Colliers Law Firm Practice Group PREPARED BY: Steve Levitas, Principal Bob Chodos, Principal 2014 LEGAL WORKPLACE TRENDS
Jul 17, 2015
Colliers Law Firm Practice Group
PREPARED BY:
Steve Levitas, Principal
Bob Chodos, Principal
2014 LEGAL WORKPLACE TRENDS
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LEGAL WORKPLACE TRENDS
WORKPLACE TRENDS
Colliers has been successfully implementing the latest workplace trends and strategies for many of its law firm
clients around the world. Colliers’ partners with our clients to develop and implement workplace strategies that
support the mission of the business, increasing productivity, positively impacting recruiting and retention, leading
to greater profits for the firm. The general trend for all law firm occupiers is planning for a higher employee
density in their space utilization which results in a compression in the overall amount of space the firm occupies.
To achieve this goal law firms are employing innovative planning techniques and strategies which are described
in detail in this section. Colliers mission on every law firm project is to help our client determine which of these
innovative trends are appropriate for the firm’s culture and then develop a strategy which can be implemented to
achieve an optimal real estate solution.
OCCUPIER STRATEGIES
Law firms today are becoming increasingly focused on developing strategies to reduce overhead costs, one of
the most significant of which is occupancy expense, while improving their work place environment. When
deployed, these alternative workplace strategies can have significant cost/savings implications from both capital
expenditure and space utilization perspectives. They can also create distinct cultural challenges to a company’s
operation, which need to be carefully considered.
Some of the more progressive workplace strategies that corporate occupiers are implementing today to increase
space utilization and improve their workplace performance include; open planning for all or most employees
with use of dense benching workstations, access to natural light for all employees, interior offices or
team rooms with glass fronts, free addressing and un-assigned workspace made possible by technology
that permits un-tethering from phones and desktop computers, meeting areas and conference rooms
dispersed throughout the space in much higher ratios, hoteling and universal offices. Some of these
trends would be a fairly radical change for a law firm workplace that is typically perimeter private offices with
limited access to natural light into the interior zones of a floor plate, but the more progressive firms are
embracing some of these techniques to reduce their square foot per Attorney ratios cutting costs but also
improving the quality of the workplace environment for attorneys and support staff.
Balancing these “current state vs. future state” concepts resides at the core of the creation of a functional real
estate strategic plan.
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WORKPLACE PERFORMANCE
A key differentiator for the Colliers team is our focus in the area of workplace performance and what really goes
on “in” the real estate, rather than focusing on just traditional real estate transaction metrics, such as occupancy
and capital expenditure costs. Today’s workplace is experiencing massive change, thanks to demographic shifts
in the workforce and advances in technology. The hierarchy-led philosophy created by the Baby Boomer
generation led to a more traditional, silo-based and immobile work space environment. That is rapidly changing
to a future state which is focused on technology, mobility, collaboration, culture and brand, driving space design
and utilization. Progressive companies are asking themselves a key question related to their office space:
“What do you need in the workplace today to leverage these trends and build for the next
generation workforce?”
Given the capital-intensive nature of creating space, this key question is driving a lot of discussion at companies
across the U.S. and around the world. In Europe and Asia, most companies have already embraced and
adopted many of the more progressive occupancy strategies, as custom and high-rent structures have forced
these issues to the forefront.
Colliers’ 80/20
Colliers 80/20 approach is focused on the early stages of the strategy development process at the front end of
the real estate selection process. The goal up front is to establish a team and mindset that is targeting well-
crafted real estate solutions and can positively impact a firm’s 80% revenue engine; e.g. the people and
business processes residing within the office environment, the technology those people use that allows them to
be mobile and collaborative, the brand of the firm and the message the space sends to the firm’s employees,
clients, and visitors about its culture.
THE NEW WORKPLACE: The 80/20 Approach
In addition to cost this project is about:
Real Estate
7.0%
Information
Technology
8.0%
Revenue Engine
80.0%
Operations
5.0%>Productivity
>Knowledge-sharing
>Recruiting/Retention
>Generational shift
>Demographics
People
Brand>The “Blink” factor
>Real estate as brand icon
>Corporate Messaging/Culture
>Work anytime, anywhere
>Cloud – WiFi – Mobile
>Social Media
Technology
>Now vs Future
>Business cycles change often
>Real estate not agile or flexible
Risk
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THE NEW WORKPLACE: Critical Trends
The last of these trends is the one that catches the eye of every law firm’s executive director, COO and CFO that
we work with. They continually ask us:
“How do we maximize the use of these offices that I see empty so often, as our employees are
out of the office often meeting with clients on the road or working remotely much more frequently
these days?”
To maximize the use of this inventory of potentially available seats engenders a number of deeper questions that
companies have historically avoided. The idea that a employee might not actually have a fully-assigned seat
within the office at all times can have an impact on the culture of company. However, these are the strategies
that are being deployed by forward-thinking corporations today to leverage their real estate to and improve
employee productivity.
