Flexible pricing
8.4%
Percent of Class A market
10.0%
Percent of law firms comprising
Large availability occupied by law firms active tenants in the market
Locational preference: Law firms in Atlanta are located in the Central Business
District along the Peachtree corridor in A-plus tower space, especially
in Midtown. Some firms opt for Downtown for easy access to the city’s
18
Number of law firms occupying
22
Number of AmLaw 100 firms with
courthouses and government agencies, while to the north, Buckhead’s financial greater than 50,000 sq ft offices locally
district has also attracted some of Atlanta’s most visible firms.
2012 Law firm completed transactions
Law firm activity has been relatively quiet in 2012 after a year in which some of the
city’s biggest firms committed to relocating or renewing existing space. ‘Givebacks’ Alston Bird
1201 West Peachtree Street
of space seem to have stabilised, with many firms keeping the same footprint or
366,000 sq ft
even adding small amounts of space. There are no ‘big game hunters’ in the market
Relocation
on par with what was seen in 2010 and 2011. Activity has been concentrated in the
Buckhead and Midtown submarkets with a handful of renewals occurring Downtown. Paul Hastings
Conditions generally remain in favour of occupiers, and particularly for this highly 1170 Peachtree Street
sought-after tenant sector. 75,000 sq ft
Relocation
Nonetheless, large firms seeking premium high-floor Trophy space in Buckhead will
find options limited. Demand is likely to funnel towards Midtown given the Class A Bondurant Mixson Elmore
vacancies that remain elevated there. Overall, law firm growth appears to be neutral 1201 West Peachtree Street
in Atlanta. 35,000 sq ft
Renewal with expansion
Active Law Firm Requirements in the market (sq ft)
Bryan Cave 90,000
Hunton Williams 70,000
Burr Forman 40,000
OUTLOOK
Top challenges for law firms
• Particularly in Buckhead, there is limited availability of large contiguous blocks
PRICING AND incentives of premium space in the Trophy towers, which will cause pricing conditions to
tighten sooner than other urban submarkets.
Overall
• Space options are further limited for law firms unwilling to relocate into buildings
Average Class A asking rent $25.10 already occupied by competing legal groups.
% annual change in Class A asking rent 2.2%
Top opportunities for law firms
Average % rent discount for negotiated rent 4.3% • Midtown, Atlanta’s traditional legal corridor, still has plenty of choices for top-tier
Average % rent premium for Trophy space 12.0% blocks of space, and thus landlords remain generally aggressive on
concessions here.
Average % rent discount for sublease space 24.0% • One of the most highly sought-after tenant sectors, law firms can capitalise on
Average annual escalation or bump 2.8% market conditions that overall, across the region, remain tenant-favourable as
owners fight to lure tenants.
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $54.00/$23.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 12/4 Landlord-favourable market

12. 12 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Boston
Index score:
51.3
Large presence
Moderate pricing
20.0% 16.3%
Percent of Class A market Percent of law firms comprising
Moderate availability occupied by law firms active tenants in the market
Locational preference: The city’s premier law firms occupy space at the most
prestigious office towers in Boston’s Back Bay, Financial and Seaport Districts.
Over the course of the past year, some law firms that have been traditionally
33
Number of law firms occupying
29Number of AmLaw 100 firms with
greater than 50,000 sq ft offices locally
located in the suburbs or Cambridge have chosen to move to the
Seaport District.
2012 Law firm completed transactions
It was a rather quiet year for the legal services industry in the Boston area. With
Mintz Levin
limited large lease expirations and the volatility in the greater economy, rightsizing
One Financial Center
was still a trend for those firms transacting. While some law firms have cut
245,000 sq ft
headcount over the past few years, many are realising their current spaces are Renewal
not as efficient as they could be. Gone are the days where large law libraries are
needed. Law firms are now looking towards technology to provide greater workplace Pepper Hamilton
solutions and this is reducing space needs by close to 20.0 percent in many cases. 125 High Street
With the high cost to fit-out space versus the amount landlords will contribute in 42,105 sq ft
tenant improvement allowances, law firms are faced with the economic challenge of Renewal with expansion
obsolete work space or increased capital expenditures to make a change.
