Morgan Stanley Weighs Dallas Office Tower as Finance Expansion in Texas Accelerates

Morgan Stanley is considering a $1.3 billion, 709,000-square-foot office tower in Dallas that would bring together its growing operations across the city, underscoring how Texas continues to attract major finance-sector real estate commitments. According to Propmodo, the proposed development would rise at 2401 McKinney Avenue and could house as many as 4,800 employees by 2039.

Key Details

The project pairs Morgan Stanley as the prospective tenant with Trammell Crow Co. as developer. Morgan Stanley would invest about $684 million in the property by 2031, while Trammell Crow would contribute roughly $650 million toward construction.

The building would be delivered under a 16-year lease starting in 2031, with space for up to 4,800 employees by 2039. While the tower is under development, Morgan Stanley plans to take 255,000 square feet in a nearby building on a temporary basis.

The proposal is also tied to public incentives. The Dallas City Council is scheduled to vote Wednesday on a package that includes as much as $18.5 million in economic development grants and a 90% tax abatement on business personal property for 10 years. Morgan Stanley told the city it would not move forward without economic incentives and is also considering Alpharetta, Georgia as another option.

The site is in close proximity to other large finance-related office projects. It sits less than a mile from Goldman Sachs Group’s $500 million campus, which is expected to open in 2028 with room for 5,000 employees. Bank of America is also set to anchor a new tower in Dallas’s Uptown neighborhood.

The location also has a longer development history. Trammell Crow had previously proposed a $200 million, 750,000-square-foot tower for the same site in 2020, but that earlier plan stalled.

Why It Matters

For commercial real estate professionals, the proposal is another sign that major financial firms are still using large office projects to support long-term geographic expansion. Dallas is described in the source as a key beneficiary of Wall Street’s diversification beyond New York, and the Morgan Stanley plan adds to a growing cluster of high-profile finance occupiers in the market.

The project could also help counterbalance recent pressure in Dallas’s central business district. The source notes that the city has recently faced setbacks after the Mavericks and Stars announced plans to move their arenas outside downtown. More broadly, interest from firms such as Apollo Global Management, which is evaluating Austin for a second U.S. headquarters, suggests the momentum for finance jobs in Texas is extending beyond a single deal or submarket.