Dallas is moving closer to securing a major regional hub for Morgan Stanley after the City Council approved an $18.5 million incentive package and additional tax abatements to support the firm’s expansion in Uptown. The financial giant plans to establish a new two-phase office complex at the corner of McKinney Avenue and Fairmount Street, marking a significant investment in the city’s growing financial services sector.

Under the agreement, Morgan Stanley will lease approximately 700,000 square feet in a new high-rise office tower, known as Uptown Tower, for a term of 16 years. The expected occupancy date is set for 2031. In the interim, the company will lease around 255,000 square feet in downtown Dallas’ Fountain Place skyscraper, located at 1445 Ross Avenue, for just over four years. The initial relocation to Fountain Place will accommodate 1,500 jobs by 2031, while the new Uptown facility is projected to house 3,800 employees by 2035, with potential for further expansion.

The development will involve nearly $97 million in investment at the Fountain Place site and over $684 million in the Uptown building, with the overall project value estimated at more than $1.3 billion following an additional $650 million investment by the developer. Both properties have been designated as neighborhood empowerment zones, allowing Morgan Stanley to benefit from significant tax incentives—including a 90% tax abatement on Fountain Place property for five years, and a similar abatement on the new Uptown site for a decade. The city anticipates forgoing approximately $4.8 million in tax revenue as part of the package.

Dallas city officials also pledged support in nominating Morgan Stanley's downtown development for a state enterprise zone and assisting with a “triple jumbo” enterprise zone designation for the Uptown project, a status reserved for large-scale developments that create at least 500 jobs. The average annual wage for positions associated with the project is forecasted to be $128,000. City leaders estimate the initiative will generate nearly $65 million in net economic impact.

Morgan Stanley’s decision follows a narrowed search between Dallas and Alpharetta, Georgia—the latter city hosting more than 3,000 of the firm’s employees and representing one of its largest employment bases outside New York. The investment aligns with Dallas’ ongoing efforts to bolster its financial district—commonly dubbed “Y’all Street”—anchored by Uptown and nearby Victory Park. Recent moves by other major banks include Goldman Sachs’ $709 million campus near Victory Park, JPMorgan Chase’s expansion on Akard Street, Bank of America’s forthcoming office relocation to a new Uptown skyscraper, and Canada's Scotiabank bringing 1,000 jobs to the area.

The McKinney Avenue location is owned by CBRE’s Trammell Crow Company, which had previously planned to develop its headquarters on the site but halted construction despite securing zoning approval and incentives. This site, near the former Truluck’s restaurant at Maple Avenue, will now serve as the future home of Morgan Stanley’s hub.

The Fountain Place tower, currently about 45% leased with substantial available office space, stands to benefit from Morgan Stanley’s interim occupancy, possibly revitalizing downtown’s central business area. The project coincides with other corporate relocations such as AT&T’s announced move to a new Plano campus, reflecting broader shifts in North Texas’ commercial real estate landscape.

Construction on the new Uptown Tower is expected to begin in the fall of 2026, contingent on the finalization of the incentive agreement. The deal represents a critical step in Dallas’ efforts to attract and retain major financial institutions as part of its long-term economic development strategy.