Collora
Boston still remains a core real estate market and a market that many national law 100 High Street
firms continue to add a presence to. Comprising approximately 20.0 percent of the 18,698 sq ft
Relocation
Class A market, along with just over 16.0 percent of active tenants in the market, law
firms will still play a significant role in real estate activity this year and their decisions
will continue to shape the future of ever-changing occupier trends.
Active Law Firm Requirements in the market (sq ft)
Goodwin Procter 360,000
Goulston Storrs 140,000
Riemer Braunstein 60,000
OUTLOOK
Top challenges for law firms
• Firms in obsolete space face economic challenges due to a jump in rents for
PRICING AND incentives quality, efficient footprints.
• Premier large blocks of space are dwindling.
Overall
Average Class A asking rent $52.24
% annual change in Class A asking rent 6.7%
Top opportunities for law firms
Average % rent discount for negotiated rent 10.0% • Tenants still have a small window of opportunity to find real value in CBD low and
Average % rent premium for Trophy space 22.0% mid-rise space options.
• Larger, creditworthy firms can partake in potential build-to-suit opportunities in the
Average % rent discount for sublease space 35.0% developing Seaport District.
Average annual escalation or bump 2.0%
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $60.00/$35.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 5/2 Landlord-favourable market

13. Jones Lang LaSalle Law Firm Perspective • Global • 2012 13
Chicago
Index score:
58.4
Large presence
Moderate pricing
16.5% 20.0%
Percent of Class A market Percent of law firms comprising
Large availability occupied by law firms active tenants in the market
Locational preference: The majority of Chicago’s law firm tenants are located in
the West Loop and Central Loop submarkets. However, two new office towers
in River North have attracted law firms north of the river.
54
Number of law firms occupying
36Number of AmLaw 100 firms with
greater than 50,000 sq ft offices locally
For many firms, economic realities have fundamentally changed the legal industry
in what seems to be a permanent way. Lower and more competitive fee structures 2012 Law firm completed transactions
have affected margins, causing firms to re-examine all expenses including real
Foley
estate. In addition, firms with second-generation or older space are finding that
321 N Clark Street
it is no longer conducive to how they practise law. The firms that have made the
173,000 sq ft
commitment to build modern space are benefitting from the investment, but there Renewal with contraction
are significant capital barriers that prevent others from doing the same.
Latham Watkins
The Chicago market remains largely tenant favourable; however indicators are 330 N Wabash Avenue
showing early signs of the environment trending towards more neutral conditions. 137,000 sq ft
The exception to this is large users, including many law firms, which have dealt with Relocation
a dearth of large block options for some time and are already feeling the impact of
a leverage shift. Though several developers have plans to break ground in the near Perkins Coie
future, delivery of a new building is still several years away. 131 S Dearborn Street
104,000 sq ft
Continued economic uncertainty, as well as merger and acquisition activity, have Renewal with expansion
left some decision-makers cautious when considering future space plans and how
to accommodate the seemingly inevitable fluctuations in office needs. No matter the
size of the firm, negotiating flexible lease terms will be paramount to law firms Active Law Firm Requirements in the market (sq ft)
going forward. McDermott 250,000
DLA Piper 225,000
SNR Denton 125,000
OUTLOOK
Top challenges for law firms
• Large tenants are beginning to feel the effects of a tightening big block market,
PRICING AND incentives resulting in a shift in leverage in favour of landlords.
• The field of viable options for large users will continue to narrow in the coming
Overall
years as new development is four to five years away from delivery.
Average Class A asking rent $35.87
% annual change in Class A asking rent 8.0%
Top opportunities for law firms
Average % rent discount for negotiated rent 5.0% • Small- and mid-sized law firms still have an abundance of options in the market,
Average % rent premium for Trophy space 34.0% allowing them to more easily secure transactions that reduce operating costs.
