Law Firms Give Thought
To Office-Design Issues

Law firms are getting a new look.

As law firms focus more on the bottom line and adjust to changes in culture, image and work functions, many of them are rethinking their office design as well. They're scaling back offices, the number of secretarial and paralegal cubicles, libraries, computer-servers and data-storage areas. Meanwhile, they are adding more communal spaces, from coffee bars to visitor lounges.

"It's not just about reducing costs, but [also] efficiency and working together and addressing the culture and even the image" of the firm, says Frank Mann, who heads up the law-firm advisory board of Chicago-based real-estate services firm Jones Lang LaSalle Inc.

Ornate libraries and even grandiose internal staircases, once created "to make a statement as a sign of prestige, aren't being built anymore," as firms try to avoid projecting a flamboyant image that may convey to clients that they are overpaying for a firm's services, says Mr. Mann. "Now, a lot of law firms want teaming rooms where people from different practice groups can work together." The move not only grows out of firms' efforts to cross-sell services that require lawyers from different practice areas to work together, but also reflects the desire to integrate the four generations now working at firms: retiring partners, baby boomers, and generations X and Y.

One result of all this is that the legal-services industry is one of the most active tenants this year in markets from New York to San Francisco as firms move up to bigger offices or consolidate space in a new location. In fact, law firms are behind the bulk of new lease deals signed in New York in the first half of the year, according to real-estate brokerage firm Colliers ABR Inc. Robert Sammons, Colliers ABR's research director, says 27 law firms are currently looking for 2.3 million square feet of space in Manhattan.

Controlling Costs

For Sedgwick, Detert, Moran & Arnold LLP, a 20% reduction in the firm's overall occupancy cost is the reason behind its new flexible design plan, according to Bruce Wold, a senior partner who coordinates all of the law firm's real estate nationwide. The plan, which was most recently implemented in Chicago where the firm moved to a new location, includes substantially reducing the space dedicated to libraries and computer servers, the "gargantuan-size offices that serve no purpose other than satisfying people's egos," and the number of cubicles for assistants since fewer of them are assigned to more attorneys, says Mr. Wold.

In turn, the firm is adding what it calls teaming areas, where employees can gather for casual meetings with colleagues or simply relax in a comfortable couch or chair. It's also dedicating more space to case rooms, or so-called war rooms. Every fifth office space is set up as a teaming room for employees, but can be easily converted into an office when needed. The war rooms, where files and other documents are housed and used for the duration of a case, can be expanded or reduced in size simply by moving around wall panels and furniture.

The new design will allow the firm to use less space and save money. Sedgwick Detert is considering paying a $2.5 million fee to terminate its existing lease in Los Angeles, which doesn't expire until 2009, so it can move to a new location and retool its space. "Even after paying the penalty, we can save ourselves millions of dollars over the next several years," says Mr. Wold.

With design and construction budgets tightening for many firms, a popular move is the consolidation of conference rooms into one centralized area easily served by a concierge, who oversees booking and managing the space.

A centralized location also means the firm has to set up only one catering kitchen, one business center for copying or faxing documents, one set of audio and visual equipment and one storage area for visitors' luggage. What's more, it enables firms to create a single entry point for clients, opposing counsel and other visitors. Previously, many firms had reception areas on different floors.

And with a single reception area and visitors lounges, another common feature, firms can better control security and confidentiality in their space, and can concentrate more-expensive design finishes in those public areas, says Chris Murray, one of the leaders of the law-practice group at Gensler Architecture, Design & Planning Worldwide based in San Francisco.

Encouraging Collegiality

For many other law firms, the goal is to create gathering spots that facilitate communication. "They're looking for opportunities to encourage collegiality and chance encounters" between lawyers, says Barbara Dunn, a vice president at Gensler.

Paul, Hastings, Janofsky & Walker LLP added coffee bars, complete with casual seating and television sets, to its new offices in Los Angeles and in New York, which it moved into last year. The Los Angeles-based firm acquired New York-based Battle Fowler LLP three years ago. "It was important for the synergy of the firm to integrate the two groups," and the coffee bar was "a way to bring the two groups together," says Patrick Ramsey, a Paul Hastings partner who is in charge of the firm's real estate.

By next June, Clifford Chance US LLP will consolidate its three offices in New York into 14 floors in a single building owned by Deutsche Bank. The firm's new space, which will be slightly larger, will include a cafeteria that can seat up to 200 people. The firm plans to make it much like a living room, where employees can meet with their peers, relax, watch television or even gather for cocktail parties.

These days, a law firm's space "is not so much a matter of trying to impress clients, but creating a work environment that really encourages and supports building collegiality and communication and teamwork," says Alan Gosule, chairman of Clifford Chance's real-estate department, who is overseeing the design of the new office.

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