Weil’s Collapse Puts Big Law’s $35 Billion CMBS Footprint in Focus

0
25
Bar chart: CMBS office debt on buildings where each top law firm is a top-five tenant. Kirkland & Ellis $3.7B, Greenberg Traurig $3.5B, McDermott Will $3.0B, Weil Gotshal $2.6B. Total $35 billion across 99 buildings.
Source: CRED iQ proprietary loan-level analytics, November 2026.

Weil, Gotshal & Manges has been in the General Motors Building on Fifth Avenue since the tower opened in 1968. It is still the largest tenant, with 447,075 square feet leased through August 2034, and when the building’s $2.3 billion loan was securitized in 2017 the firm paid 19.4% of its gross rent. That loan, split across BXP 2017-GM and 10 conduit deals, matures in June 2027. With Weil now winding down, the building’s lenders face a refinancing question they did not expect a year ago.

Weil is not an isolated exposure. CRED iQ found top-100 law firms among the five largest tenants in 99 office buildings backing $35.4 billion of CMBS debt in 192 deals. In 34 of them, carrying $15.9 billion, a law firm is the single largest tenant. The 69 firms occupy 16.5 million square feet in these buildings, and 55% of the debt is in New York.

Weil’s footprint shows how one firm can reach several deals. In Dallas it is a top tenant at The Crescent, refinanced in March through CRSNT 2026-MOON. It had signed an early renewal there at $54 per square foot, triple net, from August 2028 to 2039: a 67% increase over its in-place rent of $32.21.

Law firmBuildingsFirm’s space (sf)CMBS debt on those buildings
Kirkland & Ellis51,145,234$3.7B
Greenberg Traurig5235,989$3.5B
McDermott Will & Schulte2206,564$3.0B
Weil, Gotshal & Manges2518,801$2.6B
Paul Hastings4456,395$2.2B
Seyfarth Shaw3353,682$1.9B
Cravath, Swaine & Moore1519,415$1.9B
Debevoise & Plimpton1530,722$1.8B
Sidley Austin3173,323$1.6B
Jones Day5726,997$1.3B
Top-100 law firms with the most CMBS office exposure, by debt on buildings where the firm is a top-five tenant

The Trophy Towers Are Locked Up

Big Law’s newest leases run longer than the loans. Cravath, Swaine & Moore’s 519,415 square feet at Two Manhattan West runs to 2044, nearly eight years past the maturity of its $1.9 billion loan. Debevoise & Plimpton has 530,722 square feet at The Spiral through 2042, McDermott Will is One Vanderbilt’s largest tenant through 2042, and Paul, Weiss leases 765,956 square feet at 1345 Avenue of the Americas through 2047, 20 years after that loan matures.

Where the Lease Runs Out First

In 24 buildings carrying $5.8 billion, a top-100 firm’s lease expires before the loan matures. Ropes & Gray’s 345,413 square feet at 1211 Avenue of the Americas expire in March 2027, 17 months before the building’s $1.04 billion loan comes due. At 425 Lexington Avenue, the lender has trapped cash since the loan closed this year because Simpson Thacher & Bartlett, with 642,838 square feet, plans to leave when its lease ends in 2033.

Chart comparing law firm lease expirations with CMBS loan maturities at 15 office towers
Source: CRED iQ proprietary loan-level analytics, November 2026.

Fewer Defaults, Bigger Holes

Law-firm buildings default less often. 19 of them, with $3.2 billion of debt, are in special servicing: 9.0% of the balance, against 15.8% for CMBS office loans overall. But when a firm leaves, the hole is large. At the New York Times Building, Covington & Burling’s 197,450 square feet sit vacant; the $635 million loan defaulted at its December 2025 maturity, and Datadog has a right of first offer on the space. In Los Angeles, Skadden’s 107,058-square-foot lease at One California Plaza was set to end in November 2024, the month the loan failed to pay off at maturity. A receiver now runs the tower, which is 55.1% occupied.

Keeping the firms does not guarantee a healthy loan. At 51 W. 52nd St., Wachtell, Lipton extended to 2034 and Orrick expanded and extended to 2038, yet the loan is with a special servicer at 0.64 times debt-service coverage. In San Francisco, Kirkland & Ellis is the largest tenant at 555 California Street through 2030, but the building is 74.3% occupied, coverage fell to 0.47 times in June and the $1.2 billion loan matures in May 2027.

BuildingCityLaw firm tenant(s)Lease endCMBS loanLoan maturityStatus
One VanderbiltNew YorkMcDermott Will (199,320 sf); Greenberg Traurig12/2042$3.0B7/2031Current
General Motors BuildingNew YorkWeil Gotshal (447,075 sf)8/2034$2.3B6/2027Current
Two Manhattan WestNew YorkCravath (519,415 sf)3/2044$1.9B6/2036Current
The SpiralNew YorkDebevoise (530,722 sf)10/2042$1.8B1/2030Current
555 California St.San FranciscoKirkland & Ellis (274,765 sf)9/2030$1.2B5/2027Watchlist
200 Park Ave.New YorkGibson Dunn; Paul Hastings; Winston & Strawn (237,360 sf)8/2027 (Winston)$1.1B2/2035Current
1211 Avenue of the AmericasNew YorkRopes & Gray (345,413 sf)3/2027$1.0B8/2028Current
1345 Avenue of the AmericasNew YorkPaul, Weiss (765,956 sf)6/2047$650M6/2027Watchlist
New York Times BuildingNew YorkCovington (197,450 sf, vacant); Seyfarth Shaw9/2027$635M12/2025Special servicing
51 W. 52nd St.New YorkWachtell (252,270 sf); Orrick7/2034$386M10/2027Special servicing
425 Lexington Ave.New YorkSimpson Thacher (642,838 sf)10/2033$352M7/2028Watchlist (cash trap)
One California PlazaLos AngelesSkadden (107,058 sf); Locke Lord11/2024$287M11/2024Special servicing
Notable CMBS office loans with a top-100 law firm among the largest tenants

The Takeaway

Law firms sign long leases and pay their rent, which is why these buildings default less often. The risk is concentration: 27 of the buildings, with $10.5 billion of debt, have loans maturing by the end of 2027, the GM Building among them. Lenders will be asking whether the anchor firm is staying, moving to a new tower or, like Weil, going away.

Source: CRED iQ proprietary loan-level analytics, November 2026. Conduit and SASB/large-loan CMBS office loans outstanding as of the October 2026 remittance. Law firms = the 100 largest firms by revenue (2025 Global 200 ranking), matched to the five largest tenants reported for each property. CMBS debt = balance of the CMBS loans secured by each building, allocated by property for portfolio loans. Lease terms from servicer reports and offering documents; loan details from servicer commentary.