• An increasing number of law firms are considering aggressive space standards,
Average % rent discount for sublease space 30.0% including universal office sizes for attorneys, which along with several other
Average annual escalation or bump 2.5% efficiency initiatives, has helped firms give back approximately 17.0 percent of
space when they relocate locally.
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $65.00/$45.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 9/5 Landlord-favourable market

14. 14 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Dallas
Index score:
53.0
Large presence
Flexible pricing
14.0% 5.0%
Percent of Class A market Percent of law firms comprising
Large availability occupied by law firms active tenants in the market
Locational preference: Approximately 80.0 percent of law firms are located in
the Dallas CBD and Uptown submarkets, with some additional firms located in
Preston Center, N Central Expressway and Far North Dallas.
23
Number of law firms occupying
19Number of AmLaw 100 firms with
greater than 50,000 sq ft offices locally
In the next few years there will a great deal of churn in the law firm space as many
firms have leases expiring in the 2013 to 2016 time frame. Typically firms are 2012 Law firm completed transactions
located in second-generation Class A buildings in the Dallas CBD and will need to
make the decision to renew at the older, less desirable locations or move to newer, Baron Budd
3102 Oak Lawn Avenue
more expensive locations (i.e. Uptown). This next wave of lease expirations in 2013
47,030 sq ft
already has several of these firms actively pursuing spaces in the market.
Renewal with expansion
There is a great deal of churn anticipated over the next few years with law firms
Hallett Perrin
in older spaces more likely to move (buildings like Lincoln Plaza, Trammell Crow 1445 Ross Avenue
Center, 2100 Ross, and Fountain Place are expected to benefit), while law firms in 23,427 sq ft
more modern space are more likely to renew. Relocation
New construction in Uptown is an attractive draw, but the economics of Class A Jackson Lewis
space in the CBD will win out in many cases, where rents are 30.0 to 40.0 500 North Akard Street
percent lower. 19,647 sq ft
Relocation
Active Law Firm Requirements in the market (sq ft)
Locke Lord 180,000
Jones Day 140,000
Jackson Walker 120,000
OUTLOOK
Top challenges for law firms
• The overall market has shifted from strongly tenant-favourable to more neutral
PRICING AND incentives conditions and net effective rents are rising, especially in Uptown.
• Limited new construction over the next few years will force law firms with near-
Overall
term lease expirations to renew in place or consider second-generation space.
Average Class A asking rent $21.25 • Financing constraints for new development will push construction levels below
historic norms.
% annual change in Class A asking rent 1.5%
Top opportunities for law firms
Average % rent discount for negotiated rent 12.0% • An abundance of full-floor or smaller blocks of space remain available for
Average % rent premium for Trophy space 30.0% smaller firms.
• One or two new construction projects may begin construction in the intermediate
Average % rent discount for sublease space 40.0% term, which could deliver in the next 24 to 30 months.
Average annual escalation or bump 2.5% • The increase in institutional ownership in the CBD makes existing properties
more attractive to law firms.
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $45.00/$20.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 12/0 Landlord-favourable market

15. Jones Lang LaSalle Law Firm Perspective • Global • 2012 15
Houston
Index score:
49.8
Large presence
Moderate pricing
15.0% 2.0%
Percent of Class A market Percent of law firms comprising
Large availability occupied by law firms active tenants in the market
Locational preference: The majority of law firms are located in the CBD, Galleria and
Greenway Plaza submarkets. Firms tend to prefer Trophy or Class A space in close
proximity to energy clients, as well as those buildings near the CBD courthouse with
28
Number of law firms occupying
44Number of AmLaw 100 firms with
marketable and well-known addresses. Due to the current scarcity of large blocks greater than 50,000 sq ft offices locally
of available space in the preferred submarkets, as well as the recent shift of new
construction and clients to the West Houston submarkets, law firms will soon be 2012 Law firm completed transactions
forced to expand their search for space towards these suburban areas.
