In bid to outcompete Alpharetta, Dallas OKs Morgan Stanley incentives
A flurry of yes votes — and one “yeehaw” — dealt a blow Wednesday to Alpharetta’s ambitions to land a massive regional headquarters from Morgan Stanley.
The Dallas City Council unanimously voted to approve a multimillion-dollar incentive package to woo the Fortune 500 investment bank to Texas. The company is weighing plans to establish a nearly $700 million office with thousands of employees in a new Dallas tower, which itself represents an additional investment. In total, the company said it’s a $1.3 billion project.
“We are still in business, and we are still competing with other cities in the country,” Dallas Councilmember Adam Bazaldua said Tuesday during the city’s meeting.
Morgan Stanley declined to comment to The Atlanta Journal-Constitution and has not announced its final plans, instead only listing Dallas and Alpharetta as finalists for its expansion plans. Morgan Stanley’s real estate brokerage representative, JLL, also declined to comment.
It’s also unclear whether existing Morgan Stanley jobs could be siphoned from Alpharetta and relocated to Dallas if the financial institution chooses Texas for the expansion.
Officials with the city of Alpharetta, which has not offered any public incentives to recruit Morgan Stanley’s regional headquarters, did not immediately respond to a request for comment. Charlie Jewell, economic development director for Alpharetta, previously told the AJC, “The city of Alpharetta remains committed to supporting companies that invest and grow in our community.”
“We value Morgan Stanley’s presence in Alpharetta and appreciate the role they play in our local economy,” he continued.
Incentives are a common if controversial currency used by state and local leaders in the war for jobs and corporate investment.
The incentive package from Dallas consists of a $18.5 million economic development grant and a nearly $5 million tax break. Dallas Councilmember Jesse Moreno added that the state is also leveraging its Texas Enterprise Fund, a “deal-closing grant” program similar to Georgia’s regional economic business assistance grant program.
“Those tools create an unparalleled incentive that creates favorable conditions that will support our Dallas communities through job creating and significant economic investment,” Moreno said during the meeting.
Morgan Stanley, if it proceeds with its Texas proposal, pledges it will lease about 700,000 square feet in the new tower for 16 years. Moving in around 2031, Morgan Stanley said it would employ 3,800 people at the new tower by the end of 2035 and could eventually add another 1,000 employees by the end of 2039. The average annual wage for the jobs is expected to be $128,000.
Morgan Stanley is one of Alpharetta’s largest private employers, housing 13 business divisions and more than 3,000 employees in the surrounding area, according to its website. Those office locations include Georgia 400 Center and about 216,000 square feet across the Edison Alpharetta office park.
There are no blocks of high-end office space in metro Atlanta large enough to meet Morgan Stanley’s described needs. A lease of that size would require building a new office tower or complex. A 700,000-square-foot lease signing also would represent the largest office deal announced in the Atlanta area since NCR’s Midtown campus in 2018.
Dallas Councilmember Gay Donnell Willis listed several other financial institutions that have large operations in North Texas, ranging from Goldman Sachs to Scotiabank. She urged Morgan Stanley to join the list.
“And I also want to point out that Texas does have a very favorable tax situation, so don’t forget that either,” she said.