Full Breakdown
Morgan Stanley Mulls $1.3 B Uptown Dallas Tower Amid City’s Financial-Hub Push
6/22/2026, 10:33:49 PM
Proposed Tower and Investment Details
Morgan Stanley is evaluating a $1.3 billion office tower at 2401 McKinney Avenue in Uptown Dallas. The site, owned by Trammell Crow Co., houses a seafood restaurant and a defunct gym. According to city planning documents, the development would comprise a 709,000-square-foot skyscraper. Morgan Stanley would invest $684 million in the property, while the developer would allocate about $650 million for construction. The firm intends to occupy the building under a 16-year lease beginning in 2031.
City Incentive Package and Lease Arrangements
Dallas City Council has indicated that the project will proceed only with an economic-incentive package. Morgan Stanley is seeking up to $18.5 million in development grants and a tax abatement of up to 90 percent on business personal property for ten years. The bank also plans to lease 255,000 square feet in the nearby Fountain Place tower for four years while the new tower is built. The space would accommodate around 1,500 employees and involve a $97 million lease commitment through 2031.
Dallas’s Expanding Financial Landscape
The proposal follows a trend of Wall Street firms establishing a presence in Texas. Goldman Sachs is constructing a $500 million, 800,000-square-foot campus less than a mile from the proposed site, slated for completion in 2028. Bank of America will anchor a new tower nearby in the Uptown neighborhood. These projects, together with Morgan Stanley’s potential tower, extend Dallas’s emergence as a financial hub, especially as firms seek talent outside New York.
Key Stakeholders
- Morgan Stanley – Investment bank evaluating the tower.
- Trammell Crow Co. – Owner of the 2401 McKinney site and developer of the project.
- Dallas City Council – Authority approving the incentive package.
- Goldman Sachs – Competitor with a nearby $500 million campus.
- Bank of America – Another bank planning a tower in the same district.
Both Morgan Stanley and Trammell Crow declined to comment on the proposal.
Projected Economic Impact
City officials estimate the development could generate close to $65 million in economic impact and create up to 4,800 jobs by the end of 2039. The temporary lease is expected to support 1,500 employees through 2031. The project would add office capacity to central Dallas, which experienced the departure of two major sports franchises— the NBA’s Mavericks and the NHL’s Stars— from the downtown arena district.
Conflicting Reports & Gaps
Sources differ on projected employment and space metrics. Bloomberg cites a target of 4,800 jobs by 2039, while Bisnow reports 3,800 employees by 2035. Square-footage estimates also vary: Bloomberg mentions a 709,000-square-foot tower, whereas Bisnow references “around 700,000 square feet” of leaseable space. No statements from Morgan Stanley or Trammell Crow are available, leaving the firm’s commitment uncertain.
What’s Next
Dallas City Council is scheduled to vote on the incentive package on Wednesday. If approved, construction could begin in the fall, with the tower slated for completion in 2031. Morgan Stanley is also weighing an Alpharetta, Georgia location, which could affect the decision.
