Law Firm Benchmarking Results

Phoenix Law Firms Space Utilization and Benchmarking

2231 E CAMELBACK ROAD #209 PHOENIX, AZ 85016 • (602) 783-1610 • WWW.SAVILLS-STUDLEY.COM

Pressing Issues in Law Firm Real Estate Reducing Costs

81%

Location

48%

45%

Parking

Size of Footprint

35%

32%

Image

Visibility/Signage

29%

Attracting/Retaining Talent

26%

Succession Planning

23%

Building Class

23%

Building Amenities

23%

Walkability

Co-Tenants

13%

10%

Firm Size & Space Allocation Square Footage 1,200 SF

10,000 SF

23,149 SF

Smallest

Median

Mean

80,640 SF Largest

Attorney Count 2

12

22

Smallest

Median

Mean

95 Largest

Square Footage Per Attorney 264 SF

856 SF

906 SF

Smallest

Median

Mean

1,971 SF Largest

Five-Year Plan: Firm Footprint

16% Expand 39% Shrink 45% Maintain

Attorneys per Assistant

3:1 is the average ratio of attorneys to assistants

65% of respondents predict this ratio to rise

Attorney Office Sizes

94% of respondents have varying attorney office sizes

70% of respondents are considering universal-sized offices

Physical Storage Space

100% 73% of respondents have seen a change in physical storage space

of those respondents have seen a decrease or elimination of physical storage space

Universal-Sized Offices Where the footprint of all attorney offices is the same, making no distinction for rank or tenure.

55% Not in place but may consider in the future 19% Would not consider 16% Not in place but definitely plan to implement 10% Currently in place

Dispersed Collaboration Areas Dedicated collaboration areas throughout the space to allow collaboration (vs. centralized, client-only conference facilities).

35% Not in place but may consider in the future 29% Currently in place 23% Not in place but definitely plan to implement 13% Would not consider

Social Spaces Non-traditional gathering spaces for conferencing, socializing and collaboration.

Typically less formal than traditional conference rooms.

42% Not in place but may consider in the future 26% Currently in place 16% Not in place but definitely plan to implement 16% Would not consider

Repurposing/Replacing of Traditional Library Spaces Average law firm libraries have grown considerably smaller or have even been eliminated. The remaining libraries, if any, are typically smaller and more open and can serve dual purpose of collaborative/social space.

52% We have eliminated our library entirely 19% Not repurposed but definitely plan to implement 19% Not repurposed may consider in the future 10% Would not consider repurposing

Off-Site Back-Office Functions Outsourcing support functions such as human resources, recruiting, finance, client relations, litigation support, IT and research to secondary, less expensive locations.

45% Would not consider 32% Currently in place 19% Not in place but may consider in the future 3% Not in place but definitely plan to implement

Access to Natural Light for Interior Space Funneling natural light to interior space, not just to perimeter attorney offices.

58% Not in place but may consider in the future 16% Not in place but definitely plan to implement 13% Currently in place 13% Would not consider

Wellness Rooms/Areas With a growing focus on wellness in many corporate and legal environments, some firms are looking to build wellness-oriented features into their real estate plans.

55% Not in place but may consider in the future 29% Currently in place 10% Not in place but definitely plan to implement 6% Would not consider

Hospitality Spaces But infusing a space with hospitality-inspired touches, firms are able to achieve a sense of comfort/informality while maintaining a professional atmosphere.

42% Not in place but may consider in the future 23% Currently in place 23% Would not consider 13% Not in place but definitely plan to implement

Distributed Legal Support Teams Pooling legal administrators rather than locating them next to the attorney they support.

29% Currently in place 26% Not in place but may consider in the future 26% Would not consider 19% Not in place but definitely plan to implement

Outdoor Space Allows access to natural light and fresh air. Can also serve as a social hub for firm personnel.

39% Not in place but may consider in the future 26% Currently in place 26% Would not consider 10% Not in place but definitely plan to implement

Interior Attorney Offices Rather than providing a window office for all attorneys, some firms are achieving greater space efficiencies but placing associates in interior offices.

74% Not in place but may consider in the future 19% Would not consider 3% Currently in place 3% Not in place but definitely plan to implement

Doubling Associates Rather than giving each associate a private office, some firms are doubling up associates to increase efficiency.

