AT&T Joins the Corporate Flight From Downtown Dallas
AT&T’s relocation to Plano delivers a major hit to downtown Dallas, driven by safety concerns, hybrid work, and suburban momentum.
Nina Dale
January 08, 2026
Good morning, and welcome to the first issue of CRE Daily Texas! Each Thursday, we’ll deliver a curated roundup of the latest local news, trends, and transactions straight to your inbox.
We occasionally expand coverage for engaged readers with new, more focused editions, and that’s why you’re receiving this today.
If you haven’t already, please take our 2-minute reader survey so we can tailor coverage to your interests.
Market Snapshot
|
|
||||
|
|
*Data as of 1/7/2026 market close.
Downtown Exodus
AT&T Joins the Corporate Flight From Downtown Dallas
Whitacre Tower, the AT&T headquarters in downtown Dallas. Jake Dockins for WSJ
In a fresh blow to one of the country's most vacant downtowns, AT&T will relocate its global HQ from Dallas to Plano by 2028.
Suburban shift: AT&T will move its global headquarters from downtown Dallas to Plano by late 2028, anchoring a new low-rise corporate campus on the former Electronic Data Systems site. The telecom giant says the horizontal layout will better support in-person collaboration and modern work needs. CEO John Stankey called the move a long-term investment in efficiency and flexibility.
Why Plano? Despite pouring $100M into its Discovery District in 2021, Plano checks all the boxes for growth: room to build, shorter commutes, and a business-friendly climate. With major players like Toyota and Fisher Investments already calling it home, the suburb has become a magnet for corporate HQs. Many AT&T employees live nearby, easing the shift and aligning with the company’s push for in-office presence.
Downtown dilemma: The exit deals a major blow to downtown Dallas, where AT&T has been headquartered since 2008. Nearly 6,000 employees were based at its downtown offices as of 2022. While its lease at Whitacre Tower runs through 2030, a full withdrawal could slash downtown property values by up to 30% and cost the city $62M annually in property tax revenue, according to previous estimates.
Not their first exit: This isn’t AT&T’s first major HQ relocation. Its earlier departure from St. Louis led to a sharp downtown slump in retail and restaurant activity—raising red flags for Dallas. The shift underscores Stankey’s broader strategy: consolidate office space and invest in locations tailored to today’s hybrid work reality.
➥ THE TAKEAWAY
Why it matters: As remote and hybrid work reshape priorities, suburban hubs with space and talent are edging out legacy downtowns. For cities like Dallas, hanging onto major employers now means competing on more than just skyline views.
Around Texas
➥ The I-35 corridor is rapidly urbanizing into a budding megaregion, but an oversupply of upscale apartments is putting pressure on rents and occupancy as growth outpaces demand absorption.
➥ Downtown Dallas is grappling with one of the nation's highest office vacancy rates as companies flee to safer, modern suburban campuses, signaling a profound shift in the metro’s corporate geography.
➥ Despite leading the nation in new apartment deliveries, Austin's multifamily fundamentals softened in late 2025, with rent growth stalling and occupancy dipping slightly.
➥ The Dallas Builders Association and Operation Finally Home are building their 10th mortgage-free home for injured veterans and first responders, funded entirely through donated land, labor, and materials.
➥ Saks Global’s leadership shake-up and looming bankruptcy have cast fresh uncertainty over the future of Neiman Marcus’ iconic downtown Dallas store, as city talks continue and key real estate decisions remain unresolved.
Follow the Money
| MULTIFAMILYMIDLAND Related Cos. sold a 277-unit Midland portfolio as investors recalibrate amid strong rent growth and a sharp drop in deal volume. |
| INDUSTRIALHOUSTON Ares Real Estate acquired a six-building, 1M SF industrial portfolio across Houston’s top submarkets, marking a major bet on the city’s booming logistics sector. |
| OFFICEDALLAS Crescent Real Estate expanded its Dallas footprint with the acquisition of 2100 McKinney Avenue, a 19-story Uptown office tower. |
| OFFICEDALLAS Real Capital Solutions acquired the 18-story Walnut Glen tower in Dallas for $26.1M—64% below its 2016 price. |
| MULTIFAMILYDALLAS Trammell Crow’s High Street Residential has begun construction on a 394-unit multifamily project at Dallas’ SMU/Mockingbird Station. |
| DEVELOPMENTDALLAS Dallas County plans to build a $5B replacement for its aging jail, potentially freeing up 15 acres of prime Trinity River frontage near downtown. |
| OFFICEHOUSTON DZMI has acquired the 15-story Kirkwood Tower in Houston’s Energy Corridor, marking the office building’s second ownership change in just six months. |
| OFFICEAUSTIN A new construction filing signals that Nvidia’s North Austin office fit-out is underway, with occupancy likely delayed beyond earlier projections. |
📈 CHART OF THE WEEK
DFW tops the list of U.S. markets to watch in 2026, driven by rapid population growth, a surging financial sector, strong demand for Class A office space, and momentum in major mixed-use development.
-
📬 Newsletters: Stay ahead of the market with our national CRE Daily newsletter — or get hyper-local insights from CRE Daily New York.
-
🎙️Podcast: No Cap by CRE Daily delivers an unfiltered look at the biggest trends—and the money game behind them.
-
🗓️ CRE Events Calendar: The largest searchable calendar of commercial real estate events—filter by city or sector.
-
📊 Market Reports: A centralized hub for brokerage research and market intelligence, all in one place.
-
📈 Fear & Greed Index: A fully interactive sentiment tracker on the pulse of CRE built in partnership with John Burns Research & Consulting.
You currently have 0 referrals, only 1 away from receiving Multifamily Stress Test Model.
What did you think of today's newsletter? |
