- Dallas officials are negotiating to retain AT&T’s headquarters amid reports the company is exploring relocation options in suburbs like Plano, Irving, and Richardson.
- AT&T contributes an estimated $62M in annual property taxes to Dallas, with officials warning a move could impact city property values by up to 30%.
- Concerns over downtown safety and employee commutes are reportedly driving AT&T’s interest in relocating, despite holding a lease through 2030 at its current Downtown Dallas location.
A Critical Retention Fight
City leaders are sounding the alarm after reports surfaced that AT&T has been touring suburban office campuses. One of the sites visited includes The Park at Legacy in Plano, as reported by Bisnow. The tours suggest the company is considering a possible new headquarters outside of Dallas. While no move has been confirmed, Dallas officials say the stakes are too high to risk losing the telecom heavyweight.
“We’ve got to make sure, at all costs, they stay in the city of Dallas,” said Dallas Economic Development Corp. Board Chair Gilbert Gerst.
AT&T Eyes Suburbs, Despite Existing Lease
The company has maintained its headquarters at Whitacre Tower in Downtown Dallas since 2008 and remains under lease there through 2030. But recent tours of roughly 1M SF of office space in suburban markets like Richardson, Irving, and Plano suggest AT&T may be preparing for a shift.
According to the Dallas Business Journal, employee safety and long commutes are among the reasons AT&T is considering the move. These concerns have become more pressing since the company mandated a full-time return to office in January.
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City Officials Scramble To Respond
Dallas City Manager Kimberly Bizor Tolbert and EDC CEO Linda McMahon recently met with AT&T CEO John Stankey. The meeting was held to address the challenges the company is facing. While specifics weren’t shared, Tolbert emphasized that the city is ready to “get to work” to keep AT&T rooted downtown.
City Council Member Paul Ridley confirmed that “delicate negotiations” are underway. Officials are working to find a long-term solution to retain the Fortune 100 company.
Richardson Expansion Raises Eyebrows
AT&T already has a presence in the suburbs, notably in Richardson. In May, the company signed a 12-year lease for 186K SF at Lakeside Boulevard Tower. The move consolidated its call center operations but is seen by some as a sign that the company is warming to suburban campuses.
Despite the speculation, AT&T has not confirmed any plans to relocate its headquarters. A company spokesperson declined to comment on the reports, calling them “rumors.”
Why It Matters
With $62M in property tax revenue and wide-reaching economic implications on the line, Dallas is under pressure to maintain one of its marquee corporate residents. City officials are looking to leverage public-private negotiations to offset AT&T’s concerns and retain its headquarters footprint.
