Small Cities Still Require Big Strategy: What Law Firms Should Consider Before Opening in Smaller Markets

In recent years, more law firms have expanded into smaller regional markets, like Salt Lake City, Nashville, and Denver. These cities often offer a compelling mix of factors for firms including proximity to emerging client bases and industries, lower operating costs, and access to local talent.

The question for firms is whether their strategic needs in a market can and should be met by opening an office. When executed right, it can deepen client relationships and position a firm for long-term success. When done too hastily or opportunistically, it can drain resources and dilute a firm’s culture. The question isn’t just whether to enter a smaller market, it’s how, why, and what it takes to succeed. 

For firms considering the value of opening offices in smaller cities, the considerations for doing so revolve around three interconnected factors: (1) is there a strategic fit for doing so; (2) will there be a cultural fit; and (3) is there an economic fit?