SAP is consolidating roughly 1,000 North Texas employees from its Plano office and SAP Concur's Allen office into a single regional hub at Spectrum Center, 5080 Spectrum Drive in Addison. The German software giant plans to house regional business operations, software development, and a new customer experience center at the site, with the office expected to become operational in mid-2027.
SAP selected Addison after a multistate search for a long-term home for its regional operations, according to CoStar News, which reported the company chose the Dallas suburb over out-of-state options. SAP plans to occupy more than 50,000 square feet of office space spanning multiple floors at Spectrum Center, per CoStar's reporting, and the company's commitment reportedly pushed the building above 90% leased.
The customer experience center will let corporate clients explore SAP's technologies, including artificial intelligence, according to a news release announcing the move. SAP provides software used by businesses worldwide to manage finance, human resources, supply chains and other essential operations, the release notes.
A Freshly Renovated Campus Along the Tollway
Spectrum Center is made up of two 12-story Class-A office towers totaling 614,000 square feet, as reported by ConnectCRE. Acram Group, which owns the property, has invested approximately $30 million in building improvements and tenant amenities, the same release states.
To help seal the deal, the Addison City Council approved an incentive agreement on October 13 that includes a capital investment grant of up to $500,000, along with additional performance-based incentives, per the release. The site sits in the town of Addison, part of a stretch of North Texas that has become increasingly attractive to major employers.
Joining a Growing Tech Corridor
SAP's decision adds to a growing concentration of enterprise technology companies along the Lower Dallas North Tollway, ConnectCRE reports. Google, ServiceNow, Hitachi Digital Services, Tanium, and Topaz Labs all have operations in Addison, while IBM and Amazon Web Services are represented in the broader corridor, according to the release.
The move lands as the Dallas-Fort Worth office market shows signs of tightening. The market posted 1.4 million square feet of positive net absorption in the second quarter of 2026, according to a Colliers report, while vacancy fell to 19.9%, dropping below 20% for the first time since the second quarter of 2023.
Average rental rates in the region climbed to $34.01 per square foot during that same quarter, per Colliers' data, as available sublease space contracted to 7.3 million square feet. Roughly 3.1 million square feet of office space was under construction across the DFW market in the second quarter, the report notes, suggesting developers are still betting on demand even as companies like SAP consolidate rather than expand their footprints.
