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Minneapolis-St. Paul

2022

Methodology

The firms featured in this report have been identified through

ALM Intelligence¡¯s NLJ 500 survey. This annual survey ranks the

largest 500 US law firms by total number of full-time equivalent

(FTE) attorneys

The NLJ 500 includes a firm breakdown of the FTE attorney

headcount in Minneapolis through FY 2021. This forms the

underlying data used to formulate the analysis, trends, and

rankings that feature in this report

For this study, a comparative analysis has been made between

firms headquartered in Minneapolis and those which have their

largest office in Minneapolis (but are not headquartered in the

city) versus those firms headquartered outside of Minneapolis

If you have any questions about this methodology or this report,

please get in touch with Dan Masopust at dmasopust@

ALM Intelligence | Minneapolis Market Report | 2022

Executive Summary

The Twin Cities legal market

consists of more than

2,200 attorneys

spread across

45 NLJ 500 firms

More than 1,700 attorneys derive from the

15 NLJ 500 firms with their largest office in

the market

The number of attorneys at large law firms in the MinneapolisSt. Paul market has remained essentially flat over the past five

years. However, this does not tell the whole story of this

evolving legal market

Many of the city¡¯s largest- and longest-operating law

firms have felt pressure from larger firms entering

the market in recent years, forcing them to merge

with other regional firms

The Minneapolis-based firms who completed these mergers all

contracted their attorney footprint in the city by an average of

19%, whereas outside firms establishing an office in the area

have grown their local presence steadily

ALM Intelligence | Minneapolis Market Report | 2022

Executive Summary

Law Firms are attracted to Minneapolis-St. Paul because of the strong regional

economy, which boasts a large Fortune 1000 client base and a growing start-up

market. The metropolitan area is home to 21 F1000 companies, including 16

companies in the Fortune 500 and several of the largest private companies in the

US. Statewide, 18 Fortune 500 companies are headquartered in Minnesota, the

ninth-highest concentration in the US

Companies driving strong growth include Target, Sleep Number,

Best Buy, and UnitedHealth Group. Minnesota is also home to a

rapidly growing start-up environment, with more than $4B in

venture capital investment poured into Minnesota-based

companies since 2019. From 2016 to 2020, VC investment in

Minnesota grew 208%

Why is the

Twin Cities an

attractive

market for

law firms?

Minneapolis-St. Paul remains affordable to rent and buy real estate relative to

other major metropolitan areas. The allure of a lower cost of living, combined with

high employment rates and many prestigious universities in the Twin Cities, has

resulted in a highly educated workforce that chooses to live and work in the area

ALM Intelligence | Minneapolis Market Report | 2022

Executive Summary

What are

some

challenges

for Twin

Cities

locations?

Challenges to operating in Minneapolis-St. Paul includes increased competition for

business from clients that are increasingly consolidating the use of outside counsel

alongside the ongoing entry of large national law firms

The growing demand to provide clients with diversified legal services

with a national or multinational presence has driven many of

Minneapolis¡¯ largest- and longest-operating law firms to merge with

other regional, mainly midwestern, firms in recent years

From a law firm perspective, the overhead costs of operating in Minneapolis-St.

Paul remains much lower than most large legal markets, with average office rent

prices of less than $30 per sq. foot* and average partner compensation of

$650K**

However, the disparity in partner compensation compared to larger Midwestern

markets, such as Chicago ($860K), presents a challenge for Minneapolis law firms

in recruiting and retaining talent

*Data sourced from CommercialCafe

**Data sourced from 2020 MLA Partner Compensation Survey

ALM Intelligence | Minneapolis Market Report | 2022

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