Cushman & Wakefield: U.S. Legal Sector Leasing Hits Record 7.3 Million Square Feet in Q2 2026 as Law Firms Expand Footprints

Cushman & Wakefield’s Q2 Legal Sector Leasing Trends Report finds first-half legal leasing up 17% year over year as larger transactions and expansions drive activity

NEW YORK--(BUSINESS WIRE)--U.S. legal sector leasing reached a quarterly record of 7.3 million square feet (sf) in the second quarter of 2026, surpassing the previous quarterly high by 23%, according to a new report from Cushman & Wakefield. First-half legal leasing reached nearly 12.2 million sf, up 17% year over year, as law firm demand continued to contribute to the recovery in U.S. office leasing.

“The legal sector is showing a clear preference for larger footprints, with expansion activity reaching its highest share since 2019,” said David Smith, Head of Americas Insights, Global Think Tank at Cushman & Wakefield. “Law firms’ largely office-centric work models combined with continued expansion activity both point to sustained demand from firms evaluating how their real estate needs are evolving.”

Larger Transactions Fuel Record Activity

Large transactions played an outsized role in the second quarter. Half of the 10 largest legal leases recorded over the past year were signed in Q2 2026, while 15 of the 21 legal leases exceeding 75,000 sf signed year to date were completed during the second quarter. The sector is on pace to record 24% more deals in this size category than in 2025.

Activity also accelerated in the 25,000- to 75,000-sf segment, with 85 leases completed through the first half of 2026, positioning the sector to exceed last year's record volume in this range. Nine of the 10 largest legal leases signed in 2026 involved AmLaw 100 firms, including six firms ranked among the top 25.

Law firms also remained focused on growth. Expansions accounted for 43% of legal leases signed during the first half of 2026, the highest share since 2019, while downsizing represented just one-fifth of transactions, continuing its downward trend.

Major Markets Lead Strong Quarter

The 10 major U.S. legal markets accounted for 69% of Q2 leasing activity, led by New York City, Chicago and the D.C. Metro. Those three markets accounted for nine of the 10 largest leases signed during the quarter, while New York City and Chicago each posted their strongest quarters for legal leasing on record.

New York City led all markets with 2.2 million sf of legal leasing in Q2, representing 30% of total U.S. legal leasing volume. Activity included a 916,000-sf relocation lease signed by one of the nation’s largest law firms. Chicago recorded more than 890,000 sf of legal leasing in Q2 and nearly 1.5 million sf through the first half of 2026. With two quarters remaining, Chicago’s year-to-date activity had already surpassed the market’s full-year 2025 total by 91%.

Across the 10 major legal markets, law firms accounted for 14% of total office leasing in Q2. Beyond the major legal hubs, nine additional markets recorded more than 100,000 sf of legal leasing in Q2, led by Minneapolis with 274,000 sf, Salt Lake City with 145,000 sf and Pittsburgh with 127,000 sf.

“Law firms remain among the clearest sources of office demand nationally,” added Smith. “The largest legal markets continue to attract significant commitments, but activity is also extending across a broader range of U.S. markets. That geographic breadth is an encouraging sign for the sector as we look toward the second half of the year.”

The full report can be accessed here.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.