THE TEXAS BRIEF
Good morning, Texans!
Texas opens 2026 with capital moving in two directions at once: long-dated bets on infrastructure, real estate, and research, alongside near-term stress in retail, logistics, and municipal systems.
On the investment side, energy majors are reshaping balance sheets, developers are lining up billion-dollar projects across North Texas, and Houston’s medical institutions are positioning themselves ahead of a massive state-backed neuroscience funding wave. On the public side, Dallas County is staring down a $5B jail replacement, while state and federal policy shifts will directly affect small businesses, mileage deductions, and tax credits this year.
TEXAS BUSINESS MOVES
1. Occidental exits OxyChem in $9.7B deal
Occidental Petroleum completed the $9.7B sale of its Dallas-based OxyChem division to Berkshire Hathaway. → Link
Why it matters: This is balance-sheet triage. Occidental is using the proceeds to aggressively pay down debt accumulated from prior mega-acquisitions, signaling that capital discipline is back in favor for large Texas-based energy players.
2. Dallas County hunts site for a $5B jail
Dallas County officials are seeking land for a $5 billion jail replacement, one of the largest public infrastructure decisions in North Texas this decade. → Link
Why it matters: A project of this size will reshape land values, procurement pipelines, and long-term operating costs. It also underscores how aging public infrastructure is colliding with rapid population growth — and how expensive delay has become.
3. Houston prepares for $3B neuroscience funding wave
Houston’s major medical institutions spent 2025 quietly investing and fundraising ahead of Texas’ $3B brain-health initiative. → Link
Why it matters: This positions Houston as the primary beneficiary of state-level life-sciences funding, with spillover effects across real estate, talent recruitment, and biotech commercialization.
4. East Dallas development pipeline comes into focus
Four major projects — including the redevelopment of Town East Mall — are emerging as key 2026 watches across Mesquite, Forney, Rowlett, and Rockwall. → Link
Why it matters: Retail-anchored redevelopment and mixed-use suburban projects are back, but only at scale and with patient capital. These deals will test whether secondary Metroplex markets can absorb another growth cycle.
5) San Antonio homebuilding consolidates
Five builders accounted for more than half of all residential permits filed in San Antonio in 2025. → Link
Why it matters: Housing supply is increasingly controlled by a small group of operators, reinforcing pricing power, standardized product, and land-bank strategies — and squeezing smaller builders out of the cycle.
Secondary Signals (Still Worth Knowing)
The IRS raised the standard business mileage rate to 72.5 cents. offering modest relief for service businesses and contractors. → Link
The CEO of Neiman Marcus’s parent company stepped down as the firm reportedly prepares for bankruptcy. → Link
Craft Ventures opening an Austin office reinforces Texas’ pull for venture capital and operators. → Link
A major Laredo carrier’s Chapter 11 filing highlights how equipment downtime and repair delays can break logistics businesses. → Link
One Sentence Takeaway
Texas is entering 2026 with capital flowing to energy balance sheets, megaprojects, and research hubs — while counties, retailers, and smaller operators face the cost of scale.
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— Robert
Editor, Texas Operator