Ed. note: This is the latest installment in a series of posts by Lateral Link’s team of expert contributors. Larry Scott is a Principal at Lateral Link and oversees attorney placements in Texas. Prior to joining Lateral Link, Larry was an Executive Senior Partner with a national recruiting firm. He practiced as an attorney at Jenkens & Gilchrist and also spent time in global accounting firms in the U.S. and internationally, including Hong Kong and Vietnam. He holds a J.D., cum laude, from the University of Houston, a B.A., in accounting, with High Honors, from the University of Florida, and a Masters in Accounting, also from the University of Florida. Outside of work, Larry enjoys fitness and music. He is an avid guitarist who regularly performs at blues jams around Houston. Please contact Larry at [email protected].
The Texas market continues to be a great place for lawyers. If office openings are any indication, Texas is booming! Since 2013, approximately 40 Am Law 200 firms have opened offices here. For lawyers unfamiliar with the Lone Star State, Texas is referred to as “The Friendly State” — a well-deserved designation. Law firms, particularly in Houston and Dallas, are very interested in relocating well-credentialed lawyers here.
Overview of the Texas Legal Market
As law firms continue to proliferate across the globe, there are fewer and fewer opportunities for firm expansion. Clients drive office openings as regional demands pressure firms to expand into new markets. It was not that long ago that Texas was considered more of a niche home for firms specializing in energy, albeit a large one. However, now Texas is drawing firms pushing to expand not just their energy offerings, but their litigation and high-tech IP practices as well.
What does this mean for you? Texas has become a top destination for attorneys with its low-cost of living and competitive salaries compared to New York and other major markets. Associates at large firms can expect to earn the same or very close to New York standards (especially when you factor in that Texas doesn’t impose any individual income tax). You’ll find your salary likely goes much further in Texas than it would in New York.
Texas has three primary legal markets, Houston, Dallas, and Austin. Austin is a much smaller market compared to the market leaders, Houston and Dallas. Houston and Dallas offices have become so significant that some of the Am Law 20 firms are reporting that the Texas offices have become the most profitable in the entire firms.
A question that frequently comes up in Texas is whether firms will seriously consider someone with limited ties to the area. The short answer is a “yes!” In the past, it might have seemed strange for people to move to Texas if they didn’t already have connections with the state. However, now it’s completely normal, particularly in Houston and Dallas. Most large firms are fine if people are upfront about coming to Texas for the opportunity. They would much prefer to hear that than a manufactured reason. There are exceptions. For example, Austin can still be a difficult market to break into without strong ties to the area. The remainder of this article will focus on the two larger markets, Houston and Dallas.
Houston
Houston is the fourth most populous city in the United States. Its economy is still very focused on the energy industry (particularly oil); however, health care, biomedical research, and aerospace also constitute large areas of the city’s economy. Just over half of the Am Law 100 have offices in Houston. Texas firms such as Vinson & Elkins and Baker Botts have the largest offices. However, new market entrants such as Kirkland & Ellis have grown rapidly and are doing some of the largest energy transactions in the city. Of all the Texas markets, Houston is the most international. For those without Texas ties, Houston is the easiest city to break into.
The energy industry drives a significant portion of the legal work in Houston, both in corporate and litigation. In addition, firms represent a diverse range of industries in technology, healthcare, banking, and real estate. Corporate, energy transactions, and commercial litigation are currently busy practice areas in Houston. While bankruptcy groups are busy, this has not yet translated into actual hiring here. Although IP litigation has slowed down, patent prosecution is showing demand.
Dallas
Dallas is the ninth most populous city in the United States. Dallas’s major industries include financial services and banking, defense information technology, life sciences, semiconductors, and telecommunications. There is also significant energy and energy-related work in Dallas, however the market is not nearly as energy-centric as Houston and is much more diversified. You will find some of the larger banking and finance practices here in Dallas.
Compared to Houston, the largest offices in Dallas are predominantly Texas firms. The number of firms on the “Cravath” scale in Dallas is currently smaller than in Houston. However, that number is rising as national firms continue to open offices in Dallas. Busy practices in Dallas are corporate/M&A, finance, and healthcare. Although IP litigation has slowed down, patent prosecution is showing demand.
Why Texas?
In summary, the Texas market is a great destination for lawyers. The firms are very open to relocation candidates and the majority of Am Law 100 firms have offices here. When you factor in the competitive salaries, relatively cheap cost of living, and friendly tax laws, Texas makes a compelling case as the destination for your next legal opportunity. Whether you are ready to make a move or just want to discuss the Texas market, contact me at [email protected]. I look forward to helping you!
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