State of the Legal Market in Boston
Boston remains one of the most significant cities in America’s legal market. Few arguments can be made against the longstanding status of the Boston legal market as it has been the second largest legal market in the country for over a hundred years. Boston has long been the number two legal hub, behind only New York City, since the late 1800s. Today, Boston continues to be among the top three with New York City and Los Angeles.
The factors that have traditionally made Boston such a crucial legal market remain the same, but the context in which those factors exist has undergone a sea change over the past twenty years. New England’s population density continues to rise and flourishes with a diversity of socioeconomic backgrounds. Over the past decade and a half, from 2000 to 2014, Boston experienced a 75% increase in millennials, outpacing the national average of 39%. This highly educated workforce is concentrating in the Boston area as renowned schools like Harvard and MIT continue to churn out graduates in droves, many of whom opt to stay in the area.
There are two signs for potential growth in the region. First, there has been an influx of technology companies in the area and an existing talent pool which offers them a market from which to draw their employees. Secondly , manufacturing has also made a recent re-emergence in the area, particularly within the healthcare industry.
One of the unique features of Boston over the years has been theatrical productions. Last year, the Boston Globe noted that between 20-30 million people attend theater productions in Boston each year. This number is remarkable given the size of the city. Few cities can boast that level of interest in theater and other forms of stage performance.
Legal firms naturally follow litigation activity and the number of large Boston law firms in the area has increased as a consequence. In addition, the makeup of the larger law firms in the area has become less reflective of the population size of the area in 1800 (about 18,000) and considerably more representative of its current population of about 690,000. In fact, by 2010 Boston had almost as many large firms as it did in 1980 when its population was about 600,000.
Boston has proven to be the bedrock for large law firms in New England. Its legal history is steeped in its founding. Yet its contemporary importance is due to a number of factors, mainly centered around its educational institutions. Thanks to the influx of technology and manufacturing companies the last decade, it is likely that Boston’s legal market will continue to flourish.
Top Large Boston Law Firms
The Boston area has its share of large law firms, typically defined either by revenues or by the number of attorneys. Among the largest firms in Boston, by revenue, are:
- WilmerHale, 948 attorneys, $1,588,000,000
- Ropes & Gray, 1,160 attorneys, $1,470,000,000
- Mintz Levin, 811 attorneys, $778,000,000
- Goodwin Procter, 971 attorneys, $709,500,000
- Goulston & Storrs, 232 attorneys, $265,515,000
Among the largest firms in Boston measured by the number of attorneys are:
- Nixon Peabody, 1,058 attorneys, $1,227,355,000
- Goodwin Procter, 971 attorneys, $709,500,000
- WilmerHale, 948 attorneys, $1,588,000,000
- Greenberg Traurig LLP, 852 attorneys, $1,210,000,000
- Ropes & Gray, 1,160 attorneys, $1,470,000,000
With such large firms operating in Boston, it’s not surprising that some big firms have closed their offices. K&L Gates shuttered 2 of its 4 offices in the city and Ballard Spahr did the same with its 2 offices in Boston.
Services Provided by the Largest Firms in Boston
Among the services offered by the largest firms in Boston, one area of concentration is multifamily development work. Choate Hall & Stewart has a "top tier" ranking for its "leading real estate practice, building on the firm’s strong reputation in the Boston metropolitan area to become a powerhouse throughout New England," according to Chambers. Meanwhile, Nutter, with its "market-leading practice in real estate development projects," emerges as the firm that offers "strong expertise in affordable housing projects." K&L Gates provides land use and zoning, planning, and permitting services, while Nixon Peabody handles regulation issues, among others, for clients in the telecom and utilities industries.
Intellectual property services are offered by several large firms in Boston, including Edwards Wildman Palmer, whose "nationally recognized" IP practice works in numerous areas, including litigation and trademark clearances and registrations. "With expertise across all IP practice areas, Edwards Wildman also assists clients with state-of-the-art applications of digital rights management, licensing and management of IP portfolios, patent landscaping, and litigation support," states Chambers. Fish & Richardson P.C., also "highly regarded in the field" according to Chambers, "provides the full range of complex IP services to the high-technology and life sciences industries." Hamilton Brook Smith Reynolds "offers a range of technology, litigation and IP services, and represents an array of companies from start-ups to Fortune 500 companies and industry organizations," per Chambers. Locke Lord also claims to provide "full support" and "a wide range of litigation services related to IP."
Piper Jaffray, a "highly respected firm" according to Chambers, "provides strong litigation support to private equity and venture capital firms in the Internet software, hardware and biotechnology sectors, which are core industries for this Boston-based office," according to Chambers. "Acting on patent infringement claims and product liability issues, the firm is particularly active in the media, publishing and advertising sectors."
Culture and Work Environment
When assessing a law firm as a potential employer, it is vital to consider not just the practice areas and attorneys, but also the cultural and workplace environment. In the competitive landscape of Boston law firms, it should come as no surprise that diversity and inclusion, innovation, and employee engagement are the three main drivers for high performance and employee retention.
