Dallas city officials have approved an $18.5 million incentive package aimed at attracting Morgan Stanley to build a new regional office tower in the city. The Dallas City Council voted unanimously Wednesday to offer the New York–based financial firm a special economic grant and up to ten years of property tax abatements. In return, Morgan Stanley would develop a $1.3 billion office project downtown and relocate nearly 5,000 jobs to Dallas.
The proposed expansion, outlined in a municipal filing, marks a significant effort to further establish Dallas as a major hub within the growing Texas financial corridor known as “Y’all Street.” The bank has yet to make a formal commitment but has narrowed its search for a new U.S. operational hub between Dallas and Alpharetta, Georgia, with local officials hoping the incentives will secure the deal.
If finalized, Morgan Stanley would initiate a two-phase move, first leasing approximately 255,000 square feet at Fountain Place on Ross Avenue while constructing a 708,000-square-foot tower near McKinney Avenue, scheduled to open in 2031. Investment figures include nearly $97 million for the temporary facility and around $684 million for the permanent tower, with the developer contributing an additional $650 million toward the building’s structure.
The company anticipates staffing about 1,500 employees by 2031, expanding to 3,800 by 2035, with the workforce potentially reaching 4,800 by 2040. Job roles will span wealth management, compliance, risk management, legal, technology, and operations, offering an average pre-benefit salary of $128,000 annually. City staff project the net economic impact over the life of the agreement to be $64.9 million for Dallas.
Dallas Mayor Eric Johnson framed the deal within the context of broader economic and political shifts, citing recent victories by far-left politicians in New York City’s Democratic primaries as a factor accelerating the migration of financial services jobs to Texas. Johnson expressed optimism about Dallas’s pro-business environment, emphasizing the city’s appeal amid New York’s “tax-and-spend left-wing policies.”
However, some voices in New York have expressed concern about the outflow of jobs. Steven Fulop, CEO of the Partnership for New York City, criticized the city's governance approach, suggesting that New York cannot assume its financial sector jobs are guaranteed as competitors like Dallas actively recruit them.
Morgan Stanley’s potential relocation follows a trend among major financial firms expanding their presence in Texas. Goldman Sachs is developing an 800,000-square-foot campus in Dallas, expected to open in 2028, and JPMorgan Chase now employs more people in Texas than in New York. The ongoing shift highlights growing competition between financial centers as companies seek favorable economic climates for growth and talent retention.