61% Would not consider 35% Not in place but may consider in the future 3% Currently in place 0% Not in place but definitely plan to implement

Adaptable/Reconfigurable Wall Systems Modular, demountable wall systems designed for re-configurability helps to facilitate installation and future adaptability.

74% Not in place but may consider in the future 13% Would not consider 10% Not in place but definitely plan to implement 3% Currently in place

Conference-Style Attorney Desking Implementation of larger, conference room-style desks for attorneys provides more space for more technology and allows for more collaboration and impromptu meeting space.

77% Not in place but may consider in the future 13% Would not consider 10% Not in place but definitely plan to implement 0% Currently in place

Hoteling (i e Unassigned Offices) The practice of providing office space on an as-needed basis vs the traditional, constantly reserved basis. Lawyers typically have been housed in dedicated offices but some firms have taken advantage of increased mobility and work-at-home programs to experiment with new models.

42% Not in place but may consider in the future 35% Would not consider 13% Currently in place 10% Not in place but definitely plan to implement

Company Profile Law Firm Expertise Law firm expertise

Analytical solutions to complex transactions

Savills Studley is the premier provider of real estate advisory and consulting services to the legal industry.

Supported by high-quality market research and indepth analysis, Savills Studley executes complex real estate transactions targeted to each client’s needs. A team-oriented culture, coupled with individuals’ unique perspectives and backgrounds, equips each Savills Studley professional with a wealth of resources and the expertise to deliver exceptional results.

Well known for tenacious client advocacy and exceptional service, our intimate understanding of the operational and cultural considerations driving real estate decisions results in creative solutions tailored to each individual firm.

As a strategic partner, we enable law firms to utilize their real estate as a marketable asset to improve profitability, streamline operations, invigorate the culture, as well as recruit and retain talent.

Founded in 1954, Savills Studley pioneered the conflictfree business model of representing only tenants in their commercial real estate transactions. Representing over 70% of the AmLaw 100, our law firm experience is unmatched.

Comprehensive services that result in business value Savills Studley’s comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With a strong presence in every key U.S. market, the firm’s multi-disciplined specialists provide the expert advisory services that allow its clients to achieve their business and financial goals.

