AT&T to Build New Global Headquarters in Plano, Leaving Questions About Downtown Dallas
After spending months scouring North Texas for office space, telecommunications giant AT&T said it will build its new global headquarters in Plano, leaving questions about the future of its massive real estate holdings in downtown Dallas.
The move was confirmed in an email message from CEO John Stankey to employees on Monday. The site at 5400 Legacy Drive will span 54 acres, he said in the email.
In a statement provided to The Dallas Morning News, Stankey said that the company is targeting partial occupancy for the new headquarters “as early as the second half of 2028.”
Stankey added that “this location will provide us the necessary room to cost effectively consolidate all Dallas-Fort Worth Metroplex administrative space, including our three largest locations in Central Dallas, Plano and Irving, and create a corporate campus designed for collaboration, innovation and engagement.”
Impact on Downtown Dallas
It remains to be seen whether the move will take AT&T, which spent $100 million on its downtown Discovery District, and all of its primary operations out of Dallas proper completely. The Discovery District, which includes a massive video screen, a food hall and outdoor seating space, opened in 2021.
The move could have a significant economic impact. Downtown Dallas Inc. estimated that relocation could cause a 30% plunge in property values, costing downtown an estimated $2.7 billion in overall value and dealing another potential blow to a submarket plagued by office vacancies and aging towers.
AT&T had nearly 6,000 workers assigned to its downtown offices in 2022. The Dallas Economic Development Corp. estimates AT&T has nearly 10,700 employees in the city of Dallas.
Its lease at the 37-story Whitacre Tower at 208 South Akard St. runs through Dec. 31, 2031, AT&T said. The tower is owned by Pacific Elm Properties and Dundon Capital Partners.
Reasons Behind the Move
A majority of AT&T employees would have a shorter commute to the new Plano site, based on internal data. The planned move to the suburbs comes after the Fortune 500 company dumped hybrid work and required more of its U.S. employees to work on-site a full five days a week last January.
Dallas investment firm NexPoint owned 215 acres where AT&T plans to build its new home. The site includes the former Electronic Data Systems headquarters, H. Ross Perot Sr.’s information technology company that was founded in the 1960s.
NexPoint planned to oversee a 4-million-square-foot development called The Texas Research Quarter, a development including labs and manufacturing space for life sciences companies looking to call Plano home.
Reaction from City Officials
In a joint statement, Dallas Mayor Eric Johnson and City Manager Kimberly Bizor Tolbert touted Dallas as a “city of opportunity” for workers, families and businesses, citing their efforts to cut violent crime, homelessness and property tax rates.
A 2025 study from Boston Consulting Group conducted for Downtown Dallas Inc. found that AT&T would consider leaving its Dallas headquarters if public safety issues were not addressed.
Tolbert said AT&T’s move is a shift in the company’s structure and culture.
“Dallas is a great city for business, and we have worked tirelessly, strategically, and collaboratively to keep the company in our city limits,” she said.
“But ultimately, this was a decision that came down to AT&T’s desire for a new horizontal location with significant acreage for development. AT&T’s transition will be gradual, and the company will remain part of our city’s fabric in the years ahead.”
Plano’s Gain
Separately, Plano Mayor John Muns called the campus relocation “a powerful reinvestment in the Legacy business district, building on an extraordinary foundation that has driven growth in Plano and our region for decades,” he said in a statement.
The Plano project is one of several large corporate developments slated for the area.
Raising Cane’s Chicken Fingers purchased a property called the Campus at Legacy, which is near the site. The 400,000 square feet of offices will more than triple the chain’s footprint in Plano. Raising Cane’s is expected to move into the property this year, according to previous reporting.
The telecomms giant has been based in Dallas since 2008.
The mayor and city manager said AT&T preferred a “horizontal” campus to Dallas’ skyscrapers.
Conclusion
AT&T’s decision to move its global headquarters to Plano has significant implications for both Dallas and Plano. While the move may have a negative impact on downtown Dallas, it is also an opportunity for Plano to grow and develop its economy.
Frequently Asked Questions
Q: Why is AT&T moving its headquarters to Plano?
A: AT&T is moving its headquarters to Plano to consolidate its administrative space and create a corporate campus designed for collaboration, innovation, and engagement.
Q: What will happen to AT&T’s current headquarters in Dallas?
A: It remains to be seen whether AT&T will completely vacate its current headquarters in Dallas. The company has a lease at the 37-story Whitacre Tower that runs through Dec. 31, 2031.
Q: How will the move affect downtown Dallas?
A: The move could have a significant economic impact on downtown Dallas, with estimated losses of up to $2.7 billion in property value.
Q: What other companies are moving to Plano?
A: Raising Cane’s Chicken Fingers has purchased a property near the site of AT&T’s new headquarters and plans to move in this year.
