San Antonio-based H-E-B is increasing its presence in Austin.

The grocery company announced Wednesday that it has leased a two-story, 81,000 square foot building at 2416 East Sixth Street in East Austin for its tech facility and innovation lab for the H-E-B digital team and Favor, the on-demand delivery startup H-E-B acquired earlier this year.

The new center should open in spring of 2019 H-E-B is renovating the industrial warehouse into a creative and collaborative workspace. The workplace is also close to restaurants, breweries, coffee shops and the 7th Street H-E-B store.

“This state-of-the-art space will be a hub for creativity and innovation as we continue to develop the ultimate digital experience for our customers,” Jag Bath, H-E-B Chief Digital Officer and Favor CEO and President, said in a news release. “Bringing H-E-B and Favor closer together will allow us to promote collaboration between our two companies as we strengthen our commitment to building out H-E-B’s omnichannel services.”

With the new space, H-E-B and Favor plan to add several hundred new employees in a variety of jobs including product management, product design, and software engineering.

This year, H-E-B has made a lot of moves into Austin and the tech industry. It acquired Favor. It also appointed Bath as H-E-B’s Chief Digital Officer and it recently added Mike Georgoff as Chief Product Officer for H-E-B Digital.