We reported last month the news that law firm Baker & McKenzie was using the GFC-related commercial property market downturn for partnership gain.
Well, it appears that Bakers isn’t the only GFC bargain-hunter with revelations that other major Australian law firms have recently either negotiated favourable leases or are in the hunt for bargain basement prices on the back of the commercial property market downturn.
As reported by The Australian last week:
Law firm Minter Ellison, which is in Aurora Place, is believed to have renegotiated a short-term lease to remain in the office tower for a further two to three years. Among parties shopping for space in Sydney’s CBD are law firms Baker & McKenzie, Blake Dawson, and Freehills, with speculation that Freehills may take space at the proposed 40-storey office tower at 163 Castlereagh Street.
The day after publishing the above article, The Australian (11/09) reported that in respect of some corners of the Sydney property market:
For the top 30 per cent of transactions, the data shows a 9.2 per cent price fall in prices.
In terms of annual expenditure, tenancy costs are second only to employee wages in their impact on the partners’ bottom line. Assuming this real estate jokeying results in a decrease in overheads, one wonders whether any of these firms will review their rumoured decision to uniformly impose pay freezes on staff.
Send the Firm Spy your news and views!
Loading...
How long do you expect it takes a law firm to move to new premises? The whole process of identifying premises, agreeing terms and then moving could take a long time- don’t think you’ll be seeing any immediate changes to salaries………….