Dallas officials announced that Morgan Stanley will locate its new operational hub in the city, a decision that follows a competitive bid process with Alpharetta, Georgia. The financial firm plans to invest more than $1.3 billion in construction, real‑estate improvements and related spending, with the potential to create up to 4,800 jobs by 2039.
Incentive package and lease details
The Dallas City Council unanimously approved an incentive package that includes up to $18.5 million in grants and business personal‑property tax abatements—90% for the temporary site and 10% for the permanent site. The abatements run for five years at the temporary location and ten years at the permanent building.
In July, Morgan Stanley signed a roughly five‑year lease for 123,000 sq ft at Fountain Place, 1445 Ross Ave., with an option to expand. The city agreement envisions a 52‑month lease for about 255,000 sq ft at that address, plus $96.9 million in real‑estate and property‑improvement costs during 2026‑2027.
Long‑term build‑to‑suit office
For the permanent phase, the firm will enter an approximately 16‑year lease for a 708,000‑sq ft build‑to‑suit office at 2401 McKinney Ave., slated to begin in 2031. Morgan Stanley is expected to spend roughly $684.2 million, while the developer or landlord will contribute about $650 million for the building’s core and shell.
Job creation timeline
City records show a more gradual employment schedule than some reports have suggested. Between 2027 and 2031, Morgan Stanley plans to relocate from outside Dallas or create about 1,500 jobs. After the permanent hub opens, the company would add roughly 2,200 positions by the end of 2035, bringing the site total to 3,800 jobs, including 115 positions moved from elsewhere in the Dallas market. An additional 1,000 jobs could be added by the end of 2039, reaching the projected 4,800‑job figure.
The average annual wage for these positions is estimated at $128,000 before benefits.
Sign approvals and construction start
City staff recommended approval of four back‑lit channel‑letter signs bearing the Morgan Stanley name. The Special Sign District Advisory Committee approved the 366.3‑sq‑ft southeast sign 5‑0 on July 14, and the City Plan Commission approved all four applications on August 6.
Demolition crews have begun clearing a former Gold’s Gym on McKinney Avenue to make way for the tower. The city’s projected schedule calls for construction to start this fall, with operations slated to begin in 2027.
Mayor’s remarks
Mayor Eric L. Johnson (R) praised the deal as evidence that Dallas’ pro‑business environment is succeeding. “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,” Johnson said.
City staff estimate the incentive agreement will generate $64.9 million in net benefits to Dallas over its term, or $37.4 million in present‑value terms, with grants and abatements tied to job, spending and project milestones.
The announcement follows a broader trend of Wall Street firms expanding in Texas after New York City elected a democratic‑socialist mayor in 2025. While Morgan Stanley has not publicly linked its Dallas decision to that election, the timing has drawn attention.
Original reporting: The Dallas Express — read the source article.
