Pioneer Natural Resources Departs Dallas Office

North Texas posted negative office space absorption for the first time since 2024 after Pioneer Natural Resources left its 1.1 million-square-foot headquarters in Irving.

The energy company moved out of its built-to-suit office, which opened in 2019, in the first quarter, according to a recent report from Newmark. The departure follows its acquisition by Exxon Mobil in late 2024 for nearly $60 billion. Exxon Mobil, based in the Houston suburb of Spring, laid off 400 Pioneer employees in the wake of the merger.

Pioneer’s lease at 777 Hidden Ridge Drive in Irving extends to 2039 and lacks termination options, CoStar reported in November 2024, when the acquisition raised questions about the future of the office property. Cushman & Wakefield is currently marketing the property for lease.

Irving City Council terminated its incentives agreement with the company in February 2025, demanding repayment of $4.3 million.

Dallas-based KDC developed the office property for Pioneer as part of the $1 billion Hidden Ridge development, starting construction in 2017. Amenities include a fitness center, employee cafeteria, town hall and daycare.

Washington, D.C.-based PRP Real Assets purchased the 10-story Irving campus for $584.2 million or almost $520 per square foot in 2019. It was the most expensive office trade of the year, the Dallas Business Journal reported at the time.

Without Pioneer’s move, net absorption would have been positive for the first quarter of 2026, Newmark wrote. The quarter also saw no new office deliveries for the first time in nearly 30 years. As a result, the overall vacancy rate ticked down slightly to 24.5 percent in the first quarter, according to the report.

The market’s lack of deliveries won’t last long; the pipeline features 11 Class A projects totaling 2.4 million square feet of office space. Four of those projects are expected to be completed this year.