Morgan Lewis
1000 Louisiana Street
Houston’s status as a global energy leader has enabled a large influx of law firms to
89,518 sq ft
locate in Houston and the CBD. Centrally located near the Houston City Hall and city
Renewal
and county court houses, the CBD attracts and retains boutique law firms specialising
in commercial and global energy practice litigation. The CBD remains Houston’s Crain Caton James
predominant location for law firm tenants, with over 4.4 million square feet being 1401 McKinney Street
occupied by notable tenants such as Vinson Elkins, Fulbright Jaworski and Baker 29,558 sq ft
Botts, among many others. Renewal
Law firm tenants in the market have remained active despite the recent economic Strasburger Price
slowdown. While we have recently seen several notable lease transactions, such as 909 Fannin Street
Morgan Lewis’ renewal of nearly 90,000 square feet at the iconic Wells Fargo Plaza 28,226 sq ft
(1000 Louisiana), the current trend among Houston law firms is to downsize and give Expansion
back space. For example, Locke Lord recently gave back four floors of space totaling
110,000 square feet at Chase Tower (600 Travis). Furthermore, it has been noted that
Locke Lord temporarily ceased the subsidisation of its associates’ parking; all a move to Active Law Firm Requirements in the market (sq ft)
cut costs in light of the national economic downturn.
Susman Godfrey 75,000
Law firm tenants continue to proceed in a cautiously optimistic manner, and cost control Coats Rose 60,000
seems to be the key objective of many firms in the area. However, we expect activity to
increase in the coming years as many law firm leases are set to expire over the next 24 BakerHostetler 50,000
to 36 months. This will result in an increased competition for quality, second-generation
space. While construction costs for commercial law firm build-outs are increasing, they
OUTLOOK
have held fairly steady over the past 12 months. For renovations of second-generation
office space, hard construction costs for upgraded law firm projects range from $40 per Top challenges for law firms
square foot on the low end to $80 per square foot on the higher end. • Large blocks of space available in choice submarkets (CBD, Greenway Plaza)
will continue to decline as no new developments are in the pipeline.
PRICING AND incentives • Landlords will continue to raise asking rents and scale back concession
Overall packages in prime Class A buildings as Houston’s economy continues to grow.
• In order to secure the most favourable rates on available space, law firms must
Average Class A asking rent $37.89 be willing to enter the market sooner despite future-term lease expirations.
% annual change in Class A asking rent 4.0%
Top opportunities for law firms
Average % rent discount for negotiated rent 5.0%
• Over the next 18 to 36 months, new Class A buildings are coming online in the
Average % rent premium for Trophy space 11.0% Galleria/West Loop and West Houston submarkets, offering firms the chance to
Average % rent discount for sublease space 20.0% move into higher-quality spaces with premier amenities.
• Energy-focused law firms will continue to see growth as a result of the booming
Average annual escalation or bump 1.8% energy market in Houston and in South Texas (Eagle Ford Shale Play).
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $40.00/$35.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 6/2 Landlord-favourable market

16. 16 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
Los Angeles
Index score:
61.9
Large presence
Flexible pricing
19.4% 23.0%
Percent of Class A market Percent of law firms comprising
Large availability occupied by law firms active tenants in the market
Locational preference: A majority of CBD law firms are located on Bunker Hill
and the Financial District. A large number of Westside legal tenants tend to
be concentrated in Century City and in the Water Garden in Santa Monica.
80
Number of law firms occupying
51
Number of AmLaw 100 firms with
greater than 50,000 sq ft offices locally
Downtown’s financial core could attract well-entrenched Bunker Hill law firms as
the area continues to benefit from retail-led revitalisation. The Westside market
could see a shift away from pricier submarkets such as Beverly Hills and Santa 2012 Law firm completed transactions
Monica, to Century City, which currently has a higher vacancy.
