MSBA RESEARCH
Trends in the Legal Profession SPRING/SUMMER 2021 | VOLUME 3, ISSUE 3
To bring MSBA members distilled, insightful data about our evolving profession
M S B A R E S E A R C H : T R E N D S I N T H E L E G A L P R O F E S S I O N 2 0 2 1 i
EXECUTIVE SUMMARY
Trends in the Legal Profession SPRING/SUMMER 2021 | VOLUME 3, ISSUE 3
EXECUTIVE SUMMARY
It’s been over a year since COVID-19 caused drastic and sudden changes to the legal profession. Many of those changes that began in 2020 continue into 2021: how, where and when attorneys work. Most have developed a new found comfort with Zoom, Teams or Hangouts and other technologies that helps us connect remotely. The 2021 Report on the State of the Legal Market by The Center on Ethics and the Legal Profession at the Georgetown University Law Center and Thomson Reuters Institute finds that firms and certain practice areas thrived despite the challenges of the pandemic. Many firms profited from a combination of cost cutting measures and PPP loans. The previous Spring/Summer Edition of the Trends Report saw early indications that Members adopted new technologies as well as making changes to where they work. The trends indicate that those changes are permanent not only according to the predictions from national experts but also reflected from our own Members and MSBA Staff.
Informing our members and curating content to make efficient use of their time is an important role of the MSBA. We hope this MSBA Research product provides insightful data and trends as you consider the evolving nature of the legal profession. For questions or suggestions for future MSBA Research topics, please email feedback@msba.org
Criselle Anderson
MSBA Research Notes Editor
Carolyn Magnuson
MSBA Research Notes Editor
Victor L. Velazquez, CAE
Executive Director Maryland State Bar Association & Maryland Bar Foundation
M S B A R E S E A R C H : T R E N D S I N T H E L E G A L P R O F E S S I O N 2 0 2 1 ii
Table of Contents ii Executive Summary 2 Maryland Legal Profession Updates 5
Fast Facts: Legal Profession Statistics
9 State of the Legal Market 17
Predictions for the Legal Profession in 2021
21
Commentary from MSBA on Predictions for the Legal Profession in 2021
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
1
Maryland Legal Profession Updates
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
2
M A RYL A N D L EG A L PR O F E S S I O N U PDAT E S
THE NUMBER OF ACTIVE ATTORNEYS IN MARYLAND
2.25%
increase from September 2019
(source: Client Protection Fund of the Bar of Maryland as of 4/7/2021)
Top 10 Largest Maryland Firms
(by number of attorneys)
Venable, LLP and Miles & Stockbridge, PC keep the number 1 and 2 spots from 2019. DLA Piper moves to the number 4 spot ahead of Baker Donelson. (source: Baltimore Business Journal, 2020 - https://www.bizjournals.com/baltimore/subscriber-only/2020/01/09/largest-law-firms-in-greater-baltimore.html)
1.
6.
2.
7.
3.
8.
4.
9.
5.
10.
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
3
M A RYL A N D L EG A L PR O F E S S I O N U PDAT E S
MSBA Daily Record Maryland Lawyers Confidence Index When asked whether they felt the overall state of the economy was good, a combined 60% of respondents disagreed somewhat or strongly with the statement, down from a combined 72% from Q3 2020. Responses reflect a slight improvement in views toward the economy yet continued skepticism compared to the beginning of 2020. Sentiments toward investing in support staff, new technology and marketing, also increased slightly from the previous quarter, a sign of slowly shifting views. About 34% of attorneys said that they plan to increase billable hours over the next few months, up from 28% last quarter. (source: https://thedailyrecord.com/2020/12/10/md-lawyers-survey-results-show-glimmers-of-optimism/)
Maryland Lawyer’s Confidence Survey: Round 16 QUESTION
INDEX
-100 -80 -60 -40 -20 0
Our firm plans on hiring additional attorneys within the next 3 months
20
40
60
80 100
-55
Our firm anticipates an increase in billable hours over the next 3 months
-2
