Morgan Stanley is officially headed to Y’all Street.
Texas Gov. Greg Abbott confirmed Monday that the financial services titan plans to invest $684M to establish a new regional hub in Uptown Dallas.
Morgan Stanley this summer signed a temporary lease for 255K SF at Fountain Place in Downtown Dallas, which it will use while it awaits construction of a new 700K SF high-rise at 2401 McKinney Ave. in Uptown.
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“Morgan Stanley's expansion in Dallas reflects our commitment to investing in markets that offer exceptional opportunities for growth, innovation, and talent,” Morgan Stanley Executive Vice President Eric Grossman said in a statement.
“With a thriving financial services industry in Texas, we are excited to establish Dallas as a strategic hub for our firm to serve clients and attract top talent in the years ahead.”
The company will invest around $97M in the Fountain Place tower at 1445 Ross Ave., which will be home to 1,500 employees through 2031. The remaining $587M will go toward the Uptown tower.
Developer Trammell Crow Co. plans to spend another $650M to construct the tower, with Morgan Stanley expected to lease the building for 16 years beginning in 2031. The investment banking company aims to have 3,800 employees at the campus by the end of 2035.
The Dallas City Council approved an $18.5M incentive package for the project in June, and Abbott announced that Morgan Stanley will receive a $43.8M grant from the Texas Enterprise Fund as well as a veteran-created job bonus of $40K.
“Dallas’s selection as the home of Morgan Stanley’s new operations hub is a landmark investment in our city and another defining moment in the rise of Y’all Street,” Dallas Mayor Eric L. Johnson said in a statement. “I am proud to welcome Morgan Stanley to Dallas and grateful for this extraordinary vote of confidence in our city and its future.”
Morgan Stanley’s new building will be less than a mile from Goldman Sachs’ 800K SF office campus at 2323 N. Field St. That $709M project is slated to be finished in 2028.
Dallas-Fort Worth's growth as a national financial hub has turned Uptown Dallas into one of the premier office markets in the region. It commands the region’s highest rents and accounts for nearly 94% of North Texas’ development pipeline.
Heightened demand in Uptown has been driven by a flight to quality as firms aim to establish a presence in DFW now that the region has the Texas Stock Exchange, as well as offices for the New York Stock Exchange and other major financial heavyweights.
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