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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)

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

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Insurer Granted Summary Judgment on Claim for Roof Damage Caused by Windstorm

May 26, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The insurer successfully moved for summary judgment, eliminating the insured’s claim for roof damage due to windstorm. Mulas v. Westchester Surplus Lines Ins. Co., 2026 U.S. Dist. LEXIS 20537 (Jan. 30, 2026). The insureds’ commercial property sustained windstorm damage during Hurricane Ian. Westchester denied the claim. The insureds believed Westchester wrongfully denied coverage for roof damage and various interior damage to property. The insureds also argued that Westchester’s actual cash value (ACV) payment did not reflect the fully insured loss. The insureds sued and Westchester moved for summary judgment. Westchester argued the roof damage was not covered because Hurricane Ian did not cause the damage. Westchester hired an engineer who determined the roof damage was not caused by wind from Hurricane Ian. Westchester pointed out that the insureds’ expert also found no wind damage on the roof. The insureds offered no other evidence suggesting the hurricane caused roof damage. Therefore, the insureds could not show that Westchester breached the policy by denying coverage. 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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Construction Contract Negotiation & Drafting: A Practical Checklist (and Where State-Specific Issues Can Surprise You)

April 20, 2026 — Michelle Cooper - Sheppard Construction and Infrastructure Law Blog
Construction contract negotiation is often treated as a “forms exercise,” especially when the parties start from familiar templates (e.g., AIA forms). In practice, though, the biggest problems tend to arise not from the existence of a form, but from (i) misalignment among the project’s governing documents and participants, (ii) ambiguity in pricing and payment mechanics, and (iii) state-specific statutory requirements that override negotiated terms. This article includes a practical checklist intended to help owners, developers, and contractors streamline contract negotiations, reduce downstream disputes, and avoid unpleasant surprises during payment administration. Read the full story...
Reprinted courtesy of Michelle Cooper, Sheppard
Ms. Cooper may be contacted at mcooper@sheppard.com

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AI Data Centers Become City-Scale Infrastructure, Prompting New Industry Playbook

August 11, 2026 — Bryan Gottlieb - Engineering News-Record
AI data centers are no longer just buildings. They are increasingly reaching power-demand levels more commonly associated with municipalities, prompting industry groups to launch a new framework they say is needed to keep pace with rapidly changing power, cooling and reliability requirements. Read the full story...
Reprinted courtesy of Bryan Gottlieb, Engineering News-Record
Mr. Gottlieb may be contacted at gottliebb@enr.com

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Flatiron Said Disputed Concrete Mix Cost Millions on Large Caltrans Project

June 22, 2026 — Elaine Silver & Richard Korman - Engineering News-Record
For awhile in 2023, part of the California Dept. of Transportation's (Caltrans) Fix 50 HOV lane and resurfacing project in Sacramento itself needed to be fixed. Reprinted courtesy of Elaine Silver, Engineering News-Record and Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story...

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Preventing Common and Costly Water Intrusion Events in Construction

July 13, 2026 — Andrew Swift - Construction Executive
Water leaking into a building is a leading cause of damage and loss in the construction industry. On one jobsite, heavy rains flooded a sub-basement, damaging a new electrical transformer—all because a roof drain was not property connected. On another jobsite, a drinking-fountain supply line broke in a multistory building that was undergoing renovation, causing water to run—undetected—for an entire weekend, resulting in water damage to all lower floors, where construction had been finished. Those loss scenarios could have been prevented with a comprehensive and effective water damage prevention plan (WDPP). This includes routine site inspections to identify uncontrolled water damage exposures and basic maintenance to make sure drains are clean of debris and divert them to a catch basin or low point away from the building. An effective WDPP plan also incorporates technology such as backflow preventers on sewer connections and water sensing technology to monitor the most vulnerable exposures. Reprinted courtesy of Andrew Swift, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Structural Engineer Claims Reinforcement Was Never Installed on Troubled NYC Tower

September 01, 2026 — Bryan Gottlieb - Engineering News-Record
New York City has expanded its investigation into the structural failure at the former Pfizer headquarters tower in Midtown Manhattan as the Dept. of Investigation confirmed a parallel inquiry and the Dept. of Buildings directed the property owner to retain third-party engineering oversight. Read the full story...
Reprinted courtesy of Bryan Gottlieb, Engineering News-Record
Mr. Gottlieb may be contacted at gottliebb@enr.com

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Did You Know: Unique Legal Considerations for Animal Care Facilities

August 24, 2026 — Hannah Skidmore - Construction Executive
Animal care facilities are highly specialized environments that require expertise far beyond traditional commercial or even standard medical construction. Whether designing and building animal shelters, doggy daycares, veterinary clinics or full-service animal hospitals, these facilities operate under conditions that introduce unique challenges related to sanitation, durability, animal behavior and operational workflows. Because of these complexities, projects that fail to account for animal care requirements adequately often encounter costly issues—many of which result in litigation. Below are real-world examples drawn from expert witness work, followed by proactive best practices construction professionals should apply to future animal care projects. Reprinted courtesy of Hannah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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