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Real Estate & Construction News Roundup (8/12/26) – Data Center Momentum Increases, Multifamily Construction Projects Decline, CRE Returns as Top Investor Preference

September 01, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, office vacancies fall, fair housing advocacy groups sue HUD, foreign buyers reduce purchases of U.S. residential real estate, and more!

After a brief slowdown to begin the summer, data center construction planning momentum picked up in July, again shining as the brightest sector in building. (Zachary Phillips, Construction Dive)
The number of finished multifamily construction projects declined last year — welcome news for multifamily operators eager to work through the recent supply wave — and a record share of new apartments were high-density. (Julie Strupp, Multifamily Dive)
Fair housing advocacy groups sued the U.S. Department of Housing and Urban Development, claiming the agency’s funding restructuring drastically reduces their ability to receive funds from the Fair Housing Initiatives Program. (Ryan Kushner, Multifamily Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Kahana Feld Announces Key Partner Additions Coast to Coast

June 22, 2026 — Kahana Feld
IRVINE, CA – June 10, 2026 – Kahana Feld is pleased to announce Yvette Davis, Evan Kalooky, Beth Obra-White, Sean Paden, Michael Parme, Jeffrey Schmid, and Julieanne Yanez have joined the firm as partners. Four of these partners are joining the San Diego office, which further strengthens the firm’s General Liability and Construction Litigation practices and enhances Kahana Feld’s ability to serve clients across a broad range of complex matters in the region. Read the full story...
Reprinted courtesy of Kahana Feld

Arbitration in Construction Disputes: Process and Best Practices

July 27, 2026 — Construction Executive
Arbitration in construction disputes is a private process where owners, contractors, subcontractors, designers or suppliers present claims to one or more neutral arbitrators instead of taking the dispute through court. The arbitrator reviews evidence, hears testimony and issues a decision that is usually binding. Construction arbitration is common because project disputes are technical, document-heavy and time-sensitive. Claims may involve schedule delays, disputed change orders, defective work, differing site conditions, payment, termination, indemnity, surety issues or professional liability. Arbitration can be faster and more specialized than litigation, but speed is not guaranteed. Poor contract language, broad discovery, weak records and unclear damages can make arbitration expensive. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

Colorado Legislature Considers Series of Bills Aimed at Boosting Affordable Housing Construction in Colorado — What Homebuilders Need to Know

April 08, 2026 — Amanda E. McKinlay - Snell & Wilmer
On January 21, 2026, lawmakers introduced a series of bills with the goals of addressing affordable housing issues and incentivizing construction in Colorado. House Bill 26-1001 (known as the “Housing Opportunities Made Easier ‘HOME’ Act”) concerns the promotion for residential developments on “qualifying properties” that do not contain exempt parcels through the bypassing of often time-consuming local planning processes. Under HB26-1001, a “qualifying property is any real property that contains no more than five acres of land and is owned by: (i) a nonprofit organization with a demonstrated history of providing affordable housing; (ii) a nonprofit organization that provides public transit; (iii) a nonprofit organization that has entered into an agreement with another nonprofit organization with a demonstrated history of providing affordable housing, provided that the agreement requires the nonprofit organization with a demonstrated history of providing affordable housing to develop a residential development on the property; (iv) a school district; (v) a state college or university; (vi) a housing authority; or (vii) a local or regional transit district or a regional transportation authority serving one or more counties. Read the full story...
Reprinted courtesy of Amanda E. McKinlay, Snell & Wilmer
Ms. McKinlay may be contacted at amckinlay@swlaw.com

PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand

May 12, 2026 — Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2Gavel
In January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth. RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity. Reprinted courtesy of Stephen J. Humes, Pillsbury, Alicia M. McKnight, Pillsbury, Jason Drogin Atwood, Pillsbury and Andrew H. Jacobs, Pillsbury Mr. Humes may be contacted at stephen.humes@pillsburylaw.com Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com Read the full story...

Construction Robotics Works Where Variation Ends

August 11, 2026 — Aarni Heiskanen - AEC Business
BuiltWorlds published its 2026 Robotics Top 50 this summer, and the list is genuinely wide. Fifty solutions across nine categories, from 3D printing and prefabricated component manufacturing to earthmoving, demolition, material transport, layout, installation, inspection, and drilling. The honorees come from sixteen countries. It looks like robotics has finally spread across the whole project lifecycle. However, having vendors in nine categories does not mean that contractors are robotizing their work en masse. Zacua Ventures, in its 2026 construction robotics report, estimates that on-site robotics accounted for less than 0.03% of global construction spending in 2025. Zacua says: “That is not a failed market. It is a market at the beginning of an adoption S-curve”, while warning that its estimates rest on private vendor data and may be high if vendors overstate how widely their machines are deployed. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination

June 08, 2026 — Paul Williamson - ConsensusDocs
Volumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[4] As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor. Read the full story...
Reprinted courtesy of Paul Williamson, Peckar & Abramson, P.C.
Mr. Williamson may be contacted at pwilliamson@pecklaw.com

New Survey Reveals Overwhelmingly Optimistic Results on the Use of AI in Construction

May 14, 2026 — Construction Executive
On December 5, 2025, CMiC and Dodge released a survey asking over 6,000 companies across various sectors of the construction industry their stance on artificial intelligence—whether they use it or not; whether they like it or not; whether they have or are planning to implement it or not; and so on. Considering its reputation for skepticism and reluctance when it comes to adopting new forms of technology, the construction industry pleasantly surprised CMiC and Dodge with its answers to these questions, with 87% of contractors believing AI will have a meaningful impact on construction. “The research indicates the construction industry is nearing a tipping point for AI adoption,” says Steve Jones, senior director of industry insights at Dodge Construction Network, who sat down with Construction Executive to delve further into the survey questions and answers and what the industry’s current position on them means for AI’s future role in construction. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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