Morgan Stanley weighs $1.3B Dallas tower

Dallas City Council has approved an $18.5 million incentive package tied to a proposed Morgan Stanley (MS) office project valued at roughly $1.3 billion. The incentives are designed to support the bank’s potential expansion in the city and are linked to job creation and development commitments laid out in city documents.

Under the proposed agreement, the development would proceed in two phases, beginning with a temporary presence and culminating in a purpose-built office tower on McKinney Avenue. The structure of the plan is intended to allow Morgan Stanley to ramp up operations in Dallas while its long-term facility is constructed.

In the first phase, Morgan Stanley would lease roughly 255,000 square feet at Fountain Place as a temporary base for about four years, or approximately 52 months. The firm is projected to spend about $96.9 million to $97 million on building out and occupying this space during the interim period.

The second phase centers on a new office tower on McKinney Avenue, with reported plans for a building of about 700,000 to 708,000 square feet. This tower is envisioned as Morgan Stanley’s long-term hub in Dallas once construction is complete.

Commercial reporting indicates that Morgan Stanley could invest about $684 million into the new tower, reflecting its role as a major occupier and capital contributor to the project. Trammell Crow Company, the site owner and developer, is expected to contribute about $650 million toward delivering the core-and-shell of the building.

Reports indicate that construction on the McKinney Avenue tower could begin in fall 2026, with an expected completion around 2031. The initial interim lease at Fountain Place is structured to bridge the period between the start of Morgan Stanley’s expanded operations in Dallas and the delivery of the new tower.

City documents and local reporting project that Morgan Stanley would bring about 1,500 jobs to Dallas by 2031 if the project moves forward as contemplated. These roles would be tied to the firm’s expanded presence across the interim and permanent locations.

Longer-term projections estimate roughly 3,800 jobs at the new site by 2035, with some local accounts suggesting the potential for additional hiring beyond that timeframe. These projections underpin the public incentive package, which is structured to support Dallas’s effort to strengthen its financial-services base.