Morgan Stanley’s Expansion Plans in Dallas
Morgan Stanley is expected to sign a four-year, 120,000-square-foot lease at Dallas’ Fountain Place skyscraper as the banking giant weighs a North Texas expansion that could occupy most of a new office tower in Uptown, multiple real estate professionals told The Dallas Morning News.
The financial services firm would have the option to expand to two additional floors within the 58-story downtown skyscraper designed by renowned architect I.M. Pei and his firm.
Temporary Lease and Expansion Plans
The downtown lease would be temporary as the company reconfigures its Dallas footprint, leaving several options for Morgan Stanley to consider. The firm could lease up half a million square feet in Dallas-Fort Worth that may be consolidated in Uptown or split between Dallas and Collin County.
Morgan Stanley is looking to consolidate its D-FW operations in Dallas, most likely as a lead tenant in a new tower at 2401 McKinney Ave. in Uptown. The firm was deciding between Dallas and Frisco, and Morgan Stanley appears to be leaning toward Dallas.
Real Estate Market and Availability
There’s plenty of room in the tower. Fountain Place is roughly 45% leased with nearly 680,000 square feet of office space available, according to data from real estate firm CoStar. The tower has remained half-empty since Tenet Healthcare left downtown for the suburbs in 2019.
That office space in Fountain Place is tenant-ready, said Steve Triolet, senior vice president of research and market forecasting at Partners.
“The space is already built out. It was the Tenet Healthcare sublease, so most of the space is ready to be occupied,” Triolet said.
Possible Locations and Impact
Among the possible landing spots for Morgan Stanley in the northern suburbs is a 327,000-square-foot office tower that was built for Reata Pharmaceuticals in Plano’s Legacy business park. Another is land near Swedish-based Ericsson’s U.S. Headquarters in Plano.
If Morgan Stanley were to land temporarily in downtown Dallas, it would be a win for a central business district reeling from high office vacancy rates and the planned exit of one of its largest private employers.
Telecom giant and Fortune 500 company AT&T announced plans earlier this month to build a new global headquarters in Plano. The site at 5400 Legacy Drive will span 54 acres, and the firm plans to partially occupy the new building as early as the second half of 2028.
Other Financial Institutions in the Area
In 2024, JPMorgan Chase expanded its Akard Street office, a site overlooking Klyde Warren Park and on the edge of downtown.
Bank of America is leaving Dallas’ tallest building — Bank of America Plaza — for a new, 30-story Uptown skyscraper.
Goldman Sachs topped out on its highly anticipated campus on Field Street next door to Victory Park. The New York bank is expected to spend at least $709 million on the development.
The latest sales, leases and deals across North Texas
It’s one of four Wealth Advice Center hubs planned nationally, bank said.
Conclusion
Morgan Stanley’s potential expansion in Dallas is a significant development for the city’s real estate market and financial sector. The company’s decision to lease a large office space in Uptown or downtown Dallas would be a major win for the area, bringing in new jobs and investment.
FAQs
Q: What is Morgan Stanley’s expansion plan in Dallas?
A: Morgan Stanley is expected to sign a four-year, 120,000-square-foot lease at Dallas’ Fountain Place skyscraper and is considering a larger expansion in Uptown or downtown Dallas.
Q: What is the current state of the real estate market in Dallas?
A: The real estate market in Dallas is experiencing high office vacancy rates, but there is still a significant amount of available office space, including in the Fountain Place skyscraper.
Q: How will Morgan Stanley’s expansion affect the local economy?
A: Morgan Stanley’s expansion is expected to bring in new jobs and investment to the area, which would have a positive impact on the local economy.
Q: What other financial institutions are located in the area?
A: Other financial institutions in the area include JPMorgan Chase, Bank of America, and Goldman Sachs, which have all expanded or established a presence in Uptown or downtown Dallas in recent years.