Within the next 3 months, our firm plans to invest or expand in the following areas: Marketing
5
Within the next 3 months, our firm plans to invest or expand in the following areas: New Technology
14
Within the next 3 months, our firm plans to invest or expand in the following areas: Support Staff
-24
Within the next 3 months, our firm plans to invest or expand in the following areas: Infrastructure
-41 -41
The overall state of the economy is good
RESPONSES (TOTAL = 261) 0
20
40
Disagree Strongly
60
80
Disagree Somewhat
100 Neutral
120
140
Agree Somewhat
160
180
Agree Strongly
(Source: The Daily Record’s Maryland Lawyers Confidence Index)
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
4
Fast Facts: Legal Profession Statistics FROM CLIO’S LAWYER’S STATISTICS FOR SUCCESS 2021
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
5
FA ST FACTS: L EG A L PR O F E S S I O N STAT I ST I CS
THERE ARE
1.3 million LAWYERS IN THE US
(4 per 1,000 Americans)
THE STATES WITH THE MOST LAWYERS ARE
New York, Maryland, AND Massachusetts (6.7 lawyers per 1,000 Maryland residents)
37% of lawyers are female, and 86% are white Women outnumber men in law schools (112,000 law school students in the US, 53% are women) Jobs for lawyers are expected to grow in the next decade
4%
In 2019, the median pay for a lawyer was
The lowest average hourly billable rate by state is in West Virginia
$166
The highest average hourly billing rate by practice area was for bankruptcy
$347
The lowest average hourly billing rate by practice area was for juvenile
$88
Billable hours make up of a lawyer’s work day
31%
$122,960
AV E R A G E H O U R LY B I L L A B L E G R O S S R AT E
400 300 200 100
The average hourly billable gross rate for lawyers is close to $300 per hour The highest average hourly billable gross rate by state is $380 in DC Maryland’s hourly billable gross rate is $306
0
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
6
FA ST FACTS: L EG A L PR O F E S S I O N STAT I ST I CS
Lawyers don’t collect on they bill to clients
12% of the hours
62% of law firms budget for technology
37% of legal professionals say most if not all lawyers should run their practice virtually
72% of consumers would prefer to pay
68% of law firms say their website is mobile-friendly
their legal fees via payment plans
40% of consumers would never hire a
lawyer who didn’t take debit or credit cards
57% of electronic payments to lawyers
get paid within the same day they are billed, and 85% get paid within a week
59% of lawyers are using web-based software solutions
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
57% of consumers look for a lawyer on their own, and many search online
(sources: https://www.clio.com/blog/lawyer-statistics/?utm_source=internal&utm_medium=email&utm_ campaign=stats-success-nam-prospect&utm_content=cta&mkt_tok=eyJpIjoiTm1VNE0yRXdObVl5TldRMiIsInQiOiJSbVJIckZMV1g3Vm5hVThFZGMyeUkwaTBkeExyODlOU1h3czhTTThCNTM0a0VZTjRUOXd1aCtJbnlnUHlwTlhtQ2FDOUpaM3ZHV05nbis0N2lINldCOGdhMHBYcTU4UlpIc2V6MnZSTExFaHhCR1l5ZlFJZ0sreTdpVWt3QUhoNiJ9#section-0; https:// www.americanbar.org/news/abanews/aba-news-archives/2020/07/new-aba-profile-of-the-legal-profession-report-shines-light-on-l/)
7
FA ST FACTS: L EG A L PR O F E S S I O N STAT I ST I CS
Top 10 Largest Law Firms
(by number of attorneys)
Baker McKenzie, DLA Piper and Norton Rose Fulbright remain the top three The firms added more attorneys to their ranks from the previous year. Latham & Watkins replaced Hogan Lovells which fell to the number five spot, along with Kirkland & Ellis and Jones Day trading places for the sixth and seventh place. Morgan Lewis & Bockius dropped to the number ten spot. (source: https://abovethelaw.com/2020/06/the-500-largest-law-firms-in-america-2020/?rf=1)
1.
6.
12.61% increase from 2019
1.8% increase from 2019
2.
7. * 0.1% increase from 2019
5.1% increase from 2019
3.
8.
2.5% increase from 2019
3.2% increase from 2019
4.
9. 5.5% increase from 2019 7.0% increase from 2019
5.
10.
2.3% increase from 2019
0.2% increase from 2019 *DLA Piper is the 4th largest law firm in Maryland.
