Wolters Kluwer LegalVIEW Insights: Rate Growth Moderating at the Top, Volatile at the Extremes

Wolters Kluwer's LegalVIEW Insights Volume 2025-2 — drawing on more than $200 billion in invoice data — finds rate dynamics fragmenting along two axes: tier and client size. Top-25 firm partner rate growth cooled to 6.3% in 2025 from 10.4% in 2024, driven by heightening client scrutiny. New York City maintains the highest rates (partners averaged $1,972; associates $1,214), while Cincinnati, Portland, and San Diego posted double-digit increases driven by local demand. Rate volatility is sharpest at the extremes of corporate revenue: the largest companies saw increases drop from 15.6% to 9.9%, reflecting significant negotiating power on volume work — while they pay above-mid-market rates for niche Am Law 101–200 firms. The 2026 outlook: tiered, regional, and increasingly AI-contingent.