Choosing an office site can be a length and time-consuming experience. If you’re going to invest thousands of dollars and a lot of time in a space, you really need to be happy with it. You should also appreciate the fact that you’re going to be stuck with it because the cost of relocating is prohibitive.
There are many advantages to starting a law practice in a large, metropolitan area. As per Judge William Huss in Start Your Own Law Firm: A guide to all the things they don’t teach in law school about starting your own firm, (Illinois, U.S.A.: Sphinx Publishing, An Imprint of Sourcebooks, Inc., 2005), pp. 7-8:
Beginning a law practice in a large, metropolitan area has unique advantages and disadvantages. The advantages of a large city include the location of major courts and administrative bodies where the practice of law can be focused; large and easily accessible law libraries; a broad source of clients; and, easier client development due to the many ways of entertain and meeting clients.
However, it is much more difficult to determine the competition for the kind of practice that you want to begin. The number of lawyers is so large that you will have to join the sections of the local bar associations that relate to your practice in order to get some idea of who the practitioners are in that area. Frequently, only a portion of lawyers are active in their specialty section, making assessment of competition even more difficult for the beginning law firm.
In large, metropolitan areas, wages and expenses are higher. Rent, insurance, and professional services – such as accountants, insurance brokers, bookkeepers, and other specialists – will be more costly. Fees attorneys charge are higher in the metropolitan setting in order to provide for these increased expenses. Consequently, the cash flow in a firm located in such an areas has to be substantially higher than in a small town or medium-sized city.
In light of these insights, the ideal location for the law firm will be based on a number of factors, including:
- The law firm’s sustainable competitive advantage;
- Proximity to: the target market; major highways and intersections; existing and potential clients; partners/shareholders and employees; government agencies; existing and potential competitors; and the Courts.
- Internal considerations such as: electrical outlets/phone jacks; sufficiency of space; lighting and flooring; the need for renovation; and cleaning.
- External considerations such as: accessible and sufficient parking; neighbourhood and building noise; entrance to the building/security; neighbourhood demographics;
- Realty/business taxes; and the relevant zoning/by-law restrictions; and
- The terms of the lease, including: service contract; costs (i.e. net and gross lease); insurance requirements; and termination of the lease.
In what is to follow, I’ll touch briefly on some internal and external considerations.
With respect to internal considerations, the question often comes up: “How much office space does a lawyer require?” The general rule of thumb is about 400-600 square fee of space per lawyer which includes 150 square feet for the lawyer, 150-200 square feet for the secretary, and 100-200 square feet for reception, photocopier, fax, storage, etc. (see Wendy E. Oughtred, Going It Alone: A Start Up Guide for the Sole Practitioner, (Aurora, Canada: Canada Law Book Inc., 1995), p. 64; and Felicia S. Folk, Getting Started: Opening Your Law Office (updated September 2004), Law Society of British Columbia, p. 12: online: Law Society of British Columbia.
As Wendy E. Oughtred notes in Going It Alone: A Start Up Guide for the Sole Practitioner, (Aurora, Canada: Canada Law Book Inc., 1995), pp. 60-66, external considerations are important because they touch on the law firm’s sustainable competitive advantage, public image, accessibility to clients, and business/realty tax considerations. Adequate and accessible (and hopefully inexpensive) parking should be located nearby. Parking spaces should be made available as part of the lease. Parking lots can be prohibitively expensive (e.g. downtown) to certain clients and proximity next to them may be noisy and distracting. On the issue of noise, the building’s interior may not be noise-proof and sounds (e.g. walking, talking, elevators moving, etc.) may permeate through the office, causing significant distractions. Neighbourhood noise is also an important factor.Worth mentioning here is that footsteps on wooden floors are very loud. Being close to a busy road or major intersection may generate a lot of noise. Construction, schoolyards, and shopping areas all have the potential to generate a lot of unwanted noise. If an office is located higher up in a building, noise may be less of an issue. The entrance to the building should be attractive and well maintained. There should, ideally, be some kind of security in place. Insurance is no answer to insufficient security. Outsiders should not be able to gain access to the law firm’s office after hours and on weekends. It’s a costly mistake not to have sufficient security in place. The law office should fit with the neighbourhood demographics. For example, if the law firm’s objective is to be easily accessible to low and middle-class individuals facing family and criminal law issues, then the law firm should be located in a suburban strip mall or small building and close to recreation centres and courthouses or government buildings. On the other hand, if the law firm is going to cater to middle and upper-income individuals and small and medium-sized business run by persons of a certain ethnic descent, then the law firm should be situated in a modern or upscale office building in the heart of that ethnic community. Realty and business taxes affect both the law firm and its clients’ bottom lines.
With these things in mind, happy office hunting…
