Legal Talent Trends Shaping New York’s Commercial Real Estate Deals in 2025

New York’s commercial real estate market remains active in 2025, but deals are more complex than ever. Demand is surging for lawyers skilled in restructuring, creative financing, ESG compliance, zoning, and fast-paced closings. Legal talent isn’t just supporting transactions — it’s shaping how deals get done.

Over the past few years, New York’s commercial real estate (CRE) market has navigated interest rate hikes, shifting demand for office space, and uncertainty around property valuations. Yet one constant remains: deals keep getting done, and lawyers are at the center of how those deals take shape.

As someone working closely with firms and attorneys who live and breathe commercial real estate, I’ve noticed several key trends in legal talent and practice areas that are directly influencing how transactions unfold in today’s market.

Below are some of the themes I’m seeing right now in mid-2025, supported by what’s happening on the ground in New York City.

1. Restructuring and Workouts Are in High Demand

Higher borrowing costs and maturing loans have pushed many owners and investors into challenging territory. According to recent reports from Commercial Observer and Crain’s New York Business, CMBS delinquency rates have climbed, particularly in the office and retail sectors.

As a result, there’s been a surge in demand for attorneys skilled in workouts, loan modifications, and distressed asset acquisitions. Both borrowers and lenders want lawyers who understand litigation risk but can also craft practical solutions to keep projects afloat.

Even “healthy” deals are evolving. Many now include springing cash sweeps or performance covenants — provisions designed to proactively manage cash flow issues if market conditions worsen.

2. Creative Deal Structures Require Broader Skill Sets

Traditional acquisition financing isn’t as straightforward as it once was. Rising interest rates and cautious lenders have forced buyers and sellers to get creative. Many deals today involve:

• Preferred equity structures, helping fill funding gaps while avoiding new senior debt.

• Seller financing or mezzanine debt to bridge valuation differences.

• Joint ventures with complex waterfall distributions, especially when institutional investors partner with local operators.

These structures blur the lines between real estate, corporate, and finance law. Firms increasingly seek attorneys who can navigate this intersection, draft sophisticated agreements, and anticipate future disputes or tax implications.

3. ESG and Sustainability Are Moving from Buzzwords to Deal Drivers

Environmental, Social, and Governance (ESG) considerations have moved from the sidelines into the center of CRE deals, especially for institutional investors. The SEC’s new climate disclosure rules, finalized earlier this year, are reshaping how larger owners and REITs report emissions and climate risks.

Meanwhile, New York’s Climate Leadership and Community Protection Act (CLCPA) and the city’s Local Law 97 impose strict emissions limits on buildings, driving compliance work for lawyers advising developers, landlords, and lenders.

Attorneys are increasingly called upon to:

• Advise on green building certifications like LEED or WELL.

• Draft sustainability requirements into leases and loan agreements.

• Help clients navigate evolving disclosure obligations and avoid regulatory pitfalls.

Lawyers who can help turn ESG requirements into competitive advantages are seeing strong demand.

4. Zoning, Land Use, and Conversions: A Growth Area

Office-to-residential conversions remain one of the most talked-about topics in New York real estate. Governor Hochul and Mayor Adams have both championed initiatives to make conversions easier. Yet despite headlines, relatively few large-scale projects have crossed the finish line.

Why? These deals face significant hurdles, including:

• Zoning challenges, especially in Midtown Manhattan.

• Landmark preservation issues in older buildings.

• Affordable housing mandates that impact financial feasibility.

• Complex building code and safety requirements.

As a result, attorneys specializing in land use and development are busy conducting feasibility studies and shepherding projects through city and state approval processes. Even if only a fraction of these potential conversions come to fruition, the legal work around them remains substantial.

5. Speed Matters More Than Ever

One subtle but crucial shift in the current market: when deals do happen, timelines are often compressed. Volatility has made buyers and sellers eager to lock in pricing quickly, while lenders are cautious about leaving commitments open for too long.

Law firms capable of executing due diligence swiftly — and anticipating obstacles before they derail closings — are becoming indispensable. Deals that once dragged on for months are now expected to move far faster, putting additional pressure on legal teams to deliver.

Bottom Line

Despite headwinds in certain asset classes, New York’s commercial real estate market remains active, if more complex than before. The lawyers shaping these deals aren’t just supporting transactions — they’re helping redefine how those transactions get structured and completed.

As we move through the second half of 2025, legal talent trends are proving to be more than just a side note. They’re playing a central role in how New York’s commercial real estate deals get done — and who’s getting them across the finish line.