On the same day that AT&T announced plans to relocate its headquarters from Downtown Dallas to Plano, Dallas Mayor Eric Johnson spoke with the New York Post about Zohran Mamdani’s inauguration. Johnson commented, “What was already a trickle is going to turn into a flood of individuals and companies who have called New York home for a long time, moving to Dallas.” This statement coincided with news that could significantly impact the city’s downtown business district.
AT&T’s decision will leave behind a 2 million-square-foot vacancy in Downtown Dallas by late 2028. Before this announcement, office vacancy rates in the area were already at 33 percent, according to Partners Real Estate. The move is expected to further challenge an urban core that has struggled to retain major tenants.
Texas Governor Greg Abbott addressed the situation during a campaign event in Fort Worth, saying, “Local leaders, it’s their responsibility to ensure that homeless people are not endangering their citizens.” While Abbott did not mention Johnson by name, his remarks appeared directed at local leadership amid criticism over downtown conditions.
In related developments, uncertainty surrounds Neiman Marcus’ flagship store in downtown Dallas. Saks Global CEO Marc Metrick recently stepped down as speculation grows about a possible bankruptcy filing. Earlier in 2025, Saks had announced plans to close the historic store at 1618 Main Street but postponed closure after discussions with city officials. The company stated it would keep the location open beyond the 2025 holiday season while talks continue regarding potential redevelopment of the property.
Another setback for downtown came when Shawn Todd of Todd Interests told the Dallas Morning News he would return ownership of The National—a major mixed-use skyscraper project—to lender Starwood Capital Group after defaulting on a $230 million refinancing loan from 2023. The building at 1401 Elm Street is one of the largest office conversion projects nationally and received $150 million in state and local incentives for its redevelopment. “We’ve been committed to downtown,” Todd said. “We’ve been committed for 20 years. In 35 years, our firm has never lost money — this is the first year that it’s happened.”
Elsewhere in Texas real estate news, Lurin Capital founder Jon Venetos faces multiple lawsuits related to defaults and allegations of fraud since spring 2025. Similarly, Tides Equities—owned by Sean Kia and Ryan Andrade—faces another foreclosure notice on Tides at Highland Meadows, a large apartment complex in Dallas tied to part of $826 million in troubled commercial real estate debt scheduled for auction this month. Although this figure represents a decrease from December’s high of $911 million headed for auction, it remains elevated compared to previous months when such debt hovered around $600 million.
In Houston’s luxury residential market, half of Harris County’s ten most expensive homes sold in 2025 were located within one square mile of River Oaks neighborhood. The top sale was an estate at 2110 River Oaks Boulevard designed by John Staub and last listed for $18.9 million; Compass Real Estate agent Laura Sweeney represented both buyer and seller.
Meanwhile in Austin, Google has moved into Sail Tower at 601 West Second Street after signing a full-building lease in 2019. The tower had remained vacant since its completion in 2022—a situation estimated to have cost Google approximately $53 million per year in rent payments. Despite occupying the building now, Google is offering six floors for sublease with Digital Realty Trust identified as a potential subtenant.
