History has proven that the U.S. economy is amazingly resilient to horrific events such as those that occurred during the past year. According to ITR Economics, the recovery of the economy is progressing nicely — consumers are happy and businesses are buying capital equipment. However, there are concerns that excessive government stimulus spending will cause runaway inflation in the future. There were lots of winners and losers in the pandemic. Industrial benefitted the most with the dramatic increase in e-commerce. Costar reports that the industrial market is very tight with low vacancies and increasing rents.  Demand for distribution logistics space is at an all-time high. More and more warehouse space is needed closer to the consumer. The office market is struggling and may take years to recover as employees continue to work remotely until they have to return to work. Many Texas office buildings were already hurting with the struggling oil and gas market. Available office space is near record highs according to Costar. Click to read more at www.dmagazine.com.

For a state that has weathered its share of storms, Texas was unprepared for the record-setting deep freeze that hit in mid-February and the initially estimated $50 billion in damages. “According to Enki Research disaster modeler Chuck Watson, the severe weather event could cost as much as $90 billion, making this the largest insurance claim event in history,” said public insurance adjuster Scott Friedson, CEO of Insurance Claim Recovery Support (ICRS). REDnews connected with Friedson while he was making the trek to Houston, where he was slated to inspect more than 35 different properties that week. “There is no insurance risk model that accounts for a catastrophic loss to an entire state, especially the state of Texas,” he says. Hurricanes, Friedson explains, typically cause damage along the coast. Even a hail storm or tornado has limited exposure. The freeze, on the other hand,
stretched from the westernmost point of Texas to its easternmost point. “Many property owners are juggling pipe repairs, water damage mitigation, satiating tenant demands and dealing with their insurance claims simultaneously,” says Friedson, who exclusively represents commercial and multifamily owners, as well as management companies. “The carriers’ adjusters are coming as quickly as they can as policyholders are grappling with understanding their policy, as well as their contractual obligations in order to ensure a fair and prompt settlement.” Click to read more at www.rednews.com.

Buffett’s Berkshire Hathaway Energy wants to build 10 electric plants in Texas, for use when demand peaks or other plants falter. And it’s the first time a price tag has been attached to a remedy since last month’s deadly storm. What would it cost to make the Texas electrical grid robust enough to weather a terrible winter storm? It would cost about $8.3 billion — if the state followed a proposal from the Oracle from Omaha, Warren Buffett. This year’s winter storm killed 111 people in Texas, the Department of State Health Services said Thursday. What’s being pitched by lobbyists for Buffett’s Berkshire Hathaway Energy might not be the only idea spawned by last month’s devastating statewide electrical outages, or even the best one. But it’s the first to price out the answer to a pressing question lawmakers are trying to solve in Austin: What would Texas have to do, and at what cost, to keep the lights and heat going if there’s another winter storm like the last one? The Nebraska cavalry has been working the Texas Legislature for a week and a half, according to The Texas Tribune’s Cassandra Pollock and Erin Douglas. The company’s proposal is for a Texas Emergency Power Reserve that would build 10 new natural gas-fueled power plants in the state. Those would be idle unless they were needed for times of peak demand — or when other electrical generation failed, as some did last month. It’s a slick presentation, complete with a poll and a slide deck that found Texans would pay $3 more every month to “significantly lower their risk of losing power during a winter storm.” As proposed, the new plants would be up and running by winter 2023. Click to read more at www.texastribune.org.