AT&T Abandons Downtown Dallas for Suburban Campus in Plano
Finn's Take· TL;DR- AT&T relocating global headquarters from Downtown Dallas to Plano in 2028, consolidating operations and shortening commutes for majority of North Texas workforce.
- Downtown Dallas faces estimated 30% property value drop and $62 million annual tax loss; already struggling with 27.2% vacancy rate, second-highest nationally.
- Safety concerns and employee preference for suburban campus drove decision; departure compounds downtown's challenges from recent Neiman Marcus and other major company exits.
The Telecom Giant's Departure Sends Shockwaves Through Downtown
AT&T officially announced it will relocate its global headquarters from Downtown Dallas to a sprawling 54-acre campus in Plano, with CEO John Stankey confirming the company will construct its new headquarters at 5400 Legacy Drive . The telecommunications giant expects to begin moving into the new space during the second half of 2028 , ending a nearly two-decade presence in the city's urban core.
The move will allow AT&T to "cost effectively consolidate all Dallas-Fort Worth Metroplex administrative space, including our three largest locations in Central Dallas, Plano and Irving" into one unified campus. Company officials cited improved employee experience as a key factor, noting the new location would shorten commutes for the majority of its North Texas workers . This decision comes after AT&T required all office employees to return to work in person five days a week starting in January 2024 .
AT&T currently employs about 10,000 people at its global headquarters in Dallas , making it the biggest Fortune 500 company headquartered in the city . The company has maintained its headquarters in Downtown Dallas since 2008 and holds a lease at Whitacre Tower through 2030 .
Economic Devastation Looms for Downtown Dallas
A study commissioned by Downtown Dallas Inc. found that property values downtown would decrease 30% if AT&T left, representing a $2.7 billion drop in property value and $62 million loss in annual property taxes for the city . This blow comes as Dallas' downtown already has the second-highest vacancy rate of any downtown in the country at 27.2%, behind only Seattle .
Local businesses are bracing for significant losses. Frankie's, a downtown sports bar, reports that approximately 75% of its private events space comes from AT&T, with lunch business following similar patterns . Ari Lowenstein, owner of Ari's Pantry, called the news "unfortunate" because his Italian market had many customers from AT&T .
The departure is particularly striking given that AT&T spent $100 million to open its Discovery District in Downtown Dallas in 2021 . It remains unknown what will happen to the AT&T Discovery District once the relocation is complete .
Safety Concerns and Suburban Appeal Drive Decision
Reports indicate AT&T's interest in relocating stemmed from concerns about safety at the downtown location and a desire to shorten commutes . A Downtown Dallas Inc. study identified crime as a possible catalyst for AT&T's departure , though the city responded by increasing downtown police presence to a ten-year high of 130 officers .
Dallas Mayor Eric Johnson acknowledged that AT&T's leaders "preferred a large horizontal, suburban-style campus rather than the skyscrapers that define our city center" . The decision followed almost a year of consideration, with company officials touring office spaces in Dallas-Fort Worth suburbs including Irving, Plano and Richardson during summer and fall .
Employee reactions were mixed, with some liking the downtown office while others found the building old and the area unsafe . Many employees hope the new Plano complex will eliminate uncomfortable drop-in seating arrangements and provide assigned desks .
Downtown's Uncertain Future
AT&T's departure compounds other recent losses, coming less than a year after Neiman Marcus' merger with Saks Fifth Avenue and the announcement of closing their CityPlace offices, followed by plans to close the century-old Neiman Marcus flagship store Downtown . The move adds to a series of departures from Dallas's central business district, as Bank of America and other major firms have already shifted to suburban or Uptown campuses .
Despite the challenges, city leaders remain optimistic. Dallas officials pointed to future growth including the new Goldman Sachs campus in Victory Park and the 'Y'all Street' financial sector . Downtown Dallas Inc. maintains that "Downtown Dallas is one of the best places in the country to do business" and sees the moment as creating "space for new opportunities" .
The question now is whether downtown Dallas can reinvent itself quickly enough to fill the massive void left by one of its most prominent corporate anchors, or if AT&T's exodus marks the beginning of an irreversible decline for the urban core.