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
8
State of the Legal Market REVIEW KEY FINDINGS IN 2020 THAT WILL INFLUENCE THE FUTURE MARKET IN 2021
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
9
STAT E O F T H E L EG A L M A R K E T DEMAND
Encouraging news as the daily demand is keeping pace with the previous two years’ average (as of November 2020). AV E R A G E D A I LY D E M A N D P E R L AW Y E R B Y M O N T H
Avg. Daily Demand (hrs) per FTE
6.4 6.2 6.0 5.8 5.6 5.4 5.2
JAN
FEB
MAR
APR
M AY
JUN
JUL
2-Year Average (2018-2019)
AUG
SEP
OCT
NOV
DEC
2020
Lawyers (contractors excluded) Billable time type; non-contingent matters
Source: Thomson Reuters Peer Monitor®
DEMAND BY SECTOR
The Tax Law sector shows a 4.2% decrease in 2020 from the previous year, however, this trend is likely to rebound significantly with the demand due to the pandemic and recent changes to the tax code.
“The outlook for tax is busy because the 2017 tax reform law created fundamental changes that are still being digested. The Internal Revenue Service and U.S. Treasury Department have been issuing a steady stream of new rules.” - David Schnabel, the head of Davis Polk & Wardwell's tax practice DEMAND GROWTH BY PRACTICE
All timekeepers Billable time type; non-contingent matters
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
Source: Thomson Reuters Peer Monitor®
10
STAT E O F T H E L EG A L M A R K E T
COST CUTTING MEASURES
Six approaches that firms took to manage lawyer and non-lawyer headcount and reduce compensation and related costs were reflected in the Thomson Reuters Law Firm Business Leader Survey completed in October 2020. That survey showed that, in response to the pandemic firms took the following measures:
46% of firms reduced partner draws, • 40% reduced the salaries of fee earners, • 34% furloughed support staff,
32% reduced the salaries of support staff, • 36% discharged support staff, and • 11% discharged fee earners.
•
•
L E V E R A G E F O R E Q U I T Y PA R T N E R S
Reductions in associates were steeper than equity partners. Firms reversed the upward trend in leverage (ratio of lawyers to equity partners) they had experienced in 2019. L E V E R A G E ( L AW Y E R T O E Q U I T Y PA R T N E R ) 2.4
Ratio
2.3
2.2
2.1
Q3 2017
4
Q1 2018
2
3
4
FTE Lawyers (contractors excluded) Billable time type; non-contingent matters
Q1 2019
2
3
Demand
4
Q1 2020
2
3
OCT + N O V. 2020
Source: Thomson Reuters Peer Monitor®
The graph (above) depicts leverage in two ways — one measured by FTEs (i.e., the ratio of the number of lawyers to the number of equity partners) and the other measured by demand (i.e., by the ratio of total billable hours of lawyers to the total billable hours of equity partners).
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
11
STAT E O F T H E L EG A L M A R K E T
EXPENSES
Both of these charts indicate the dramatic expense cuts to direct and overhead imposed for firms beginning in the 1Q of 2020. EXPENSE GROWTH – DIRECT EXPENSES
Rolling 12-Month Y/Y Change
8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2 %
Q2 2019
3
4
Am Law 100
Q1 2020
2
Am Law Second Hundred
3
N O V. 2020
Midsize Source: Thomson Reuters Peer Monitor®
81% of firms stopped or significantly reduced all discretionary spending EXPENSE GROWTH – OVERHEAD EXPENSES
Rolling 12-Month Y/Y Change
8% 6% 4% 2% 0% -2 % - 4% -6% -8% Q2 2019
3
Am Law 100
4
Q1 2020
2
Am Law Second Hundred
3
N O V. 2020
Midsize Source: Thomson Reuters Peer Monitor®
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
12
STAT E O F T H E L EG A L M A R K E T
PROFIT
Cost cutting measures and loans from the Payroll Protection Program (PPP) resulted in very strong growth in profits per equity partner during 2020.
25%
P R O F I T P E R E Q U I T Y PA R T N E R G R O W T H
20%
15%
10%
5%
0%
All Firms
Am Law 100 Nov. 2019
Am Law Second Hundred
Midsize
Nov. 2020
59% of firms (79% of small firms and 48% of large firms) applied for and received government financial support during 2020, mostly in the form of Payroll Protection Program loans
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
13
STAT E O F T H E L EG A L M A R K E T
Lessons Learned From the Pandemic There are a number of positive lessons that law firms have learned during the past several months. #1: REMOTE WORK WORKS
Most firms now acknowledge that remote working – though clearly different from in-person operations – can work. The proportion of U.S. lawyers who now want to work remotely at least one day a week has doubled from the pre-pandemic period.
37% of lawyers expressed an interest in remote work prior to the pandemic 76% now favor the remote work option #2: ROLE OF TECHNOLOGY IN DELIVERY OF LEGAL SERVICES
Partners in most firms probably now have a broader acceptance of the role of technology in the effective delivery of legal services than before the pandemic began. The experience of adapting to the radically changed market conditions in 2020 will continue with experimentation in other forms of service delivery.
