Hong Kong’s leading law firms are swiftly downsizing their office spaces in prime locations as they grapple with a downturn in mergers and acquisitions and initial public offerings amid economic challenges.
Deacons, the city’s oldest law firm, is reportedly reducing its presence by one floor in Alexandra House, a prestigious office building situated in Central, Hong Kong’s bustling business district. According to sources familiar with the matter, who requested anonymity due to confidentiality concerns, the floor is slated to be released to the market towards the end of the year.
DLA Piper, one of the world’s largest legal firms, has trimmed its office space in Exchange Square, also located in Central, by 465 square meters, as confirmed by one of the sources. Additionally, other prominent legal advisors such as Clyde & Co and MinterEllison are reportedly planning to downsize their rental spaces, according to the same sources.
Hongkong Land Holdings, the real estate arm of conglomerate Jardine Matheson Holdings overseeing Alexandra House and Exchange Square, highlighted that its Central properties boast high occupancy rates, with most tenants renewing leases with the same floor areas after their contracts expired in 2023. However, the company refrained from commenting on the specific plans of the law firms.
A spokesperson for DLA Piper stated that while financial considerations and market conditions influenced the firm’s decision to reduce office space, other factors such as a global flexible working policy and plans to enhance staff collaboration in Hong Kong also played a role. On the other hand, Deacons did not respond to requests for comment.
Sun Hung Kai Properties, a co-owner of Central Plaza, which accommodates Clyde & Co’s office, and Hopewell Holdings, the landlord of MinterEllison, did not provide comments in response to inquiries.