Singapore ranks fourth in Apac for office-leasing activity by legal firms in H1: Savills

Singapore has come in fourth in the Asia-Pacific region for office-leasing activity by legal firms in the first half of 2024, indicated a report released by property consultancy Savills on Tuesday (Sep 10).

This comes as legal firms in the Republic have been relatively active in a “fairly benign” leasing market, said executive director of commercial at Savills Singapore Ashley Swan.

In Singapore, some 70,000 square feet (sq ft) of office space was leased to firms in H1. This is about 1.6 per cent of the total 4.3 million sq ft of space across 15 legal markets tracked by Savills.

Swan said that the consultancy has also observed some firms, who have moved into new office spaces, undertaking a new working style to attract and retain talents. This includes changing the design of offices, providing hybrid working patterns and adopting artificial intelligence in their workspaces.

Within the region, Shanghai, Beijing and Hong Kong took the top three places for office leasing activity in the legal sector.

Savills noted that international firms that expanded into China in recent years have either announced office closures this year or renewed their space at smaller square footage in the first half.

“Concerns for global legal occupiers include a prolonged capital market downturn in China, shifting business environment, ongoing geopolitical tensions, and increasing competition for work from government-preferred law firms,” it added.

But while those firms are reducing their physical footprint in China, the country’s top legal practices are relocating to larger cities like Shanghai to grow their market share.

In H1, domestic firms accounted for more than half of Shanghai’s office leasing volumes, which amounted to 331,200 sq ft. In total, Chinese cities accounted for 13.3 per cent of overall H1 legal leasing activity across the markets being tracked.

Additionally, Chinese firms are also expanding in European markets, mainly serving China-based clients and working for fees that are materially lower than their western counterparts, said Savills.

Some 40 per cent of legal firms in the Europe, the Middle East and Africa region have expanded office space in H1, added the consultancy.

Top cities include Paris and Brussels as they host national and international political centres, thus attracting top legal practices.

Moreover, London also attracts an influx of US firms, which have dominated recent take-up activity and led to salary increases in the sector.

On a global scale, US cities accounted for 69 per cent of overall H1 legal leasing activity, buoyed by legal offices having lower occupancy density and requiring more space.

New York took first place for office leasing activity by legal firms in H1. It accounted for a third of global rental activity, or over 1.4 million sq ft of space.

Source: Business Times © SPH Media Limited. Permission required for reproduction.

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