84% of partners expected their firms to increase investments in technology #3: PERMANENT CHANGE I N O P E R AT I O N S
Almost all firms have significantly reduced costs by making fundamental changes in their operations and many of these changes are likely to remain even after the pandemic ends. • Adapting to more efficient use of office and administrative space • Rethinking changes in staffing and work patterns, • Altering levels of secretarial support, • Reducing expectations for in-person meetings, • Increasing the efficiency of digital connections, and • Reducing business travel. (Sources: 2021 Report on the State of the Legal Market, The Center on Ethics and the Legal Profession at the Georgetown University Law Center and Thomson Reuters Institute, https://www.law.com/ americanlawyer/2020/12/30/2021-forecasttax-attorneys-will-be-in-high-demand-thanksto-the-pandemic-and-a-new-president/)
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
14
STAT E O F T H E L EG A L M A R K E T
Law Firm Mergers 150
MER GER S BY YEAR
100
2017: 102 2018: 106
50
2019: 115 0
2020: 65
2020 represents the lowest total since 2012. Firms took aggressive steps in Q2 2020 to slow their growth and resulting merger activity among firms slowed dramatically. Starting in the 3rd quarter of 2021 the MSBA will begin to track MD merger activity. The largest mergers of 2020 were between Philadelphia-based firms and noted the average size of acquired firms in 2020 was 18 lawyers. Nine firms didn’t make it to see 2021: • Satterlee Stephens • Redgrave • Morgan Melhuish Abrutyn • Greene Radovsky Maloney Share & Hennigh • Stahl Cowen Crowley Addis • Wasserman, Jurista & Stolz • Solow, Isbell & Palladino • Baer Crossey McDemus • Golomb & Honik Industry experts anticipate a turnaround in 2021. A combination of the COVID-19 vaccine rollout and remaining complications from Zoom-based deal-making could leave a dent in the final numbers again this year, however, there’s no shortage of interest. There is more interest among large firms than in the past. These mergers are not just a large firm acquiring a smaller firm, but mergers of equal sized firms, as well. Of those smaller and midsize firms, between 50 and 200 lawyers, the interest is centered in building up practice areas in which they feel thin.
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
“I think they’re just looking for more scale and to build up practice depth. And while you certainly see that through laterals, it’s expensive, not guaranteed and slow,” she said. “So I think that’s certainly one theme among that group—a worry about being too small in core practices and specialty practices.” - Lisa Smith, a principal at Fairfax Associates (sources: 2021 Report on the State of the Legal Market, The Center on Ethics and the Legal Profession at the Georgetown University Law Center and Thomson Reuters Institute, https://www.law. com/2020/12/29/gone-but-not-forgotten-the-law-firmnames-you-wont-see-in-2021/, https://www.law.com/ americanlawyer/2021/01/05/after-down-2020-analystssee-full-bore-appetite-for-big-law-mergers-in-21/)
15
STAT E O F T H E L EG A L M A R K E T
Post-Pandemic Trends for the Law Office Law firms signing new leases or renewals in 2019 reduced their occupied square footage by an average of .
10.6%
P E R C E N TA G E O F G R O S S A N N U A L R E V E N U E WA S S P E N T O N R E A L E S TAT E LAST YEAR:
More than 9% : 12% 8-9%: 14% 6-7%: 30% 4-5%: 34% Less than 4%: 10%
7% of legal professionals let go of their commercial office space after the pandemic began
12% are unsure if
they will keep their commercial office space in the future Firms paid upwards of
$10,000 or
$20,000 per lawyer for office space In 2017, 62% of respondents indicated that attor-
neys would work remotely more often in five years. That number was 78% in early 2020 and has now jumped up to 96% as of Q2 2020. T H E P E R C E N TA G E AT T O R N E Y S A N T I C I PAT E W O R K I N G R E M O T E LY I N T H E NEXT 5 YEARS:
4% No, do not anticipate our attorneys will work remotely more often
49% Yes, attorneys will work remotely more often and they will retain their personal offices
48% Yes, attorneys will work remotely more often and initiate hoteling plans
(source: https://www.clio.com/resources/legal-trends/2020-report/ read-online/)
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
16
Predictions for the Legal Profession in 2021
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
17
PREDICTIONS FOR THE LEGAL PROFESSION IN 2021
#1: DISRUPTION WILL CONTINUE , MAKING WAY F O R N E W B U S I N E S S M O D E L S F O R L AW F I R M S .
