Dallas is offering nearly $5 million in incentives to attract Scotiabank, one of Canada’s largest banks, to establish a major office in the city. The bank is considering a 10- to 15-year lease for about 100,000 square feet at Hillwood’s Victory Commons One in Uptown Dallas. If the deal proceeds, Scotiabank could relocate or create more than 1,000 jobs in Dallas, significantly increasing its presence in the United States. Charlotte is also being considered as a potential location.
The incentive package from Dallas includes a 10-year business personal property tax abatement valued at $831,000 and up to $2.7 million in economic development grants tied to job creation and permitting costs. Additionally, the city has pledged to nominate Scotiabank for Texas Enterprise Zone status, which could provide another $1.25 million in state sales tax refunds. If approved by the Dallas City Council this week, this would be one of the city’s largest incentive packages since it awarded $18 million to Goldman Sachs for its new campus near Uptown.
Scotiabank’s possible move would give it a regional hub in an area that has attracted several financial firms recently. JPMorgan, Charles Schwab, and Wells Fargo have all increased their presence in North Texas. The region has been dubbed “Y’all Street” due to this trend. Factors such as Texas’ lack of personal and corporate income taxes, new business courts, and a large labor pool make it attractive compared to other cities. John Boyd Jr., a site selection consultant based in Florida, said Dallas’ central location, air connectivity, and concentration of Fortune 500 headquarters likely make it more appealing than Charlotte.
Founded in 1832 and headquartered in Toronto, Scotiabank has maintained a modest U.S. presence with its main office in New York and smaller offices in Houston and San Francisco. None serve as a U.S. headquarters for the bank. A Dallas lease would mark an expansion of its wholesale banking, global business payments, and wealth management units; however, Scotiabank does not offer retail or consumer deposit accounts or cash services in the U.S.
If an agreement is reached soon, construction on the new office could begin before year’s end.
