By Daily Mail (U.S.) | Created at 2026-06-26 00:00:58 | Updated at 2026-06-26 02:06:05
2 hours ago
Dallas has rolled out the red carpet for Morgan Stanley's proposed $1.3 billion skyscraper as fears grow that a surge in support for far-left politicians in New York could spark a corporate stampede to the South.
The Texas metropolis's lawmakers unanimously approved an $18.5 million incentive package on Wednesday aimed at persuading the Wall Street giant to build a massive new office tower in downtown Dallas and relocate thousands of jobs from New York.
The deal, approved in a 15-0 vote by the Dallas City Council, would offer the banking powerhouse generous tax breaks and economic grants if it chooses Texas over rival bidder Alpharetta, Georgia.
The move comes just days after a string of victories by progressive candidates in New York elections, fueling fresh concerns among business leaders that higher taxes and tougher regulations could push more companies to flee the Big Apple.
The prospect of greater influence for Zohran Mamdani and other progressive New York politicians has intensified concerns among some business leaders, who fear higher taxes, stricter regulations and policies they view as hostile to corporate growth could accelerate the flow of jobs and investment to states such as Texas.
Meanwhile, Dallas Mayor Eric Johnson wasted little time making the pitch.
'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.'
The proposed relocation would see nearly 5,000 jobs eventually move to Dallas, further cementing the city's growing reputation as 'Y'all Street' - a booming Texas financial hub attracting firms and executives looking for lower taxes and a friendlier business climate.
Dallas has rolled out the red carpet for Morgan Stanley's proposed $1.3 billion skyscraper
The prospect of greater influence for Zohran Mamdani and other progressive New York politicians has intensified concerns among some business leaders
Lawmakers unanimously approved an $18.5 million incentive package to persuade Morgan Stanley to build a massive new office tower in downtown Dallas (pictured: Morgan Stanley's NYC office)
Johnson took a swipe at New York City's political leadership, arguing that capitalism and economic success have increasingly come under attack.
'American capitalism, free market competition, and even economic success itself have all been vilified by New York's top elected leaders,' he said.
While Morgan Stanley has yet to make a final decision, Dallas officials are hoping the lucrative incentive package will tip the scales in their favor.
Under the proposal, the bank would initially lease around 255,000 square feet at Fountain Place while a new 708,000-square-foot office tower is constructed near McKinney Avenue.
The permanent headquarters, expected to open in 2031, would represent one of the largest recent corporate investments in downtown Dallas.
Morgan Stanley is expected to pour nearly $97 million into its temporary offices and another $684 million into the new tower, while developers would invest a further $650 million in construction.
Employment would expand gradually, with around 1,500 workers based in Dallas by 2031. That figure could climb to 3,800 by 2035 and eventually reach nearly 4,800 employees.
The roles would span wealth management, technology, legal, compliance and operations, with average salaries topping $128,000 per year before benefits.
Dallas Mayor Eric Johnson (pictured at a World Cup event) wasted little time making the pitch
The proposed relocation would see nearly 5,000 jobs eventually move to Dallas, further cementing the city's growing reputation as 'Y'all Street'
City officials estimate the project would generate almost $65 million in net economic benefits for Dallas.
The development would mark yet another victory for Texas in its battle with New York for financial sector jobs.
Goldman Sachs is already building a sprawling $500 million Dallas campus expected to house more than 5,000 employees when it opens in 2028. JPMorgan Chase now employs more people in Texas than in New York.
Business leaders have increasingly pointed to Texas' lack of state income tax, pro-business policies and specialized commercial courts as key reasons for the migration south.
Steven Fulop, CEO of Partnership for New York City, warned that the city risks losing more employers if policymakers fail to prioritize job creation. 'NYC can't govern as if jobs are an entitlement when Dallas is recruiting them every day,' he said.
The concerns echo warnings from JPMorgan Chase chief executive Jamie Dimon, who recently cautioned that New York's tax burden could drive both businesses and top talent elsewhere. 'Individuals vote with their feet,' Dimon warned.
If approved, construction on Morgan Stanley's Dallas expansion could begin as early as this fall, with initial operations launching in 2027.
The bank's global headquarters would remain in Manhattan, but landing the project would be another major blow to New York's standing as the undisputed capital of American finance.