“Management teams will begin exploring alternative space and staffing models, and we’ll see an increase in collaborations with legal and back-office outsourcing providers.” – TIM CORCORAN, PRINCIPAL, CORCORAN CONSULTING GROUP
# 2 : N O N - L AW Y E R O W N E R S W I L L D R I V E INDUSTRY CHANGE.
“New York, California, Texas, or another very large state will approve non-lawyer ownership of law firms.” – Bruce MacEwen, President, Adam Smith, Esq. #3: TECHNOLOGY INVESTMENTS WILL DRIVE COMPETITIVENESS .
“In 2021, law firms will rethink their cost structures and reduce fixed costs. Law firms that invest in technology to increase efficiency, reduce costs and mitigate risk will be more successful.” – DEANE S. PRICE, CEO, ADERANT
#4 : TECHNOLOGY ADOPTION WILL A C C E L E R AT E .
“Creative service delivery and partnering models unlocking additional value will emerge, available legal talent will be leveraged without regard to geographic location, and legal processes will be fine-tuned with an eye toward the implementation of cutting-edge technology.” – DAVID GALBENSKI, EVP OF STRATEGIC INITIATIVES, LUMEN LEGAL
#5: COMMON PRACTICES WILL BE R E - E VA L U AT E D , B A R R I E R S T O E N T R Y REMOVED.
“I predict that the state bar exams will begin to be discontinued. [COVID] has upended countless industries and common practices, bar exams are just one. In response, many courts also have adopted temporary rules allowing recent law school grads to become provisionally admitted to practice law... In practical terms, they provide little value and are an enormous financial and time burden on already-financially-strapped law grads.” – JANET STANTON, PARTNER, ADAM SMITH, ESQ.
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
18
PREDICTIONS FOR THE LEGAL PROFESSION IN 2021
#6: FIRMS WILL SETTLE INTO THE “NEW N O R M A L” O F V I R T U A L W O R K .
“2021 will be the year in which law firms will have to face ‘the new normal.’ WFH expectations, less office space requirements, the need to be agile in the face of unexpected change and calls for the acceleration of new technology adoption.” – ANDY STOKES, DIRECTOR, ANDY STOKES CONSULTING LTD
# 8 : “ G O I N G T O T H E O F F I C E ” W I L L TA K E O N NEW MEANING.
“Responding to lawyers and staff who no longer wish to either work from home or come to the office five days a week, mid-size and large law firms will begin setting up “satellite” offices in suburban locations accessible by car or transit, where people can work and collaborate without enduring the long commute downtown.” – JORDAN FURLONG, PRINCIPAL, LAW21
# 7 : F I R M S W I L L R E W R I T E E X P E C TAT I O N S , AS THE RULES OF HYBRID WORK ARE DEFINED.
“Large law firms will need to create/appoint “heads of hybrid (working)” or similar. Whether or not they’ve an individual officially in place by the end of 2021, there’ll be considerable pressure on somebody somewhere to handle the overall balance between increasing WFH-as-normal and necessary “collaborative” office time for strong teams and needed development.” – RICHARD BRENT, EDITOR-IN-CHIEF, BRIEFING, BURLINGTON MEDIA GROUP
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
#9: FLEXIBILITY WILL DRIVE FUNCTION IN THE OFFICE OF THE FUTURE.
“Reimagined a) use of office space with far greater flexibility to suit multiple uses (flexible patterns so that hot desks can become meeting rooms at the press of a button, etc.), and b) staffing to breathe life into the concept of multidiscipline practices even before they are formally permitted in all jurisdictions (MBA’s, Software Engineers, Systems Analysts, etc.).” – GERRY RISKIN, CHAIRMAN, EDGE INTERNATIONAL
19
PREDICTIONS FOR THE LEGAL PROFESSION IN 2021
# 1 0 : O N C E AV E R S E T O I T, T H E M O D E R N L AW Y E R E M B R A C E S T E C H N O L O G Y.
"The pandemic and working in a decentralized fashion have forced many firms to change their core processes and get the lawyers more involved. There were challenges earlier in the pandemic, but as time has marched on, you are seeing an increasing number of lawyers taking up paperless billing applications, recording time on a timely basis, and becoming more involved in collaboration spaces (both internally and externally). This will take off in 2021." – GERRY RISKIN, CHAIRMAN, EDGE INTERNATIONAL
