Published on Monday, August 11, 2025
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Where law firms are paying the most — and least — to build offices in 2025.
Legal firms from coast to coast in the United States are revisiting the way they design and outfit their office spaces as they respond to economic challenges, evolving workplace practices and advances in technology. A new analysis by CBRE and Turner & Townsend highlights how these dynamic forces are reshaping budgets and priorities, offering insight into where the dollars go and how spending patterns are shifting.
Their report breaks down law office fit-out costs into major categories: hard construction, professional fees, technology, furniture, fixtures and equipment and contingency. The bulk of spending—between 60% and 75%—is allocated to hard costs, covering construction, demolition and installations. Professional services such as architectural design, engineering, and project management account for 6% to 12% of the total. Outlays for technology come in between 8% and 15%, reflecting the growing importance of connectivity and digital tools, while furniture and equipment typically represent 10% to 20% of the budget. These allocations reveal notable differences across regions, with costs calculated in U.S. dollars per rentable square foot.
Cost escalation has become the expectation as law firms grapple with surging labor rates, rising material prices and the impact of recently imposed tariffs. Policies enacted by the Trump administration have sent waves through supply chains, slowing corporate decision-making and amplifying financial pressures. Even as firms pursue efficiencies—such as shrinking overall office footprints and opting for universal office sizes—spending has risen, driven by the demand for high-quality finishes, abundant glass and well-appointed social spaces.
According to the report, the national average cost for outfitting a law office hit $365 per square foot in 2025—an increase of 7% over last year. In major urban centers like New York and San Francisco, the desire for premium space pushes costs far higher, with mid-range projects averaging $459 and $467 per square foot, respectively. Other leading markets, including Boston, Los Angeles, Chicago and Toronto, all exceed $400 per square foot in this category. Meanwhile, Southern cities such as Austin, Dallas and Houston offer more moderate price tags, with mid-range fit-outs ranging from $304 to $311 per square foot.
Regional distinctions are clear. Cities in the Western U.S.—Seattle and Denver, for instance—experience costs between $332 and $393 per square foot, while Midwestern hubs like Detroit and Minneapolis come in between $353 to $388. Canadian locations such as Vancouver, Montreal and Toronto are among the pricier markets, with mid-range prices spanning $407 to $424 per square foot, mirroring trends seen in larger U.S. cities.
Amid these financial and logistical considerations, firms are also responding to changing expectations around design. The traditional office, dominated by private spaces, is rapidly being replaced by flexible layouts, more collaborative areas and environments rich in technology and amenities. Enhancements aimed at well-being and a positive workplace experience are increasingly central, reflecting an industry-wide effort to attract and retain top legal talent.
Looking to the future, CBRE and Turner & Townsend anticipate that the influence of tariffs and evolving economic policies will become more apparent in the latter half of the year. To manage this uncertainty, law firms and their partners are adopting a variety of risk-mitigation strategies, from planning scenarios early to competitive bidding and locking in material prices.