Jack Hagel, Staff Writer
The Raleigh branch of law firm Ward and Smith is bucking a recent trend.
Two Raleigh law firms -- Poyner & Spruill and Williams Mullen -- are planning to move from the suburbs to RBC Plaza in burgeoning downtown Raleigh.
But Ward and Smith last week moved from its tight digs in downtown's Two Hannover Square to more spacious ones near the RBC Center in West Raleigh.
The firm is leasing about 25,000 square feet on the top floor in Wade II, a Lichtin Corp. building at Wade Avenue and Edwards Mill Road. "We needed more room, and we'll have more easily accessible parking," says Charles Ellis, a managing partner in the firm's Greenville office.
The law firm, which also has offices in New Bern and Wilmington, moved to Raleigh about 15 years ago, mostly to serve financial clients. But it has expanded into intellectual property, securities and technology work. The new office is closer to several tech clients, Ellis says.
The Raleigh office now has about 14 lawyers, 10 paralegals and 20 other staff. The firm is hiring several more lawyers over the next few months. "We are making a major commitment to the Raleigh market," said Jim Verdonik, a securities lawyer who joined the firm last year.
Professional-services firms have migrated to West Raleigh, seeking a central location with better access to other parts of the region.
The submarket has become the region's tightest outside of central Raleigh. At the end of June, about 7.2 percent of West Raleigh's 5.1 million square feet of offices were empty. That's down from 16.8 percent two years ago, according to data from Highwoods Properties.
Could others join Ward and Smith in the 'burbs?
Mike Harris, Highwoods' chief operating officer, told Wall Street analysts during a July 30 conference call that law firms have been merging, consolidating and growing in Raleigh.
And with limited space downtown, he seemed to hint that someone could be pushed out.
He's no doubt hoping for candidates to fill space to be vacated by William Mullen in Highwoods Tower I in northeast Raleigh. "As these firms start looking outside, this position, this building, is well positioned to garner one of these firms as I look at it," Harris said during the call.
But Highwoods would have to contend with Lichtin, which has been able to lure several law firms to its West Raleigh buildings.
Hutchison Law Group helped anchor Lichtin's Palisades II building on Trinity Road in 2005.
A year later, Cranfill, Sumner & Hartzog agreed to move out of 225 Hillsborough St. in downtown into 50,000 square feet at Wade I, which opened this year. The 100,000-square-foot building is about 85 percent leased.
The Ward and Smith deal brings occupancy of the 100,000-square-foot Wade II to about 50 percent. That makes Lichtin more comfortable with moving forward with the third of five proposed Wade office buildings.
The company hopes to break ground before the end of the year, said Karen Lichtin, executive vice president of Lichtin Corp. It would take about 10 months to compete.
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Staff writer Alan M. Wolf contributed to this report.