Login
Bakers takes stock of Brisbane market
One year after opening its Brisbane office, global firm Baker & McKenzie believes Brisbane lawyers are facing economic challenges – but also opportunities.
Stefanie Garber
Baker & McKenzie opened its Brisbane office in July last year, under the guidance of former Herbert Smith Freehills partner Philip Christensen.
“The coal mining industry is clearly going through a difficult time – there isn't a lot of acquisition activity there,” he said. “Foreign investment and general investment in the coal sector is low. That used to occupy a whole lot of people and it doesn't any more.”
Mr Christensen also pointed to easing legal activity on the Curtis Island coal seam gas project after a flurry of work in recent years.
However, he suggested Baker & McKenzie’s relatively small size in Brisbane may have been a strength in tough economic times, describing the firm as “lean and mean”.
“We're still seeking to grow – we're probably one of the few law firms trying to do that. But then again, we've come off a fresh start so we don't have a big legal infrastructure to service, whereas others may.”
The Brisbane office now has five partners and 15 fee-earning lawyers, he said, including former Allens competition specialist Jo Daniels and former Clayton Utz partner Darren Fooks.
Mr Christensen suggested being part of a global network also protected the firm against local slumps.
“When have the international network that Baker and McKenzie have, we're to a significant degree insulated from the economic doldrums,” he said.
Nonetheless, he believes there are several “bright spots” in the Brisbane market, particularly property and agri-business.
“There's a lot of cranes on the horizon and we're going to see more, both in residential high-rise blocks and office buildings,” he said.
Agri-business is also likely to remain strong, with Mr Christensen expecting that demand would only grow over coming years as developing nations’ appetite for high-quality produce grew.
“We're seeing a lot of interest from all around the globe,” he said. “That's not a bubble – I think that's a long term trend.”
Infrastructure projects could also be an exciting prospect, he suggested, despite the Palaszczuk government’s anti-privatisation platform.
“While traditional models like the public-private partnership in their simplest form might not be attractive, I'm sure investment banks and others will work out more clever ways of achieving a value proposition for government and investors. I think the Queensland Government would be receptive to that.”
Overall, in changing economic circumstances, Mr Christensen believes firms needed to seek out diversified practice areas.
“I've been around a long time, I've seen good times and bad times, and I think the important thing is to have a balanced portfolio that your office is working in. Typically when one is subdued, the other becomes a bright spot.”