Diversity and inclusion initiatives at Boston law firms have expanded over the past decade and continue to be a priority for most of the firms listed among the largest in the city. Mooney reviewed the diversity statistics available from the Mass Lawyers Weekly’s Law School Diversity Report and found that while top firms like Mintz Levin had 28.8% female attorney hires in 2017 and Sullivan & Worcester had 47.6% female hires in the same period, some firms like WilmerHale had a performance rating of 1 for diversity efforts and many others were rated 2 out of 5 for diversity and inclusion of gender diverse lawyers.
Nearly all of the largest law firms in Boston provide opportunities for remote work and flexible schedules. In fact , many firms have provided employees the option to work from home for quite some time, including some who have been a leader in remote working opportunities for many years. This flexibility is important in today’s work environment where work life balance has become critical to recruiting and retaining employees in all industries.
Employee perks also play a large part in attracting and retaining employees among the largest Boston law firms. Benefits like 401(k) matching and student loan debt repayment assistance programs can make a difference for many employees. While benefits other than salary are usually not publicly available, when researching firms and discussing these topics with a recruiter, be sure to inquire about the benefits options they provide to employees and how they are adapted to the age and needs of the firm’s employees.
Impact of the Local Economy and Community
The influence of Boston’s largest law firms extends well beyond their business and organizational accomplishments; these firms serve a crucial role in the local economy and community. With their significant presence in the region, these firms not only support the value of the legal industry sector but also create jobs, drive local business, and give back to the community through charitable programs and events.
The presence of a large law firm in a city like Boston is indicative of a strong legal market, and its impact reverberates throughout the economy. Big law firms employ many individuals — partners, associates, paralegals, and administrative staff — which creates a demand for office space, support services, and more. In addition to their direct economic contribution, the network of individuals formed as lawyers, staff, family, and friends is substantial, and this can also result in numerous indirect benefits for the local economy.
The collective role of the largest law firms in Boston is also felt strongly within the community by their active participation and support of numerous charitable initiatives and events each year. From pro bono work to partner and staff fundraising campaigns, the largest law firms are often the first to step up and answer the call to help those in need or support a cause seeking a remedy for a societal challenge.
Boston’s law firms are often downtown at noon time, especially on Fridays, to contribute to charitable causes like the Friday Food Drive in the Financial District, the Boston Food Truck Festival at Dewey Square Park or other charitable activities like the annual Share Dinner, which is an event driven by one firm’s commitment to feeding the homeless, offering warm meals, personal care items, and the opportunity to receive vital social service referrals and support.
The influence of the largest Boston law firms on the city and its individuals isn’t limited strictly to annual events either. Several of these firms are directly responsible for encouraging and sponsoring their employees and their families, clients, and others in their communities to get involved with several organizations that lend a helping hand in a variety of ways. From sponsoring PLATFORMS for Change, an initiative aimed at breaking down the barriers to women’s success by connecting, educating, inspiring, and supporting women attorneys in the late stages of their careers, to providing a volunteer day that allows employees to dedicate a workday each year to a charitable organization they’re passionate about, several of the largest law firms in Boston have contributed and continue to expand their roles as institutions founded on an unwavering commitment to serving the needs of their local community.
Trends for Large Boston Firms
As we look to the future of large law firms in Boston, several trends come to the fore. The most significant will no doubt be the continued and accelerated disruption that is unsettling all professional services firms. The emergence of AI and machine learning, better known as legal tech, will continue to replace many hourly rate tasks now performed as a part of legal discovery and research. Contract lawyers will have increasing difficulty competing with legal tech in the years ahead.
The concept of value billing is also fast gaining traction. Large legal departments now routinely ask for alternative fee arrangements (AFAs) such as fixed fees for specific projects, annual fixed fees for all legal work handled by a particular firm and annual retainer agreements for fixed monthly or quarterly sums with annual true up/down calculations. It is hoped that AFAs will align the interest of large law and corporate legal departments since both parties should be on the same side of the profit equation; however, there is much skepticism about whether large law firms can efficiently price legal work. AFAs will become the norm in five to ten years.
Other trends are likely to affect large law in Boston. As previously reported in this blog , Schneck & Shing, a Boston based alternative legal services provider, entered the Boston market in October 2017. Other law firms are likely to follow suit. Firms that allow legal tech, outsourced contract attorneys, AFAs and like measures to lower the cost of legal services will be successful in business development going forward. Firms that do not adapt to these and other trends will likely find the going tough for years to come.
The one exception to the forgoing is a mega merger lineup that could see a Boston-based law firm create a market leader in Boston. The combination of Holland & Knight, which has the largest headcount in Boston, with an equally large headcount firm such as Dentons could create a power player that could neutralize competitive forces that would otherwise threaten Holland & Knight’s market dominance. Such a mega merger could also present a real challenge to Wilmer Hale what with the enhanced headcount and geographic coverage. The future of large law in Boston will be interesting indeed.