Lewis Brisbois Bisgaard Smith
221 N Figueroa Street
Los Angeles-based law firm tenants are once again thinking in terms of recruitment
160,415 sq ft
and seeking locations that appeal to their employee base. Law firm Morrison Renewal
Forester has relocated from Bunker Hill to the amenity-rich Financial District and
we anticipate other large downtown relocations in the next couple of quarters. We Alston Bird
also expect to see more long-term leases signed as companies gain increasing 333 S Hope Street
confidence in the regional economic outlook. 80,000 sq ft
Renewal
On the Westside, law firms choosing to locate in Santa Monica, which has the
lowest vacancy in the region, will face strong competition for Class A space. Morrison Foerster
Entertainment, technology and media companies have driven recent growth. On the 707 Wilshire Boulevard
other hand, Century City will continue to offer prime location opportunities for those 77,300 sq ft
Relocation
law firms wishing to trade up.
The Downtown market could see a dramatic change in ownership with one of its
largest owners placing its entire 7.3 million-square-foot portfolio, comprised of 37.0 Active Law Firm Requirements in the market (sq ft)
percent of the downtown Class A market, on the market for sale. Should an existing Sedgwick 80,000
large downtown landlord acquire the entire portfolio, the new ownership would
stand to gain substantial leverage, and we could see even greater pricing discipline Pepper Hamilton 25,000
exerted in the market. Consequently, the window of opportunity to lock in favourable Polsinelli Shughart 25,000
rates could be more limited.
OUTLOOK
Top challenges for law firms
• Potential disposition and sales of the MPG Portfolio to a local competitor could
PRICING AND incentives instill more market discipline and cause rents to increase.
• Low vacancy in Santa Monica could compel landlords to increase rents further.
Overall
• Cash-strapped owners remain unable to offer high tenant improvement
Average Class A asking rent $41.64 allowances.
% annual change in Class A asking rent 1.3%
Top opportunities for law firms
Average % rent discount for negotiated rent 10.0% • A large number of contiguous blocks of space available in Downtown and
Average % rent premium for Trophy space 17.3% Century City will provide firms with ongoing leverage.
• Los Angeles continues to offer law firms great value in terms of rent, relative to
Average % rent discount for sublease space 20.0% other gateway markets.
Average annual escalation or bump 3.5% • Now is a great opportunity to trade-up to Trophy assets or amenity-rich locations.
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $60.00/$30.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 10/4 Landlord-favourable market

17. Jones Lang LaSalle Law Firm Perspective • Global • 2012 17
Miami
Index score:
47.8
Large presence
Moderate pricing
17.0% 41.7%
Percent of Class A market Percent of law firms comprising
Moderate availability occupied by law firms active tenants in the market
Locational preference: Miami’s CBD is comprised of two submarkets, Brickell
and Downtown. 71.0 percent of Class A law firm users occupy space within
the Downtown sector of the urban core. Up to 600,000 square feet of demand
6Number of law firms occupying
20Number of AmLaw 100 firms with
greater than 50,000 sq ft offices locally
is expected from this industry sector. Of this, nearly 344,000 square feet are
actively touring market wide – 85.0 percent of which are CBD requirements.
Look to another 249,000 square feet not yet touring, but up for renewal – all of 2012 Law firm completed transactions
which will remain in the CBD.
Hogan Lovells
600 Brickell Avenue
Despite the dissolutions and defections among law partners and the bleak job
40,000 sq ft
market for new law school graduates, Miami’s legal tenants have still managed to Relocation
renew, expand and open new offices. Market-wide, Trophy product has captured
over 80.0 percent of all law firm transactions, with the bulk of occupancy on a Diaz Reus
square footage basis occurring in Downtown. On the ‘mega’ tour activity front 100 S.E. Second Street
(requirements at or above the 40,000-square-foot benchmark) over one-quarter or 14,500 sq ft
545,000 square feet of all Miami’s tours fell within this range. While several industry Renewal and expansion
sectors made up these tours, the largest in order of size were law firms.
