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Good morning. Morgan Stanley is considering a $1.3B office tower in Dallas to consolidate operations and expand its footprint in Texas. The project could house up to 4,800 jobs and depends on city incentives and final site decisions, with Alpharetta also in contention.
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Texas Tower
Morgan Stanley Eyes $1.3B Dallas Tower: Expansion in Texas Financial Hub
Source: Shelby Tauber/Bloomberg
The bank is evaluating a major skyscraper in Dallas to consolidate operations and deepen its presence in one of the fastest-growing U.S. finance hubs.
By the numbers: Morgan Stanley is considering a 709,000 SF tower at 2401 McKinney Avenue valued at about $1.3B. The firm would invest $684M, with developer Trammell Crow adding $650M. The project could support up to 4,800 jobs.
Deal structure & timeline: The bank would temporarily operate from nearby space for 4 years during construction. The tower is targeted for completion in 2031, followed by a 16-year lease and full consolidation of Dallas operations.
Incentives on the table: Dallas is offering up to $18.5M in grants plus a potential 90% tax abatement on business personal property for 10 years. Approval is expected this week and is viewed as key to the deal.
Location competition: The site sits near Goldman Sachs’ upcoming 5,000-employee campus, highlighting Uptown Dallas as a finance cluster. Morgan Stanley is also considering Alpharetta, Georgia.
Dallas as finance hub: Dallas continues to attract major financial firms, including Bank of America and Goldman Sachs. Broader Texas momentum also includes Apollo Global Management’s potential HQ expansion in Austin, even as downtown Dallas faces relocation pressures.
➥ THE TAKEAWAY
Texas finance race intensifies: Dallas is positioning itself as a direct rival to traditional coastal hubs, with incentives and large-scale campuses reshaping where major banks place long-term bets.
Around Texas
➥ Ryan Serhant is expanding his brokerage into Houston, Dallas, Austin and San Antonio, betting on Texas’ booming luxury housing market with a team of top agents and AI-driven technology.
➥ Gov. Abbott is pushing new rules to rein in Texas’ data center boom, targeting tax breaks, grid costs, and resource use as rapid expansion strains power and water systems.
➥ Texas industrial markets are seeing rising deliveries outpace absorption, pushing vacancy higher and softening rents, even as underlying tenant demand remains relatively resilient.
➥ Big V Property Group and The Seitz Group are launching a 356,000 SF retail center in fast-growing Anna, Texas, anchored by major national retailers.
➥ Austin is facing a lawsuit from property owners after reversing approvals that would have removed 170 Travis County properties from its extraterritorial jurisdiction.
➥ The Alabama-Coushatta Tribe has broken ground on a large East Texas casino resort in Leggett, featuring gaming floors, event space, and a planned hotel as part of a long-term expansion.
➥ Fort Worth’s National Juneteenth Museum is moving toward construction after years of delays, backed by public and private funding in honor of Opal Lee’s legacy.
➥ Data centers in Texas are driving industrial demand and reshaping underwriting as investors prioritize power access and infrastructure readiness.
Follow the Money
| INDUSTRIAL NEW BRAUNFELS Walmart is investing $8M to remodel its New Braunfels distribution center in Texas, adding automation-focused equipment as part of a broader effort to modernize its supply chain network. |
| INDUSTRIAL GAINESVILLE A 7M SF rail-served industrial park in Gainesville, Texas is breaking ground, led by Hughes and B-29 Investments, aiming to anchor long-term logistics and manufacturing growth in North Texas. |
| OFFICE DALLAS Tourmaline Capital Partners acquired a 376,000 SF Tollway Plaza office campus in Dallas, backed by Apollo financing and strong leasing momentum at 91% occupancy. |
| LEGAL CAMERON COUNTY The Texas Supreme Court ruled that SpaceX can continue closing Boca Chica Beach during rocket launches after dismissing a lawsuit over public access rights. |
| MULTIFAMILY IRVING Blackstone provided a $124.6M refinancing for Harbor Group International’s 900-unit mixed-use apartment community in Irving, Texas, replacing existing debt on the property. |
| MULTIFAMILY DALLAS Helaba provided $111.5M in construction financing for a Dallas-area multifamily project converting the former JCPenney headquarters into housing. |
| HOSPITALITY HOUSTON A Houston restaurant is expanding its catering and takeout operations by opening a new warehouse commissary kitchen and second location to support rising demand. |
📈 CHART OF THE WEEK
DFW multifamily rents rose 0.2% in May, marking the strongest monthly increase since April 2025. The gain is modest but suggests a gradual recovery after a period of weak rent growth earlier in 2026.
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