Morgan Stanley has chosen Dallas, Texas, for a significant expansion of its operations, planning to establish a regional headquarters and anchor a $1.3 billion skyscraper. The move is expected to bring as many as 4,800 jobs to the city by 2035, with an initial hiring target of 1,500 employees by 2031.
The investment bank's decision comes after Dallas city officials approved an $18.5 million incentive package in June. The jobs will cover a range of functions, including wealth management, compliance, risk, legal, technology, and operations, with an average salary of approximately $128,000 before benefits.
The new skyscraper, a 709,000-square-foot building located at 2401 McKinney Avenue, is slated for completion in 2031. The project involves the development of a new site, with demolition crews already working at the location. In the interim, Morgan Stanley will occupy about 255,000 square feet at Fountain Place on Ross Avenue, where interior renovations are underway.
This expansion marks a strategic diversification for Morgan Stanley, which will maintain its global headquarters in New York City. The move to Dallas is partly attributed to an evolving business climate in New York, with some corporate leaders expressing concerns over proposed stricter regulations and higher taxes under Mayor Zohran Mamdani. Dallas Mayor Eric Johnson has actively promoted the city's pro-business environment, positioning it as an attractive alternative.
Morgan Stanley is not the only major financial institution increasing its presence in Texas. Goldman Sachs is constructing an 800,000-square-foot campus nearby expected to house around 5,000 employees. JPMorgan Chase has also expanded its Texas workforce to exceed its employee numbers in New York, and Apollo has identified Texas as a key hub for its operations.
While the trend of financial firms relocating or expanding in Texas predates recent political shifts, factors such as the absence of a state individual income tax, lower operating costs, and business-friendly policies have drawn companies to the state. The contrast in political and economic approaches between Dallas and New York City has also become a notable factor in attracting these businesses.