What is driving the need for change in today’s workplace? The changing demographics employee pool in the workplace is the primary driver. The following charts tell the story best.
CRITICAL TRENDS
SHAPING CRE &
WORKPLACE
SPACE REDUCTION
5
75% OF APPS WILL BE IN THE CLOUD (2015)
100b+ GLOBAL MOBILE DEVICES
50% WORKFORCE – Y MILLENIALS (2016 - 2018)
80% WORK HIGHLY COLLABORATIVE (2015)
40% OF WORKSPACE IS OCCUPIED (today)
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THE NEW WORKPLACE: Demographic Transformation
The majority of Baby Boomers are expected to retire by 2016 – 2020.
Millennials will become a more dominant workgroup during this transition.
BOOMER1946 - 1965
GENERATION X1965 - 1980
MILLENNIALS 1980 - 2000
TRAIT Optimistic Skepticism Empowered
LEADERSHIP STYLE Consensus Consensus Non-hierarchical
CAREERCompetitive,
change agents
Resourceful, self
manage
Cutting-edge vs
experience
VALUE Opportunity FreedomDiversity and social
responsibility
REWARDSMoney, title and
perks
Transferable benefits,
flexibility and balance
High pay, interesting
work and
work/life balance
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WORKPLACE TRENDS
• Space reduction of 15-32% for AMLaw 200 firms that are re-working their space
• 1:4 Admin to Attorney Ratios
• Many firms moving to single size offices
• Hoteling is not widely used other than for Retired Partners and Of-Counsel’s but dedicated offices are not going away any anytime in the near future
• Firms are exploring putting first and second year attorneys in workstations.
• Target Attorney per SF Ratios are 650 SF/Atty or below
• 40 – 50% of office space is occupied at any given time
• Mobility is about options – not giving up desks
• Workplace needs to facilitate untethering from hardline phones and desktop PC’s – wireless environments
Outsourcing:
• 48% outsource E-Discovery
• 35% outsource document review
• 18% outsource legal research
• 8% are offshoring some or all of these functions
• Many firms are near-shoring support functions, (marketing, accounting, HR, etc.)
• Hoteling not widely used by most firms
• Telecommuting – used at varying levels for attorneys – some pilot Programs for staff
• Virtual support – Admin’s from different offices support large numbers of attorneys virtually, 3:50 in one example
• Online knowledge-sharing platforms such as SharePoint, Firmex, Xerdict and Mavenlink becoming more
common
• Many clients requesting E-Billing, software to track expenses - Chrome River
• Document scanning and management systems
• Expanding use of non-attorney Project Managers to run processes for teams working on cases or deals, Six Sigma approach
Space Utilization Strategies today center on:
• Universal office vs. multiple office standards
• Bringing daylight off the perimeter to interior zones – glass front offices
• Use of group zones for war and work room teams
• Using furniture and demountable wall systems to create flexibility
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UNDERSTANDING THE POSSIBILITIES
Contemporary and Modern
Below are two examples of what was a typical corporate or professional services environment showing the
prevalent use of glass on the exterior office fronts bringing much-desired natural light into the interior of the
space. The use of demountable wall partitions on both the exterior and interior zones allow offices and
conference/team rooms to be reconfigured as the company’s needs change creating flexibility in otherwise
inflexible real estate
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New Workplace
The examples below show the “open” planning design concept that is becoming the standard for many
coporations in America. The open plan concept caters to the Millenial worker and fosters collaboration,
unthethering and mobility in the work place. The 2nd
image shows the bench seating workstations that have
become prevalent in the design for many open plan users and has allowed space requirements to decrease
dramatically versus the traditional workstation.
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Amenity Spaces
Cafeteria and food service areas are also being widely used by many law firms to bring their employees together
to create a collaborative environment and for informal and formal meeting spaces. If the employees tend to
cluster around food service areas, that environment should foster collaboration and idea sharing.
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Amenity Spaces – Fitness Center
The majority of us spend a large portion of our lives at work, many of us sitting sedentary behind a desk. Many
firms are promoting fitness at work and encouraging coworkers to utilize on-site facilities to stay healthy. Firms
with Corporate Wellness Programs also get the added benefit of lower health insurance premiums.
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Conferencing
The use of glass to bring light and air into the conference areas and informal meeting areas dispersed
throughout the space are designed trends that are being widely deployed. The technology is moving toward
wireless environments with the exceptions of video conferencing and telepresence rooms. On-line reservation
systems for the conference rooms allow employees to reserve rooms quickly and efficiently. Larger rooms that
can be used to hold ”all-hands” meetings or training sessions and then be divided into smaller rooms with
moveable partitions are also popular design features.
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CONTACT DETAILS
STEVE LEVITAS BOB CHODOS
Principal Principal
Chairman – Law Firm Service Group Chairman – Occupier Advisors
Colliers International Colliers International
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