AT&T’s latest office shuffle in San Antonio is fueling speculation about the future of its downtown Dallas headquarters.
The telecommunications giant confirmed it will vacate its office at 1010 N. St. Mary’s Street in San Antonio and relocate to the city’s West Side, according to the San Antonio Business Journal article published September 29.
The move will leave about 400,000 square feet vacant in the city’s downtown office market, which has already been weakened by recent corporate exits.
Sources familiar with the transaction told the San Antonio Business Journal that AT&T signed a deal last week to occupy more than 100,000 square feet at The Reserve at Westover Hills, a suburban complex that had been largely empty since 2021.
AT&T’s communications team later released a statement saying the “newly upgraded and remodeled facility” represents an investment to support its local employees.
“This move is part of our companywide initiative to optimize our real estate footprint, modernize our facilities, and enhance collaboration and functionality across our workspaces,” the company spokesperson reportedly said. “We expect to move into the new location in the first half of next year, pending construction completion and before our current lease expires.”
The relocation mirrors what multiple reports describe as a similar process underway in North Texas.
AT&T’s global headquarters remains at Whitacre Tower in downtown Dallas, under a lease that runs through 2030; however, the company has not confirmed its long-term plans for the site.
In August, reports indicated the telecom giant had toured suburban office campuses, including the 1.8 million-square-foot Park at Legacy in Plano, the redeveloped site of JCPenney’s former headquarters. Sources told The Dallas Express that a move north of Dallas is increasingly likely.
AT&T has declined to comment directly on the matter. Spokesman Jim Kimberly told The Dallas Express, “We do not comment on rumors and speculation.”
The uncertainty arises from a report commissioned by Downtown Dallas Inc. and prepared by the Boston Consulting Group, which warns that if AT&T relocates, the fallout could be severe.
The analysis projected downtown property values could drop 30%, erasing $2.7 billion in value and cutting $62 million in annual property tax revenue.
The same report cited concerns voiced by corporate stakeholders that crime and sanitation issues downtown could deter tenants. “AT&T would consider relocating if public safety downtown is not addressed,” the analysis noted.
A move by AT&T would add to a series of departures from Dallas’s central business district, echoing trends seen in San Antonio and other Texas cities. Bank of America and other major firms have already pulled operations out of downtown in recent years, shifting to suburban or Uptown campuses.
The company employs thousands downtown, maintains a highly visible presence at Whitacre Tower, and has historically held influence through its role on the board of Downtown Dallas Inc.
The San Antonio shift signals AT&T’s willingness to leave behind central business districts in favor of suburban campuses, leaving open questions about whether Dallas could be next.
DX reached out to AT&T for comment on whether the San Antonio move foreshadows a similar impending action in Dallas; however, a spokesman did not return comment.