Dallas rolls out $18.5M incentive package to lure Morgan Stanley away from Mamdani's NYC

Days after Zohran Mamdani-endorsed socialists swept primary races, intensifying concerns among some business leaders about New York City's economic future, Dallas approved an $18.5 million incentive package aimed at persuading Morgan Stanley to build a $1.3 billion campus in Texas, a move that could eventually bring nearly 5,000 jobs to the Lone Star State.

According to the New York Post, the Dallas City Council voted 15-0 on Wednesday to approve tax incentives and economic grants intended to convince the Wall Street firm to choose Dallas over a competing proposal in Alpharetta, Georgia.

If Morgan Stanley moves forward with the project, the bank would initially lease approximately 255,000 square feet at Fountain Place while construction begins on a 708,000-square-foot office tower near McKinney Avenue. The permanent campus is expected to open in 2031.

Dallas Mayor Eric Johnson touted the city's growing reputation as a financial hub and credited its pro-business policies for attracting major employers. "Morgan Stanley's engagement with Dallas speaks to the strength of our financial services ecosystem," Johnson said. "We have worked hard to make Dallas America's most pro-business city."

Johnson added, "American capitalism, free market competition, and even economic success itself have all been vilified by New York's top elected leaders."

The proposal comes as Texas continues to attract financial firms and corporate investment from traditional business centers. Dallas officials estimate the Morgan Stanley project would generate nearly $65 million in net economic benefits for the city. Morgan Stanley would invest roughly $97 million in temporary office space before committing another $684 million toward construction of the new tower. Developers are expected to contribute an additional $650 million to the project. 

Employment would be phased in over several years, with roughly 1,500 employees working in Dallas by 2031. That number is projected to grow to approximately 3,800 by 2035 before reaching nearly 4,800 workers. Positions would include wealth management, technology, legal, compliance, and operations, with average salaries exceeding $128,000 annually before benefits.

Other major financial institutions have already expanded their Texas footprint. Goldman Sachs is constructing a new Dallas campus expected to accommodate more than 5,000 employees, while JPMorgan Chase now employs more people in Texas than in New York.

Morgan Stanley has not announced a final decision on the project. Construction could begin as early as this fall if Dallas is selected, with initial operations launching in 2027. The firm's global headquarters would reportedly remain in Manhattan.