Semiconductor manufacturer signs huge office lease in Allen

A semiconductor manufacturer for automotive and industrial industries just signed a massive office lease in Allen that will expand its Dallas-Fort Worth footprint.

Onsemi will occupy the entire 97,000-square-foot building at 505 Millennium Drive, which has been owned by Austin-based Capital Commercial Investments since 2011, Bisnow reported. It will be Onsemi’s second office in DFW. 

Onsemi plans to embark on a $28 million tenant build-out in August. The project will take roughly eight months to complete.

The company’s decision to lease the Allen building, which will house its design center, stemmed from outgrowing its current office on Lakeside Boulevard in Richardson.

Capital Commercial Investments, led by Paul Agarwal, is known for buying large office campuses. It previously acquired the former headquarters of JCPenney, ExxonMobil, McAfee and American Airlines. In March, Capital Commercial purchased the 164,000-square-foot building at 4200 Regent Boulevard in Irving at a steep discount of $56 per square foot.

Onsemi joins a growing number of semiconductor manufacturers establishing a presence in North Texas. This region has seen substantial investments from industry giants like Texas Instruments and Globitech.

The U.S. 75 corridor between McKinney and Sherman, dubbed Silicon Prairie, has become a hotspot for development and land speculation as companies seek to capitalize on the area’s burgeoning tech industry, the outlet reported.

In late 2023, President Joe Biden designated Texoma, encompassing North Central Texas and Southern Oklahoma, as one of 31 U.S. semiconductor tech hubs. Texas Gov. Greg Abbott later established the Texas Semiconductor Innovation Consortium Executive Committee, aiming to cement the state’s leadership in semiconductor research, design and manufacturing.

Meanwhile, several other companies have shown long-term commitments to Allen, reflecting Collin County’s rapid growth. Last month, the Credit Union of Texas bought its 120,000-square-foot headquarters building in the north Dallas suburb, three years after buying another nearby building. 

—Quinn Donoghue 

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