# 1 1 : T H E M O D E R N L AW Y E R W I L L B E A G I L E .
“Lawyers enacting safety precautions during the pandemic have increased their comfort with providing legal services to their clients using video conferencing tools such as Zoom or Google Meet. In turn, clients have been indicating that these virtual appointments are a convenience to them as well. Flexibility, responsiveness, and reduced overhead – what could be better?” – SHEILA BLACKFORD, PRACTICE MANAGEMENT ATTORNEY, RISK MANAGEMENT SERVICES, OREGON STATE BAR PROFESSIONAL LIABILITY FUND
# 1 2 : D ATA W I L L D R I V E A D D I T I O N A L IMPROVEMENTS IN PRODUCTIVITY AND E F F I C I E N C Y.
“The growth of eBilling amongst law firm clients continued at a steady pace in 2020 especially with all the disruptions and clients adapting to the new normal. This will remain a constant theme in 2021, requiring continual focus on improved productivity and increased efficiencies. Savvy law firms will rely on technology, and more importantly the experienced-based data delivered by their systems to analyze accuracy and compliance with billing rules and guidelines. Law firms will utilize this data to improve processes, adjust behavior and guide business decisions to focus on the most successful results – minimizing payment reductions and improving overall cashflow.” – MARIE BURGESS, SENIOR DIRECTOR PRODUCT MANAGEMENT, ADERANT
#13: WELLBEING WILL BECOME A P R I O R I T Y.
“We will see mental well-being defined not only as an altruistic value, but an economic value in the business of law as well. COVID-19 has shown us that both our physical and emotional wellness can be fragile. However, law firm leaders are beginning to understand that to cultivate resilience and emotional well-being in their people will also cultivate high performance, economic strength, and sustainability in their business.” – RENEE BRANSON, PRINCIPAL, RB CONSULTING
# 1 4 : T H E N I M B L E F I R M W I L L P R E VA I L .
“If virus concerns subside in 2021, as we all hope, we’ll see two types of law firms emerge on the other side of this pandemic: those that struggle to return to what was once normal and the tech-savvy firm that embraces the change as permanent. The latter will shed the overhead of excessive office space and open up access to a talent market free of geographic constraints. This will leave them well-positioned to employ the sharpest legal minds at the most competitive prices.” – FRANK STRONG, FOUNDER AND PRESIDENT, SWORD AND THE SCRIPT MEDIA, LLC (source: https://www.aderant.com/think-tank/21-legal-tech-andbusiness-of-law-predictions-for-2021/)
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
20
Commentary from MSBA on Predictions for the Legal Profession in 2021 L AW F I R M S I N M A R Y L A N D , like other businesses, reduced their physical office space
due to the pandemic. In 2020, leasing of office space in suburban Maryland decreased 40%, resulting in a loss of one million square feet of occupancy, while in Baltimore it dropped 45%. The economic impact law firms experienced due to the sudden shift to remote work depended, in large part, on their practice areas. Thanks to Governor Hogan’s authorization of remote notarization, estate planning firms thrived. Bankruptcy firms were able to maintain or increase their work as well. Those working in other practice areas, like criminal defense and personal injury, suffered a noticeable decrease in work. This is largely because shelter in place orders caused a decrease in activity that would lead to criminal charges or accidents that cause injuries. Irrespective of whether their practice suffered, some attorneys throughout Maryland found it difficult to adapt to the remote work environment. They felt a disconnect with their clients, and missed the ability to easily collaborate with co-workers. They also found it harder to grow their client bases or develop new business. Other attorneys, though, readily embraced working from home and found that they preferred it to commuting to the office each day. Regardless of whether people prefer an at-home or office work environment, it is clear that the shift in models caused by the pandemic created uncertainties regarding the practice of law going forward. A recent poll of Maryland lawyers found that the majority of people want a format that falls somewhere in between the two extremes, and prefer a flexible work arrangement that permits them to work from home or go into the office as they see fit. A few of the people polled fall on either end of the spectrum and want to be either fully remote or in the office. It is expected, though, that to some degree remote work will continue in the future, and solo practitioners and smaller firms may do away with offices altogether. COLLEEN ARACRI - LEGAL CONTENT EDITOR, MARYLAND STATE BAR ASSOCIATION
MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
21
For our members. For the profession. Serving, connecting, and empowering Maryland’s legal professionals. MSBA RESEARCH: TRENDS IN THE LEGAL PROFESSION 2021
22