Business
Wolters Kluwer Study Sets the Stage for 2026 With Sharp Contrasts in Regional Law Firm Rates and Shifting Negotiation Dynamics
HOUSTON, December 22, 2025--Wolters Kluwer Legal & Regulatory’s ELM Solutions business today published the most recent installment of its award-winning LegalVIEW Insights report series, which finds the legal market at a crossroads where rate volatility, reputational premiums, and the accelerating impact of AI are poised to reshape the rules of engagement in 2026.
About this update from Wolters Kluwer N.v.
[{"type":"text","content":"Insights from the LegalVIEW database suggest rate volatility is most pronounced at extremes of corporate revenue","length":112,"tagName":"p","attribs":{}},{"type":"text","content":"HOUSTON, December 22, 2025--(BUSINESS WIRE)--Wolters Kluwer Legal & Regulatory’s ELM Solutions business today published the most recent installment of its award-winning LegalVIEW Insights report series, which finds the legal market at a crossroads where rate volatility, reputational premiums, and the accelerating impact of AI are poised to reshape the rules of engagement in 2026.","length":386,"tagName":"p"},{"type":"text","content":"Jennifer McIver, Legal Operations and Industry Insights expert at Wolters Kluwer ELM Solutions: "Expect rate dynamics to remain anything but uniform. Legal teams will need to anticipate tiered and regional shifts, as well as the growing impact of AI if they want to keep costs under control and partnerships strong in 2026."","length":334,"tagName":"p"},{"type":"text","content":"Other highlights from LegalVIEW Insights Volume 2025-2 include:","length":63,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"For services rendered in the first half of 2025, partner rate growth felt some moderation across law firm tiers, with the top 25 firms dropping to a 6.3% mean increase in 2025 from 10.4% in 2024, and mid-tier firms seeing similar declines. This cooling trend could be driven by heightening client scrutiny, signals shifting negotiation dynamics despite continued headline increases.","length":382,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Despite slower overall growth, New York City maintains the highest partner and associate rates, with partners averaging $1,972 and associates $1,214. Meanwhile, cities like Cincinnati, Portland, and San Diego posted double-digit increases, underscoring sharp regional contrasts and uneven market dynamics propelled by local demand in addition to competitive pricing.","length":366,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Rate volatility appears most pronounced at the extremes of corporate revenue, with increases for the largest companies dropping to 9.9% from 15.6% and the smallest falling to 10.4% from 12.3%. Mid-market bands remained steady, suggesting that negotiation leverage and market forces are weighing more h...