Our Services • Office Tenant

• Corporate Services

Savills Studley represents over 75% of the American Lawyer Top 100

The 2016 American Lawyer Top 100 Law Firms Represented

by Savills Studley 1 Latham & Watkins

35 Goodwin Procter

69 Jenner & Block

2 DLA Piper

36 Shearman & Sterling

70 Cadwalader, Wickersham & Taft

3 Baker & McKenzie

37 Wachtell Lipton Rosen & Katz

71 Nixon Peabody

4 Skadden, Arps, Slate, Meagher & Flom

38 Proskauer Rose

72 Duane Morris

39 Winston & Strawn

73 Kilpatrick Townsend & Stockton

5 Kirkland & Ellis

40 Milbank, Tweed, Hadley & McCloy

74 Polsinelli

6 Jones Day

41 Debevoise & Plimpton

75 Drinker Biddle & Reath

7 Sidley Austin

42 Perkins Coie

76 Jackson Lewis

8 Morgan, Lewis & Bockius

43 Holland & Knight

77 Lewis Brisbois Bisgaard & Smith

9 Hogan Lovells

44 Covington & Burling

78 Schulte Roth & Zabel

10 Norton Rose Fulbright

45 Wilson Sonsini Goodrich & Rosati

79 Williams & Connolly

11 Gibson, Dunn & Crutcher

46 Baker Botts

12 White & Case

47 O’Melveny & Myers

80 Ogletree Deakins Nash Smoak & Stewart

13 Ropes & Gray

48 Alston & Bird

81 Fish & Richardson

14 Greenberg Traurig

47 Foley & Lardner

82 Pepper Hamilton

15 Sullivan & Cromwell

50 Cravath, Swaine & Moore

83 Boies, Schiller & Flexner

16 Simpson Thacher & Bartlett

51 Willkie Farr & Gallagher

84 Kaye Scholer

17 Mayer Brown

52 McGuireWoods

85 Cahill Gordon & Reindel

18 Cleary Gottlieb Steen & Hamilton

53 Arnold & Porter

86 Fox Rothschild

19 Weil, Gotshal & Manges

54 Baker & Hostetler

87 Fenwick & West

20 WilmerHale

55 Vinson & Elkins

88 Crowell & Moring

21 Reed Smith

56 Bryan Cave

89 Haynes and Boone

22 Paul, Weiss, Rifkind, Wharton & Garrison

57 Locke Lord

90 Hughes Hubbard & Reed

58 Seyfarth Shaw

91 Barnes & Thornburg

59 Katten Muchin Rosenman

92 Mintz Levin Cohn Ferris Glovsky and Popeo

23 Davis Polk & Wardwell 24 K&L Gates

• Representation • Retail Services

• Strategic Portfolio Consulting

25 Paul Hastings

60 Sheppard Mullin Richter & Hampton

26 Quinn Emanuel Urquhart & Sullivan

61 Pillsbury Winthrop Shaw Pittman

94 Blank Rome

62 Hunton & Williams

95 Cozen O’Connor

63 Littler Mendelson

96 Ballard Spahr

64 Fried Frank Harris Shriver & Jacobson

97 Akerman

27 King & Spalding 28 Morrison & Foerster 29 Akin Gump Strauss Hauer & Feld 30 Squire Patton Boggs

• Industrial Services

• Project Management

• Capital Transactions

• Critical Facilities

93 Steptoe & Johnson

98 Dorsey & Whitney

31 Orrick, Herrington & Sutcliffe

65 Fragomen Del Rey Bernsen & Loewy

99 Baker Donelson Bearman Caldwell & Berkowitz

32 Cooley

66 Venable

100 Kramer Levin Naftalis & Frankel

33 McDermott Will & Emery

67 Troutman Sanders

34 Dechert

68 Faegre Baker & Daniels

Denotes current/past Savills Studley client

1

“Best Commercial Real Estate Tenant Representation” – New York Law Journal (2013)

“Top Brokerage” and “Top of the Heap” – National Real Estate Investor (2014)

“Most Powerful Brokerage Firms” – Commercial Property Executive (2014)

Strongly dedicated and involved in the community

Global reach Savills Studley recognizes the value and importance of a global platform. The firm is part of Londonheadquartered Savills plc, the premier global real estate service provider with over 27,000 professionals and over 600 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L).

Savills Studley is dedicated to promoting leadership, volunteerism and support of charitable organizations. The firm contributes to not-for-profit organizations nationally and on a local level, including the Washington Lawyers’ Committee for Civil Rights and Urban Affairs, The Avon Walk for Breast Cancer, Habitat for Humanity, and The Juvenile Diabetes Research Foundation. Savills Studley is also an active member of the global commercial real estate community, including involvement with the Commercial Real Estate Women (CREW) Network, Catalyst, CoreNet Global, the National Association for Industrial and Office Parks (NAIOP), U.S. Green Building Council (USGBC), and Commercial Real Estate Brokers Association (CREBA).

1/3 of our firm’s revenue since 1954 has been earned through law firm representation

Savills Global Commercial Network

Unite

19 Offices

& Mexic o US

Offices

Offices

Europe

Americas

6

47

rica Af

d

East & dle

Offices

Offices

Offices in: UK, Ireland & Channel Islands England Ireland Northern Ireland Scotland Wales

Asia Pacific Australia China Hong Kong India Indonesia Japan Macau Malaysia Myanmar New Zealand Philippines Singapore South Korea Taiwan Thailand Vietnam

Continental Europe

Middle East & Africa

Austria Belgium Finland France Germany Greece Italy Netherlands Norway Poland Portugal Spain Sweden

Bahrain Oman Qatar South Africa

Americas Mexico US

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a Paci fi Asi

Africa Mi

26

22

ngdom & Ki

land Ire

d

Europe

Asia Pacific

Tiffany Winne Senior Vice President - Branch Manager (602) 783-1611 twinne@savills-studley.com

Tom Johnston Senior Managing Director (602) 783-1602 tjohnston@savills-studley.com

Michael White Senior Managing Director (602) 783-1601 mwhite@savills-studley.com

Russell Fine Associate (602) 783-1617 rfine@savills-studley.com

Janelle Hepner Workplace Strategist (602) 783-1614 jhepner@savills-studley.com

2231 E CAMELBACK ROAD #209 PHOENIX, AZ 85016 • (602) 783-1610 • WWW.SAVILLS-STUDLEY.COM