Dallas Approves $18.5 Million Incentive Package for Morgan Stanley's $1.3 Billion Office Tower
The move is seen as a continued effort by Texas cities to attract financial sector jobs from New York, citing concerns over progressive policies and taxes.
Dallas City Council unanimously approved an $18.5 million incentive package on Wednesday to encourage Morgan Stanley to build a $1.3 billion office tower in the city. The deal aims to secure a major regional operations hub for the New York-based bank, which would shift nearly 5,000 jobs to Dallas.
The incentive package includes a special economic grant and up to 10 years of property tax abatements for the financial institution. Dallas officials see this as a significant victory in their effort to attract Wall Street firms, capitalizing on concerns among businesses about what they perceive as "tax-and-spend" policies and increased regulation in some progressive-led cities.
Dallas Mayor Eric Johnson expressed his enthusiasm, stating, "Morgan Stanley’s engagement with Dallas speaks to the strength of our financial services ecosystem, and I look forward to welcoming the firm to Y’all Street. We have worked hard to make Dallas America’s most pro-business city."
Morgan Stanley has not yet formally committed to Dallas. The company is reportedly considering Alpharetta, Georgia, as its second finalist for the new U.S. operational hub. The incentives offered by Dallas are intended to sway the decision in its favor.
If Dallas secures the bid, Morgan Stanley plans a two-phase expansion. The initial phase involves leasing approximately 255,000 square feet at Fountain Place on Ross Avenue. Simultaneously, a new 708,000-square-foot tower is slated for construction near McKinney Avenue, with an expected opening in 2031. The bank plans to invest about $96.9 million in the temporary site and $684.2 million in the permanent tower, with the developer contributing an additional $650 million for the building's shell.
The projected job growth includes seating around 1,500 workers by 2031, expanding to 3,800 by 2035, and potentially reaching 4,800 by the end of the decade. These roles will span wealth management, compliance, risk, legal, technology, and operations, with an average annual salary of $128,000 before benefits. City staff estimate the net economic benefit to Dallas over the life of the deal at $64.9 million.
This potential move by Morgan Stanley is part of a broader trend of financial firms relocating or expanding operations in Texas. Goldman Sachs is currently constructing an 800,000-square-foot, $500 million campus in Dallas, expected to open in 2028 and consolidate over 5,000 employees. JPMorgan Chase now employs more people in Texas than in New York. Factors drawing these firms to Texas include the absence of a state income tax, specialized business courts, and a ban on financial transaction taxes.
Dallas officials have actively courted these companies. Mayor Johnson has previously remarked that the exodus of corporations from New York under Mayor Zohran Mamdani's administration "might be the best thing for Dallas business to ever happen."
The proposed Morgan Stanley site is located within the city's Downtown Connection tax increment financing district. If approved, construction could commence this fall, with operations beginning as early as 2027. Morgan Stanley's global headquarters will remain in Manhattan.