Stroock
One of the first noted transactions to be publicly announced going into third quarter 200 S. Biscayne Boulevard
tracks along the same trend – demand for prime spaces within the CBD and some 14,500 sq ft
Renewal
of its largest occupiers emanating from the legal industry. During the first quarter,
Hogan Lovells (AmLaw’s sixth-ranked firm) signed a short-term lease for 21,000
square feet in Downtown at Florida’s largest Trophy asset (Southeast Financial
Active Law Firm Requirements in the market (sq ft)
Center). By third quarter, recent press coverage indicated a long-term commitment
in the CBD’s newest Trophy tower, Brickell World Plaza. The building, located in the Holland Knight 100,000
Brickell sector, will see Hogan occupy 40,000 square feet.
Gunster 25,000
The Ferraro Law Firm 20,000
OUTLOOK
Top challenges for law firms
• ‘View space’ for law firms remains limited even in some of the new developments
PRICING AND incentives that delivered vacant during the last cycle.
• Space properly sized to accommodate new criteria.
Overall
• Efficient use of space due to new technology (no more big libraries, mailrooms).
Average Class A asking rent $40.77
% annual change in Class A asking rent -2.3%
Top opportunities for law firms
Average % rent discount for negotiated rent 4.0% • The lease environment remains overall favourable, if not excellent, for
Average % rent premium for Trophy space 10.0% premium space.
• Net rents continue to be driven down due to oversupply via new development in
Average % rent discount for sublease space 11.5% the last cycle.
Average annual escalation or bump 3.0% • New buildings and upgrades from existing product offer high-end finishes,
increased amenities and efficiencies.
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $40.00/$35.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 7/7 Landlord-favourable market

18. 18 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
New York
Index score:
61.5
Large presence
Flexible pricing
11.7% 16.9%
Percent of Class A market Percent of law firms comprising
Large availability occupied by law firms active tenants in the market
Locational preference: The majority of law firms in New York are located in
the Midtown and Downtown submarkets. Specifically, firms gravitate to newer
Class A and Trophy buildings within the Financial District, Columbus Circle,
118
Number of law firms occupying
83
Number of AmLaw 100 firms with
Grand Central, Plaza District and Times Square. There is a migration of firms greater than 50,000 sq ft offices locally
moving to the west side of Midtown and Downtown. With large blocks of Class
A and Trophy space becoming available Downtown at a significant discount to 2012 Law firm completed transactions
Midtown rents, Downtown provides an attractive alternative for firms to relocate.
Many top firms, however, chose to remain in the Plaza District. Chadbourne Parke
1301 Avenue of the Americas
200,000 sq ft
Despite a handful of high-profile transactions this year, total occupancy in the legal
Relocation
services industry has been receding in Manhattan as many firms contract, both in
head count and square feet per employee. Year-to-date, law firm leasing activity Wilson Sonsini Goodrich Rosati
represents just 5.3 percent of total, compared to 17.0 percent in 2007. 1301 Avenue of the Americas
48,980 sq ft
Top New York law firms are facing flat to declining profits, as a result of a contraction Renewal
in overall business volume (in specific, dramatically reduced transaction activity on
Wall Street), increased competition, outsourcing of low margin work and insourcing, Akerman
with companies increasingly relying on in-house legal staff. Dewey LeBoeuf—in 666 Fifth Avenue
business for more than a century-filed for bankruptcy in early 2012 and vacated 48,166 sq ft
475,000 square feet at 1301 Avenue of the Americas. Chadbourne Parke recently Relocation
signed a direct lease to take 200,000 square feet of Dewey’s space. Chadbourne
will fully rebuild Dewey’s space to adopt new law firm standards and efficiencies.
