Biglaw, Lawyerly Lairs, Real Estate

Lawyerly Lairs: Skadden Makes A Major Move

The neighborhood Skadden is moving to isn't very pretty right now, but that might change in the years to come.

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Biglaw is getting less big when it comes to office space. As we recently mentioned, law firms are spending less on their real estate. They’re renting smaller spaces, often outside the central downtown areas they’ve traditionally favored. As the American Lawyer put it, “[a]s a result of tightening market conditions, some firms are gravitating to ‘unorthodox’ locations in areas right outside the central districts they usually prefer.”

Consider the move that Skadden Arps just announced for its Manhattan headquarters. It’s going to an area that is certainly “unorthodox,” perhaps downright icky….

From the firm-wide announcement issued yesterday by executive partner Eric Friedman:

We are pleased to inform you that the Firm has signed a Letter of Intent for a 20-year lease at Brookfield Properties’ Manhattan West development. Our new, state-of-the-art building, 1 Manhattan West, will be built at Ninth Avenue and 33rd Street, which is part of what we believe will be the most exciting new neighborhood in the city.

For aficionados of Lincoln Tunnel access? Right now that area is squalid, seedy, and traffic-congested — but probably “cheap as f**k,” as one observer speculated.

We look forward to being a part of the ongoing evolution of Manhattan’s west side. Our move is targeted for Spring of 2020. We will provide additional information as the relocation process continues.

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In fairness to Skadden, it could very well contribute to that “evolution.” The firm has a history of jumping into sketchy areas and helping them gentrify. If you think Times Square is hellish now, you should have seen it before SASMF moved in. The tourist-packed urban Disneyworld of 2014 is a big improvement over the filthy red-light district that existed before Skadden moved to Times Square back in 2000.

Skadden’s move isn’t a huge shock to people who have been following the situation. Rumors have been swirling about for months now (and have turned out to be true, as is so often the case).

Some might express dismay at the prospective of Skaddenites no longer sharing quarters with the cool kids at Conde Nast. But that was going to happen even if Skadden stayed put; the Conde Nasties are moving to 1 World Trade Center in 2015. (The Conde and Skadden moves are not good news for the Durst Organization, which owns 4 Times Square.)

What do Skadden folks think of the move? One lawyer we heard from expressed enthusiasm: “Ooooh, shiny new things!” And, as a practical matter, good access to the Lincoln Tunnel and Penn Station for Skaddenites who live in New Jersey. For many other Skadden people — like the patent lawyer whose Upper West Side housing hunt we recently covered — the commute won’t change very much.

Congratulations to Skadden on its exciting new offices. We’re confident that they will be very funky — in a good way.

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Report: Rents Up, Square Footage Down for Am Law 200 Firms [American Lawyer via Morning Docket]
Report: Law Firms Cut Costs by Reducing Space [New York Observer]
Skadden Arps relocation site is all rumors, no lease [New York Post]

Earlier: Lawyerly Lairs: A Skadden Associate’s Housing Hunt
Skadden Arps And The Funky Bunch

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