AT&T is once more declining to say whether it intends to keep its headquarters in downtown Dallas, even as city leaders and business groups increasingly acknowledge that the company is weighing a move.
Dallas officials and real estate stakeholders have been in ongoing discussions with AT&T executives regarding the telecommunications giant’s long-term plans for Whitacre Tower, the company’s global headquarters, located in the heart of the city’s central business district. The lease on the 37-story tower runs through 2030, but reports indicate AT&T has toured office campuses in Plano and Frisco and is evaluating options that could shift thousands of employees out of downtown.
The company has declined to confirm or deny to The Dallas Express whether a relocation decision is underway. However, a spokesperson previously told the outlet, “We do not comment on rumors and speculation.”
The silence has prompted growing concern among city officials. Dallas City Manager Kimberly Bizor Tolbert recently said, “AT&T remains a critical component of the core of our city. We are engaged in discussions with company executives. We want AT&T’s presence in Dallas, and our engagements will continue.”
In recent weeks, both The Dallas Morning News and the Dallas Business Journal have fanned the flames, reporting that AT&T is actively reviewing suburban sites, including the nearly 2-million-square-foot Park at Legacy campus in Plano. Developers and property owners quoted in those outlets said they believe AT&T is evaluating its options due to employee commute patterns or ongoing concerns about public safety in the downtown core.
A report commissioned by Downtown Dallas Inc. and prepared by the Boston Consulting Group warned that AT&T’s relocation could trigger a 30% decline in downtown property values and result in an estimated $2.7 billion in losses.
The analysis also projected a $62 million annual reduction in property tax revenue. The report stated that “AT&T would consider relocating if public safety downtown is not addressed,” The Dallas Express previously reported.
Following that report, the City of Dallas announced a “Safe in the City” initiative aimed at increasing police presence, enforcing prohibitions on street sleeping, and targeting crime hotspots. Dallas voters previously approved a charter amendment requiring the police department to expand to at least 4,000 officers.
Despite those efforts, business and economic development leaders remain concerned that the company may have already made up its mind.
AT&T recently confirmed it will relocate a major office out of downtown San Antonio to a suburban campus, a move that left roughly 400,000 square feet of office space vacant and unsettled the city’s corporate market. That shift fueled speculation that Dallas could face a similar outcome, DX reported.
In 2008, local officials in San Antonio reportedly stated that they were caught off guard when AT&T relocated its headquarters to Dallas. Bexar County Judge Nelson Wolff said at the time, “There was no inkling… Everybody is just shocked, just like me.”
Today, Dallas stakeholders say they do not want to be surprised again, but they acknowledge that they may be.
Developers with major projects in the urban core have described AT&T as an anchor tenant whose departure would be felt far beyond the blocks surrounding Whitacre Tower.
“We hope they choose to stay downtown,” said Billy Prewitt, CEO of Pacific Elm Properties, which co-owns the tower, per the DBJ. “They’re a very important part of the fabric of downtown Dallas.”
James Dondero, founder of Dallas-based firm NexPoint, reportedly said he believes AT&T could relocate to a northern location, citing employee concerns about safety and commute times. “They don’t view it as a safe, happy place to work,” Dondero said.
The Dallas Express again contacted AT&T, requesting confirmation of whether the company is considering a new headquarters, what factors are driving the evaluation, and whether local stakeholders should prepare for potential changes. The company did not respond.
For now, Dallas is waiting and observing as a massive public company deliberates a decision that could significantly impact the city’s economic hub.