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Real Estate & Construction News Roundup (8/5/26) – Data Centers Reshape Hotel Demand, AI Changes Construction Workflows and Global Tariffs Raise CRE Construction Costs

August 16, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, AI creates new real estate play for VCs, Wall Street sells more rental homes, builders capitalize on flood of water projects and more!

• Data center construction has the potential to be a significant opportunity for extended stay hotels in the near and long term, provided sustainable demand patterns exist within a given market. (Jenna Graber, Hotel Dive)
• Artificial intelligence doesn’t represent an “extinction event” for AEC firms, but it will fundamentally change the way construction pros streamline certain tasks. (Matthew Thibault, Construction Dive)
• With the 21st Century ROAD to Housing now law, there are a number of outstanding questions about implementation and compliance for multifamily pros. (Julie Strupp, Multifamily Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Dispute Erupts Into Public Over Castro Theater Rehab Project Costs

September 08, 2026 — Richard Korman - Engineering News-Record
As it was about to start an arbitration of final payments on a complex theater renovation, the entertainment company that leases San Francisco's landmark Castro Theatre has filed a state court trademark violation lawsuit seeking to bar the contractor from publicizing as a success its work for the owner on that and other projects. Read the full story...
Reprinted courtesy of Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com

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Massachusetts Settlement Targets Mortgage-Backed “Homeowner Benefit” Agreements

April 08, 2026 — A.J. S. Dhaliwal, Mehul N. Madia & Maxwell Earp-Thomas - Sheppard
On March 11, Massachusetts Attorney General Andrea Joy Campbell announced a consent order with a real estate-related lender’s subsidiary, and affiliated individuals resolving allegations that the company violated the Massachusetts Consumer Protection Act by deceptively marketing mortgage-backed “Homeowner Benefit Agreements” to financially struggling homeowners. According to the complaint, the company offered homeowners relatively small upfront cash payments, typically less than $1,500, in exchange for a 40-year exclusive right to act as the listing broker if the homeowner later sold the property. The Attorney General alleged that the agreements also triggered substantial payment obligations upon other transfers, including death or foreclosure, and that the transactions were secured by recorded mortgages that could interfere with refinancing, home-equity access, or the ability to sell the home. The complaint further alleged that the company marketed the product to vulnerable consumers searching for loans or public benefits while obscuring the true nature of the transaction. Reprinted courtesy of A.J. S. Dhaliwal, Sheppard, Mehul N. Madia, Sheppard and Maxwell Earp-Thomas, Sheppard Mr. Dhaliwal may be contacted at adhaliwal@sheppard.com Mr. Madia may be contacted at mmadia@sheppard.com Mr. Earp-Thomas may be contacted at mearp-thomas@sheppard.com Read the full story...

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Insurance Coverage and Bad Faith Practice Earns Prestigious Band One Ranking in the Chambers USA 2026 Guide

June 22, 2026 — White and Williams LLP
White and Williams LLP's Insurance Coverage and Bad Faith Practice Group is pleased to share that it has received a Band One ranking in the Chambers USA 2026 Guide for Insurance, Pennsylvania. Additionally, Patricia B. Santelle, Chair Emeritus, Randy Maniloff, Partner, and Robert Walsh, Partner have all been individually ranked on the Chambers USA 2026 Guide in Insurance in Pennsylvania. The Insurance Coverage and Bad Faith Practice's consistent focus on their clients and handling of complex claims were just two of the attributes contributing to their elite Band One ranking, after 11 years on the Chambers USA list. When asked about their experience working with White and Williams’ Pennsylvania Insurance Practice, one client stated, “What distinguishes White and Williams is the high level of service and accountability. The team is responsive, organized and reliable, which allows our internal teams to move quickly and make informed decisions with confidence.” Read the full story...
Reprinted courtesy of White and Williams LLP

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Insureds’ Altering Dates for Hailstorm Damage Justifies Denial of Claim

