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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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Structural Concerns Force Emergency Closure of Maryland Office Building

August 16, 2026 — Jim Parsons - Engineering News-Record
A 10-story Baltimore-area office building was evacuated after an underground parking structure was compromised during construction work. Read the full story...
Reprinted courtesy of Jim Parsons, Engineering News-Record
ENR may be contacted at enr@enr.com

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Anti-Concurrent Causation Clause Prevents Coverage for Collapse

April 27, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court affirmed the decision of the trial court granting summary judgment to the insurer after agreeing that the policy’s anti-concurrent causation clause barred coverage. Lido Hospitality, Inc. v. AIX Specialty Ins. Co., 2026 Iii. App. Unpub. LEXIS 133 (Ill. Ct. App. Jan. 27, 2026). One of the brick veneer walls of the Lido Motel collapsed during a windstorm. Lido reported the loss it its insurer, AIX. AIX investigated and determined that the brick veneer collapsed due to pervasive wear and tear and corrosion of the underlying infrastructure that secured the veneer- specifically the components that anchored or tied the masonry veneer to the underlying wooden substrate. 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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Fourth Circuit Extends Coverage to Contractor

May 14, 2026 — Hunton Insurance Recovery Blog
The Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured. Read the full story...
Reprinted courtesy of Hunton Andrews Kurth LLP

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Supply Chain Is a Legal Exposure—Not Just a Force Majeure Problem

September 08, 2026 — Owen Newman - Construction Executive
This is not another force majeure article. The supply-chain related legal exposure that contractors are carrying today—in sanctions risk, specification non-compliance, warranty exposure and regulatory volatility—extends well beyond what even a well-drafted force majeure clause protects. An engineering, procurement and construction contractor on a gas-fired power plant discovers during commissioning that transformer oil in a critical unit contains Russian-origin naphthenic base oil, which is a prohibited source under Office of Foreign Assets Control sanctions. The contractor didn’t source it. A subsupplier two tiers below made the substitution when disruptions in the Strait of Hormuz tightened the primary supply chain for this specialty product and no one in the purchase-order chain flagged it. The procurement decision is long done and the documentation trail that should have caught it doesn’t exist. Reprinted courtesy of Owen Newman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...
Mr. Newman may be contacted at oknewman@duanemorris.com

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Tony Sonnett Secures Highly Favorable Verdict for Client in Admitted Liability Case in Which Plaintiff Sought $34.5M

September 29, 2026 — Lewis Brisbois
Los Angeles Partner Tony Sonnett recently obtained a highly favorable verdict for his property owner client in an admitted liability case in which the plaintiff had asked for $34.5 million, with a jury awarding just $75,000. The plaintiff, who was a tenant at one of the client’s rental properties, was injured in October 2020 as he was attempting to close the heavy metal blinds that were affixed to the 12-foot floor-to-ceiling windows of the property. The blinds and their heavy metal covering detached from the wall and fell on the plaintiff’s head, causing him to suffer a scalp laceration that required stitches. Read the full story...
Reprinted courtesy of Lewis Brisbois

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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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11 Payne & Fears Attorneys Honored by Best Lawyers

August 24, 2026 — Payne & Fears
Congratulations to the 11 Payne & Fears attorneys included in the 2027 Edition of “Lawyer of the Year” and The Best Lawyers In America®. Attorneys have been recognized in the following practice areas: “Lawyer of the Year” (2027 Edition) Orange County

• Benjamin A. Nix
• Trade Secrets Law

The Best Lawyers in America® (2027 Edition) Irvine, CA

• Jeffrey K. Brown
• Employment Law – Management
• Labor Law – Management
• Litigation – Labor and Employment

• Daniel F. Fears
• Employment Law – Management
• Labor Law – Management
• Litigation – Labor and Employment

• Daniel M. Livingston
• Commercial Litigation
• Litigation – Real Estate

Read the full story...
Reprinted courtesy of Payne & Fears

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