Active Law Firm Requirements in the market (sq ft)
Many legal firms are opting to renew, often several years in advance, to lock-in White Case 400,000
current terms and avoid the upfront costs of relocation and existing asset write-
offs. Kaye Scholer, however, signed a letter of intent to take 260,000 square feet in Kaye Scholer 250,000
Boston Properties’ new development at 250 West 55th Street in what may prove to Mayer Brown 250,000
be the largest transaction of 2012. A bright spot in the industry has been the modest
rebound in MA activity and growth in the new media and technology industries,
which provides opportunities for firms that specialise in those fields. OUTLOOK
Top challenges for law firms
• Legal services has been one of the slowest industries to recover from the downturn,
PRICING AND incentives with employment still down 8.5 percent in Manhattan since the 2008 peak.
• Rising Trophy rents, coupled with lower profits, are forcing firms, which have
Overall
traditionally occupied the top end of the market, to consider more cost-
Average Class A asking rent $65.62 effective options.
% annual change in Class A asking rent 7.4% Top opportunities for law firms
• By becoming more efficient, law firms that have relocated have been able to
Average % rent discount for negotiated rent 15.0%
shed approximately 15 percent of their footprint.
Average % rent premium for Trophy space 20.7% • Even with decreased vacancy rates, viable options are available, particularly in
Average % rent discount for sublease space 19.3% Midtown West and Downtown, which have a significant amount of
new construction.
Average annual escalation or bump 1.7% • With the growth of the new media and technology industry, there is opportunity
New/Renewal (assuming 10-year term) for firms that specialise in those sectors.
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $51.69/$31.47 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 7/6 Landlord-favourable market

19. Jones Lang LaSalle Law Firm Perspective • Global • 2012 19
Philadelphia
Index score:
50.5
Large presence
Moderate pricing
20.3% 26.1%
Percent of Class A market Percent of law firms comprising
Moderate availability occupied by law firms active tenants in the market
Locational preference: The majority of Philadelphia’s law firms are located in
the CBD’s Market Street West submarket. This location provides easy access
to abundant amenities and immediate proximity to the city’s concentration
23
Number of law firms occupying
18Number of AmLaw 100 firms with
greater than 50,000 sq ft offices locally
of professional services companies. Despite the declined availability of
large contiguous blocks and rental rate increases in Market Street West, the
submarket will remain the core location for law firms. 2012 Law firm completed transactions
Morgan Lewis
Law firm activity spiked in 2012 as Market Street West’s largest law firms completed
1701 Market Street
transactions. In light of tightened Trophy conditions, large tenants have come
289,432 sq ft
to market two to three years ahead of expiration, finalising leasing decisions as Renewal
far out as 2015. As year-end 2011 approached, Reed Smith’s market-moving
115,000-square-foot lease at Three Logan Square created a window of opportunity Cozen O’Connor
for Cozen O’Connor to upgrade its space. The Philadelphia-based firm recently 1650 Market Street
signed a long-term lease to occupy Reed’s One Liberty vacated space upon its 200,000 sq ft
relocation. Morgan Lewis and Ballard Spahr also finalised leasing decisions Relocation
this year.
Ballard Spahr
While Morgan Lewis renewed in place, many of Philadelphia’s CBD law firms are 1735 Market Street
rightsizing existing footprints; by 13.0 percent on average. Ballard Spahr will shed 179,000 sq ft
Renewal with contraction
two floors of space at 1735 Market Street, and Reed Smith is decreasing its footprint
by more than 25.0 percent.
Accelerated law firm transaction volumes drove a year-on-year decline in sector Active Law Firm Requirements in the market (sq ft)
requirements by nearly 50.0 percent. Now, with 440,000 square feet of active firms Pepper Hamilton 220,000
in the market, the majority is comprised of small firms, less than 10,000 square
feet requirements. Finalised relocation decisions have decreased high-quality, Drinker Biddle 175,000
contiguous blocks of available space, pushing large requirements-focused on Harkins Cunningham 9,000
Trophy-to consider new proposed developments. Simultaneously, consolidations are
creating availabilities at Trophy assets, bringing opportunity to small- and mid-sized
firms. OUTLOOK
Top challenges for law firms
• Strong Trophy landlord leverage is driving increased rental rates.
