Edward Poll, The Daily Record Newswire
We spend considerable time and money in choosing where to live so that we can have the nicest houses and reside in the best neighborhoods possible for our lifestyles. Yet when it comes to office space for a law practice, lawyers and firms sometimes neglect to take the same care in considering their options.
Your office space says a lot about what type of a law practice you are. And since office space is invariably a large and complex expenditure — certainly in the top three expense categories for any firm, regardless of its size — that is all the more reason to regularly make sure that your space indeed matches your needs.
In terms of how much you spend on rent, you cannot be too far out of line with your competitors and still stay in business. However, the cost must be balanced against the answers to questions such as these:
• What image do you want to project?
• What do your clients expect from a practice like yours?
• How close must you physically be to the client pool?
• Is your rent competitive for the geographic area in which you are located?
• Is your current physical location one that you, your clients, and your prospects are comfortable with?
• Even if you think better quarters would improve the quality of your professional life, can you afford them?
• What is the needed proximity of your location to the talent pool of staff and lawyers, as well as to key expert resources and suppliers?
• Can you reduce space needs by converting paper files into electronic format to minimize storage needs?
• How much space do you need versus want?
For clients, the size and location of office space makes a statement. A startup entrepreneur might prefer going to a strip mall location with ample free parking, while a corporate client seeks assurance in the prestige derived from a multipurpose marble and glass high-rise with valet parking. A large office with conference rooms speaks to the potential for team meetings and collaboration, while small and simple offices suggest simpler, less adversarial approaches. Such messages define your firm much more clearly than any marketing brochure or advertisement.
Lawyers’ personal taste and professional style are also reflected in office space. Some small firms or solo practitioners may like being in a diverse professional environment, sharing space with accountants, brokers, and other nonlawyers. Others may be comfortable with a “Fegen suite,” where lawyers share the expense of a reception area, conference rooms, clerical staff, and office equipment. And large corporate firms typically want to reflect the hierarchical approach of their clients, complete with corner offices for firm leaders and office perks defined by partner status.
If you are a solo practitioner, or if your firm provides some telecommuting options for its lawyers, you might work out of a home-based office, although there are distinct disadvantages, such as being out of the mainstream of lawyer and client contacts as well as having to convert living space into an office that is separated in an effective way so that you can concentrate and perform your work. This approach may also increase your travel costs to reach clients.
That is why some solos prefer the solution of renting barrister space from landlords who specialize in renter agreements with lawyers and other professionals. The cost of this space is less than that of a full suite of offices but more than the cost of working out of your home. Yet another option for smaller practices is renting an office in an existing law firm on a month-to-month basis. The law firm reduces its cost of operation this way, and, depending on the practice areas of both the subtenant and the tenant law firm, there may be an opportunity to refer work back and forth.
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Edward Poll, J.D., M.B.A., CMC, is a law practice management thought leader and contributor to this publication. His website is at www.lawbiz.com.
