Morgan Stanley chooses site for $684M campus that pitted Dallas vs. Alpharetta
One of the world’s largest financial institutions has selected Texas for a new regional headquarters, snubbing its other listed finalist in metro Atlanta.
Texas Gov. Greg Abbott on Monday announced Morgan Stanley would establish a new workforce hub in Dallas, where the investment bank has promised to invest $684 million and employ more than 3,800 workers. Morgan Stanley previously disclosed it had narrowed its options to a two-horse race between Dallas and Alpharetta, where the investment bank already has a large office presence.
The decision comes as Texas and Dallas offered tens of millions of dollars in grants and tax breaks to woo Morgan Stanley to the Lone Star State.
“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,” Eric Grossman, Morgan Stanley’s executive vice president, chief legal officer and chief administrative officer, said in Abbott’s news release.
Abbott said that “Texas is the financial capital of America,” a subliminal dig at Wall Street.
“Opportunity’s address is now Y’all Street,” he added. Dallas has built a financial services hub many call “Y’all Street,” aiming to lure banking operations away from New York City.
Pitting states or cities against one another is a common economic development tactic often used to request taxpayer-backed incentives.
Texas offered Morgan Stanley nearly $44 million from its enterprise fund, a “deal-closing grant” program similar to Georgia’s regional economic business assistance grant program. Texas also offered Morgan Stanley $40,000 tied to veteran hiring, while Dallas leaders in June unanimously approved its own $18.5 million grant and a nearly $5 million tax break.
During the incentive negotiations in Dallas, Morgan Stanley disclosed that Alpharetta was the Texas city’s primary competition. Alpharetta leaders declined to disclose whether Morgan Stanley had engaged its city officials or requested potential incentives related to the project.
Morgan Stanley did not immediately comment to The Atlanta Journal-Constitution on its decision, with a spokesperson adding in an email they’ll “be back in touch if we have anything to add.”
Morgan Stanley pledged it will lease about 700,000 square feet in a new Dallas 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.
It’s unclear what, if any, impact the Texas project might have on the investment bank’s Alpharetta operations.
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, or leasing across multiple buildings. 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.