Morgan Stanley is making a major investment in Dallas, adding to the city’s growing financial industry. The move has also renewed debate about whether New York City can keep attracting big employers.
Morgan Stanley plans to anchor a new tower at 2401 McKinney Ave. Officials expect the hub to create more than 3,800 jobs, per Office of the Texas Governor, and generate more than $1.3 billion in direct and indirect investment in Dallas, according to the New York Post.
Per the report, Dallas and Texas are offering financial incentives for the project. The bank agreed to an $18.5 million development grant from the city, while a separate state program is providing a $44 million grant.
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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. 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,” stated Eric Grossman, the company’s chief legal officer, per the Post. “We greatly appreciate the support of the State of Texas, the City of Dallas, and Dallas County and look forward to deepening our roots and contributing to economic growth in the state.”
The New York Post placed the announcement in the context of Wall Street firms expanding outside New York City under Mayor Zohran Mamdani‘s push to raise taxes on the wealthy. In May, Mamdani, 34, unveiled a $124.7 billion budget that called for bringing in more money from wealthy property owners and high earners.
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One proposal would tax second homes worth more than $5 million, which the city estimated would raise $500 million, per the budget report. His administration also backed a City Council plan to shrink a tax credit that benefits high earners, known as the unincorporated business tax credit. According to the report, that change would bring in another $68 million.
For now, the bigger test may come over the next several years, as the tower rises and Dallas works to prove it can compete with Manhattan for Wall Street talent.
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