PRICING AND incentives • With no new office development, large law firms will be faced with limited
contiguous blocks at high-quality assets.
Overall
• Landlords closely monitoring small- to mid-sized law firm credit.
Average Class A asking rent $27.92
% annual change in Class A asking rent 2.1%
Top opportunities for law firms
Average % rent discount for negotiated rent 10.0% • Market Street West’s occupancy-constrained, Class A properties are willing to do
Average % rent premium for Trophy space 21.3% aggressive deals.
• Trophy tenant consolidations have yielded new availabilities for small- to mid-
Average % rent discount for sublease space 10.3% sized users.
Average annual escalation or bump 2.5% • Class A availabilities are very conducive for half- to full-floor law firms.
New/Renewal (assuming 10-year term)
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $45.00/$22.50 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 8/4 Landlord-favourable market

20. 20 Law Firm Perspective • Global • 2012 Jones Lang LaSalle
San Francisco
Index score:
38.2
Large presence
Limited pricing
5.2%
Percent of Class A market
8.6%
Percent of law firms comprising
Moderate availability occupied by law firms active tenants in the market
Locational preference:The majority of law firms in San Francisco are located in
the North and South Financial Districts where premier Class A properties are
concentrated and where law firms can be in close proximity to other businesses
16
Number of law firms occupying
41
Number of AmLaw 100 firms with
and clients. The centre of San Francisco’s business district has shifted in recent greater than 50,000 sq ft offices locally
years towards the South Financial District as companies look to take advantage
of newer office buildings and closer proximity to multiple forms of public 2012 Law firm completed transactions
transportation. Additionally, redevelopment of the Transbay Terminal and the
future extension of the Caltrain rail line are drawing more companies to Lewis Brisbois Bisgaard Smith
this submarket. 333 Bush Street
52,000 sq ft
Relocation with contraction
Over the past four years, the legal industry in San Francisco has experienced
a significant decline in occupied space as law firms have been among some of Jackson Lewis
the most adversely affected companies during the recession. As a result, many 50 California Street
have shed hundreds of thousands of square feet in an effort to reduce costs and 18,878 sq ft
streamline business. Although many large deals have been signed in recent years, Relocation
most involved downsizing or renewing in place - entering the market simply because
of impending lease expirations. Mintz Levin
44 Montgomery Street
Today, however, there are a handful of firms in the market for expansion space, but 15,666 sq ft
rightsizing and creating a more efficient workplace continue to dominate leasing New deal to the market
activity in this industry.
Active Law Firm Requirements in the market (sq ft)
Coblentz Patch Duffy West 85,000
Gordon Rees 80,000
Fenwick West 60,000
OUTLOOK
Top challenges for law firms
• Large block availability is dwindling significantly with new supply still 6 to 18 months
PRICING AND incentives away from delivery.
• Law firms in the market for large blocks are facing stiff competition from technology
Overall
companies, which is the fastest growing industry in the market.
Average Class A asking rent $51.74 • Rents have increased significantly and continue to rise, placing pressure on tenants to
either act now or make shorter-term deals to holdover.
% annual change in Class A asking rent 17.5%
Top opportunities for law firms
Average % rent discount for negotiated rent 5.0% • Many landlords have begun to build out ‘open’ workspace to appeal to tech tenants;
Average % rent premium for Trophy space 24.3% these spaces could work for law firms seeking efficiencies.
• New developments in the South Financial District will open up opportunities for tenants
Average % rent discount for sublease space 32.0%
to relocate from the North Financial District into newer, more efficient space.
Average annual escalation or bump 3.0% • Popularity of the South Financial District and South of Market among tech firms has left
New/Renewal (assuming 10-year term) more large blocks in the North Financial District, where many law firms occupy space.
Tenant-favourable market
Class A tenant improvement allowance ($ price per sq ft) $50.00/$25.00 2012 2013 2014 2015 2016 Neutral market
Class A free rent (months) 4/2 Landlord-favourable market