Dallas officials are working to prevent AT&T from moving its global headquarters out of downtown. The Dallas Economic Development board heard this week from City Manager Kimberly Tolbert, who said the city is “actively working to ensure that the future of AT&T is in the city of Dallas,” according to the Dallas Business Journal.
AT&T has reportedly looked at sites in Plano, Richardson, and Irving, including the Park at Legacy campus at 6501 Legacy Drive, which is currently JCPenney’s headquarters. The company has not made a public statement about its intentions. Sources familiar with the matter point to safety concerns and a desire to shorten employee commutes following a return-to-office policy requiring five days a week onsite.
AT&T is one of North Texas’ largest employers, generating $122 billion in revenue and employing nearly 142,000 people. The company has been based at Whitacre Tower in downtown Dallas since 2008 and holds a lease there until 2030. However, an analysis by Boston Consulting Group found that if AT&T leaves downtown, property values could drop by as much as 30 percent and annual property tax revenue could fall by $62 million.
Linda McMahon, CEO of the Dallas Economic Development Corporation (EDC), along with Tolbert, have met with AT&T CEO John Stankey and other executives recently as part of efforts to retain the company. EDC board chair Gilbert Gerst told attendees at a Sept. 2 meeting that keeping AT&T within Dallas should be done “at all costs.” Gerst indicated he would prefer for the headquarters to remain downtown but said city leaders would accept any location within city limits.
The possible move highlights ongoing issues for downtown Dallas related to public safety and commuting challenges. Other large corporations have previously relocated from urban centers to suburban campuses; Toyota moved its U.S. headquarters from California to Plano in 2017 (https://www.dallasnews.com/business/real-estate/2017/07/06/toyota-s-move-to-plano-is-a-game-changer-for-d-fw-and-north-texas-real-estate/).
McMahon emphasized AT&T’s significance: “They are integral to the city’s very identity.”
Whether AT&T remains tied to downtown or relocates elsewhere within Dallas will depend on what measures city officials take during negotiations with the company.