June 02, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Firth Circuit affirmed the district court’s grant of summary judgment to the insurer due to the insureds’ failure to establish the date of loss after a hailstorm. Cutchall v. Chubb Lloyds Ins. Co. of Texas, 2026 WL 625633 (5th Cir. March 5, 2026). In September 2021, the Cutchalls made a claim on their policy for interior water damage due to a hailstorm that breached their roof. Chubb retained two engineers to inspect the home, but neither found evidence that a hailstorm caused the damage. Instead, the engineers concluded a variety of other causes, such as poor ventilation and as-built defects, caused the damage. Because Chubb concluded that some of these other causes were covered by the policy, it paid only for the covered portions. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Urban Digital Twins: How Virtual Cities Could Help Build Smarter Cities

August 11, 2026 — Gravel2Gavel Construction & Real Estate Law Blog
Traffic congestion, endless construction, flooded streets and power outages. For city leaders and residents alike, these disruptions are simply part of daily urban life. But an emerging tool, known as the urban digital twin, could help cities anticipate problems before they occur by allowing planners to simulate responses, stress-test infrastructure, and evaluate decisions before implementing them in the real world. What Is an Urban Digital Twin? An urban digital twin is a dynamic, data-driven virtual model of a real city. It uses AI analytics and combines 3D modeling with real-time data and information from sources such as IoT sensors, traffic cameras, satellite feeds, infrastructure databases, utility networks, and environmental data including weather systems and heat maps to create a continuously updated digital representation of the urban environment that mirrors infrastructure, movement and systems in real time. In other words, it is a living digital replica of a city. Read the full story...
Reprinted courtesy of Pillsbury

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IRMI Expert Commentary: NY Highest Court Confronts Downstream Risk Transfer for Subcontractor Bodily Injury Claims

March 17, 2026 — Gregory D. Podolak & Alexander G. Hopkins - Saxe Doernberger & Vita, P.C.
Originally published on IRMI.com, copyright 2026 International Risk Management Institute, Inc. Subcontractor employee bodily injury claims (so-called action over claims) are a staple of construction risk management in the Empire State—so much so that the phrase “labor law” instinctively invites a shudder among the most experienced general contractors. The savvy among them intensely monitor case law developments and the evolution of the insurance market to ensure a cutting-edge, meticulously developed downstream risk transfer plan. And when guidance arrives from an appellate-level court, it’s a moment to take note. This is one of those moments. In late 2025, New York’s highest court—the NY Court of Appeals—had the rare opportunity to examine an all-too-routine bodily injury fact pattern and took the opportunity to closely examine the scope of contractual indemnity and its interplay with additional insured coverage in Dibrino v. Rockefeller Center N., Inc., 2025 N.Y. Slip Op. 07077, 2025 WL 3670593 (Ct. App. Dec. 18, 2025). Reprinted courtesy of Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and Alexander G. Hopkins, Saxe Doernberger & Vita, P.C. Mr. Podolak may be contacted at GPodolak@sdvlaw.com Mr. Hopkins may be contacted at AHopkins@sdvlaw.com Read the full story...

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New York Moves to Tighten Third-Party Practice: Key Changes to CPLR 1007

March 31, 2026 — Sophia L. Cahill - Sheppard
Effective April 18, 2026, the New York Legislature enacted the Avoiding Vexatious Overuse of Impleading to Delay (“AVOID”) Act, amending CPLR 1007—the statute that governs third-party practice. The amendment sharply limits when and how defendants can commence third-party actions, curbing the expansive discretion they previously enjoyed and targeting the late-stage impleaders that often upend case schedules. What Changes Before the AVOID Act was signed into law on December 19, 2025 (and subsequently modified by Chapter Amendments A9502 and S8809, signed by Governor Hochul on February 13, 2026[1]), CPLR 1007 gave defendants broad latitude to implead “any person who is or may be liable” for all or part of the plaintiff’s claim. CPLR 1007 specified no outside time limit for the initiation of a third-party claim; courts assessed only whether a defendant’s delay was undue—such as impleading months after the note of issue—and whether the plaintiff would suffer prejudice if the third-party action were not severed. Read the full story...
Reprinted courtesy of Sophia L. Cahill, Sheppard
Ms. Cahill may be contacted at scahill@sheppard.com

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