Explore Legal.io

For Clients
Legal.io company logo
Hire Talent
Find the best fit for any legal role
For Members
Jobs
The best legal jobs, updated daily
Salaries
Benchmark compensation for any legal role
Learn
Learn and grow with our community
Events
Connect with peers at exclusive events
Apps
Tools to streamline legal work
Advertise on Legal.io
Post a job for free
Reach more qualified applicants quickly
Advertise with Us
Reach a targeted audience

For Clients

Hire Talent
Legal.io company logo
Solutions
Find the best fit for any legal role
New Hire
Get highly qualified candidates in days
Popular Roles
Data & Tools
Budget Calculator
Plan and manage your legal budget
Salary Insights
Compensation data for legal roles
Vendor Directory
The ultimate list of legal tech tools

Recent Wave of Office Closures Emphasizes ‘Hot Market’ Fallacy

Several leading law firms have recently closed high-profile offices, highlighting that merely entering a hot legal market is not enough to ensure long-term success.

  • Major firms are rethinking growth strategies, closing offices in various markets, according to a Law.com analysis.

  • Market demand alone isn't enough to sustain expansion without strong financial results.

  • Firms need to avoid stumbling into markets where they don't belong.

  • Law firms should focus on integration, client base, and profitability to thrive in new locations.

Several leading law firms have recently closed high-profile offices in underperforming markets, citing financial pressures and strategic shifts. The closures highlight that merely entering a hot legal market is not enough to ensure long-term success, according to a Law.com report.

Major domestic and international office closures include:

‘Hot Market’ Fallacy

According to Major Lindsey & Africa consultant Jennifer Moss, whether a market is “hot” is not enough of a reason for a firm to have a presence there, unless they have some kind of overlap with its client base and service or industry offerings.

"For example, Boston has become a very hot legal market. It's been very competitive in the past several years, but for many of the firms that are trying to open or grow offices there, it doesn't make sense for all of them to actually be here when you look at their client base, the industries that they're strong in and the industries that are strong here in Boston," Moss explained.

Other key areas a firm should consider when opening a new office include: 

  • financial performance

  • rates

  • governance

  • compensation

  • talent mix

  • partner understanding

Success in a New Location

To ensure the success of a new office, firms need to communicate clearly and integrate all parties involved so as to move in the same direction and support the overall expansion strategy.

"Law firms can be famously disjointed. They are really focused on their expertise and what they can provide to clients, justifiably so," said Roxanne Jensen, founder of EvolveLaw and former managing partner of Morrison & Foerster's Denver office. "But as far as running a business, we know that communication between practice groups is important to have a shared understanding of where the firm is heading." 

Additionally, firms need to determine how to sustain the momentum of the move and gain traction in the new location. This can be achieved by:

  • investing in internal business development and marketing resources

  • advertising themselves to clients and talent in that new market 

  • bringing in new business 

  • bringing in new hires 

  • cultivating a reputation that helps them stand out amongst the competition

With the proper investment and strategy, firms will certainly start seeing revenue growth and profitability, as the final determinants of the success of a new outpost, dictating if its doors will remain open or shutter, the Law.com analysis concludes.

Legal.io Logo
Welcome to Legal.io

Connect with peers, level up skills, and find jobs at the world's best in-house legal departments

More from Legal.io

EU Calls for Safeguards on Outbound Investments in Chips, AI, and Quantum Tech

The European Union asked member states to review investments by their companies in non-EU countries in sensitive sectors like semiconductors and AI.

ABA Says Law Schools Still Need Approval for Alternative Admissions Program

The American Bar Association requires law schools to seek variances to use the JD-Next exam in admissions, awaiting more data on its validity and reliability as a tool for assessing prospective students.

ABA Says Law Schools Still Need Approval for Alternative Admissions Program
CareerNewsletter
The Sound of Risk: Mapping Keystrokes with Deep Learning and Its Implications for Law Firms

Explore the recent research on deep learning and keystroke mapping, achieving 95% accuracy in translating sounds to letters. This article highlights how this technology unveils new security concerns, focusing on law firms' unique vulnerabilities, including data breaches and cyberattacks on valuable client information.

The Sound of Risk: Mapping Keystrokes with Deep Learning and Its Implications for Law Firms
TechnologyLaw Firms
Legal.io Newsletter - April 8, 2022

Published weekly on Friday, the Legal.io Newsletter covers the latest in legal, talent & tech.

Legal.io Newsletter - April 8, 2022
Legal OperationsTechnologyIn-House Counsel
Bitcoin

Bitcoin is a cryptocurrency that allows transactions to take place directly between two parties, without the need of a central bank acting as a middle-man. This legal guide explains what Bitcoin is, and covers some of the legal issues facing this new type of currency.

Bitcoin
TechnologyBanking and FinanceInternet
Washington Becomes Second State to Adopt Alternative Pathways to the Bar

The Washington Supreme Court ruled to adopt the NextGen bar exam, starting July 2026. Other states like Colorado and Minnesota join the effort to provide alternative ways to the bar.

Washington Becomes Second State to Adopt Alternative Pathways to the Bar
Career
Legal Issue Series - How Many Researchers Does it Take?

This is the first of our Legal Issue Series, which will answer hard immigration questions and will attempt to fill in the many holes in the immigration system through legal analysis.

Legal Issue Series - How Many Researchers Does it Take?
Immigration
Legal.io Logo
Welcome to Legal.io

Connect with peers, level up your skills, and find jobs at the world's best in-house legal departments