Google released AdWords Editor 8.0.1 for Windows and Mac, that now supports location extensions. "To support this change, we've transitioned local business ads in your AdWords account to ads compatible with location extensions, added Extensions tab in AdWords Editor interface, and removed Local Business Ads tab," explains Google.
8.0.1 also introduces collapsible and expandable panels, progress bars for tasks that can take some time, improved adding of My Client Center accounts, simplified exception requests, and more helpful error messages.
If you're using AdWords Editor, you'll be prompted to upgrade automatically. After installing, download your account again. To preserve your comments and unposted changes, select 'Backup then Upgrade' option in automatic upgrade prompt, then import backup file after downloading account.