The Bank of Nova Scotia, operating as Scotiabank, could get millions in economic incentives for opening an office in the city of Dallas, if leaders approve a proposed resolution.
The city of Dallas is offering Scotiabank, one of North America's largest banks with about $1.4 trillion in assets, more than $2.7 million in economic incentives to lure the company to the city as the bank considers where to open a 100,000-square-foot office that will serve as its newest U.S. hub.
The pitch comes as Dallas is adding to its standing as a financial service hub: Goldman Sachs is building a $500 million, two-building campus in the city, where it is on track to increase its current regional head count from about 4,600 employees up to more than 5,000 employees when the hub opens in 2028.
Scotiabank is also considering Charlotte, North Carolina, another financial service hot spot. It's not yet clear if Charlotte is offering economic incentives of its own for Scotiabank.
The financial incentives "make a lot of sense" because the new office "would be a huge win for any community," according to Susan Arledge, a senior managing director with over three decades of site selection work in Newmark's Dallas office. Arledge is not working with Scotiabank on this potential lease.
The new office could add more than 1,000 jobs at an average salary of at least $135,000, with at least 25% of those jobs going to Dallas city residents.
"Cities and states would fight over the opportunity to have that kind of client, especially such a credible company like Scotiabank," Arledge said. Scotiabank currently has U.S. offices in New York City, San Francisco and Houston.
Dallas incentives
The city of Dallas hopes Scotiabank will open its new regional office at the 15-story, 364,469-square-foot office tower at 2601 Victory Ave.
The city is offering the bank tenant improvement incentives; a tax abatement on business personal property; roughly $2.5 million for job relocation; and $200,000 in fees tied to expedited permitting and soft cost expenditures tied to job creation and investment.
In the 10-year period, officials said the city of Dallas expects to forgo $831,308 of business personal property tax.
To qualify for the incentives, Scotiabank would need to sign its lease before the year's end, with occupancy needing to occur before Dec. 31, 2026.
The city of Dallas staff said it would also nominate Scotiabank "as an enterprise project," through the Texas governor's office, the resolution said.
Victory Commons One has office tenants including Lockton Cos., Third Bridge and Alcority, as well as more than 168,000 square feet of available office space, according to CoStar data. Hillwood developed the building in 2022.
The proposed grants are expected to be paid through phases based on the relocation or creation of jobs within the next seven years. All jobs tied to the economic incentives would need to be maintained through Dec. 31, 2037.
The Toronto-based bank has more than 900 locations in Canada. Scotiabank did not immediately respond to CoStar News seeking additional information about its U.S. plans.