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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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The Seventh Circuit Rejects Navigators Insurance Company’s Attempt to Escape Additional Insured Coverage For a Gas Explosion

March 24, 2026 — Kyle A. Rudolph & Anna M. Perry - Saxe Doernberger & Vita, P.C.
In a recent Seventh Circuit decision, Atlanta Gas Light Company v. Navigators Insurance Company, the court addressed a theme that policyholders are often confronted with by insurers[1] – insurers disputing additional insured coverage where the named insured is not named in the underlying action. The court aptly rejected this position since it was undisputed that the bodily injuries alleged in the underlying lawsuits were due to a gas explosion that was “caused, in whole or in part, by” the named insured’s acts or omissions. I. Background The additional insureds, Atlanta Gas Light Company and Southern Company Gas (collectively, “AGL”), retained the named insured, United States Infrastructure Corporation (“USIC”), to locate and mark gas lines that AGL owned in Georgia. USIC failed to mark a certain gas line, which was later struck by a boring company, leading to an explosion that injured three people. Reprinted courtesy of Kyle A. Rudolph, Saxe Doernberger & Vita, P.C. and Anna M. Perry, Saxe Doernberger & Vita, P.C. Mr. Rudolph may be contacted at KRudolph@sdvlaw.com Ms. Perry may be contacted at APerry@sdvlaw.com Read the full story...

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Shane Singh Named One of Los Angeles Business Journal's 'Top 100 Lawyers of Los Angeles' for 2026

April 27, 2026 — Lewis Brisbois
Sacramento Partner Shane Singh has been named one of the Los Angeles Business Journal's "Top 100 Lawyers of Los Angeles" for 2026. The LABJ’s annual list honors Los Angeles' top lawyers for their achievements within the city's business community. Read the full story...
Reprinted courtesy of Lewis Brisbois

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White and Williams LLP Ranked in the Chambers USA 2026 Guide

June 15, 2026 — White and Williams LLP
White and Williams LLP is proud to celebrate the Chambers USA 2026 Guide which has ranked several of the Firm's attorneys and practice groups, underscoring the Firm's overall commitment to providing client service excellence. The Chambers USA 2026 Guide recognized attorneys Tim Davis, Managing Partner, and Nancy Frantz, Chair of the Real Estate Group, for Real Estate: Finance in the state of Pennsylvania. Randy Maniloff, Partner, Patricia Santelle, Chair Emeritus/Former Managing Partner, and Robert Walsh, Partner were ranked for Insurance in Pennsylvania, and Thomas Pinney, Partner, was ranked in Pennsylvania for Bankruptcy/Restructuring. In the state of Maryland, Partners David Gilliss and Eric Korphage were recognized for their work in Construction. Read the full story...
Reprinted courtesy of White and Williams LLP

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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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Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field

June 15, 2026 — Jack Mayo - ConsensusDocs
Introduction As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined. For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site? Read the full story...
Reprinted courtesy of Jack Mayo, Jones Walker LLP
Mr. Mayo may be contacted at jmayo@joneswalker.com

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Insurer Dispenses with Bad Faith Claim on Summary Judgment

June 22, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer’s motion for partial summary judgment because the insured failed to present evidence that the insurer failed to conduct a reasonable investigation. PSY Burger, LLC v. State Farm General Insurance Company, 2026 U.S. Dist. LEXIS 66991(C.D. Cal. March 20, 2026). The insured’s commercial property suffered heavy damage from tropical storm Hilary. State Farm denied coverage to repair the damage. The insured sued State Farm alleging breach of contract and bad faith due to an inadequate investigation. