German software giant SAP announced it will consolidate about 1,000 North Texas employees from its Plano office and SAP Concur’s Allen location into a single regional hub at Spectrum Center, 5080 Spectrum Drive in Addison. The move, reported by Hoodline, will bring regional business operations, software development and a new customer‑experience center to the suburb, with the office expected to be operational in mid‑2027.

SAP will occupy more than 50,000 square feet across multiple floors of the two‑tower, 12‑story Class‑A office complex that totals 614,000 square feet. The property, owned by Acram Group, has received roughly $30 million in recent building improvements and tenant amenities, according to the release cited by Hoodline.

To secure the deal, Addison City Council approved an incentive agreement on October 13 that includes a capital‑investment grant of up to $500,000 and additional performance‑based incentives. The council’s support underscores the city’s commitment to attracting high‑tech employers and expanding local job opportunities.

The relocation adds to a growing concentration of enterprise‑technology firms along the Lower Dallas North Tollway. Hoodline notes that Google, ServiceNow, Hitachi Digital Services, Tanium and Topaz Labs already operate in Addison, while IBM and Amazon Web Services are present in the broader corridor. The Dallas‑Fort Worth office market is tightening, with 1.4 million square feet of positive net absorption in Q2 2026 and vacancy falling to 19.9%, the first sub‑20% rate since Q2 2023. Average rental rates rose to $34.01 per square foot, and about 3.1 million square feet of office space remain under construction.

What’s next: SAP’s new Addison hub will open in mid‑2027, and the city will monitor the company’s performance against the incentive agreement. Residents can expect increased economic activity, new tech‑focused job opportunities and expanded access to SAP’s AI‑driven customer‑experience showcase.

Sources: hoodline.com