Biglaw

The Surprising Cities Where The Legal Sector Is Booming

The growing pull of non-traditional markets.

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One of the consequences of the new normal where every market pays like Cravath — for some reason — is that unlikely legal markets are booming. If you could make New York money with decidedly non-New York real estate, it’s hard to pass up.

A new study from real estate services firm CBRE, featured in the American Lawyer, confirms that trend — it’s time for lawyers to expand their horizons:

Atlanta was home to 16.3 percent more lawyers in 2017 than two years earlier, labor market data compiled by CBRE showed. That growth was over four percentage points more than the runner-up, Los Angeles, where lawyer head count grew at 11.9 percent. Other cities with double-digit growth included Kansas City, Austin and San Francisco. The national average was 3 percent.

But while Atlanta may be hauling in the lawyers of today, the study suggests the market of tomorrow may be further west:

Looking at the wider category of legal services, Austin added jobs at an 11.1 percent clip, while Atlanta was second at 8.3 percent. Phoenix, Detroit and Dallas/Fort Worth rounded out the top five, all growing between 4 percent and 5 percent. The national average was 1.5 percent.

“Austin is a really interesting story, from a lot of perspectives. If you look at why law firms are growing where they are, it’s clear that they’re following business services in general,” said Julie Whelan, head of occupier research for the Americas at CBRE.

This logic is sound, but only if you assume the startup boom in Austin will behave like the booms of yesteryear. When new companies cropped up in the ’90s, lawyers needed to flock to where the business was. In an age of robust telecommunication technology, will the Austin startup still require the personal touch, or will they be content with a lawyer a time zone over?

Some firms are already banking on old habits dying hard. Reed Smith and Shearman & Sterling have both boosted their presence in Austin this year.

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Whether or not this pays off for Biglaw over the long haul, what’s clear today is that any young lawyer looking to maximize their take should be considering non-traditional markets. Per Bankrate.com, the cost of living in Austin is almost 7.5 percent lower than Manhattan, while the cost of living in the Atlanta area is a whopping 56 percent lower. If you have any connection to either city or a burning desire to make a home there, why are you still looking in Manhattan?

Atlanta, Austin Lead the Way for Legal Industry Jobs, Study Says [American Lawyer]

HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.

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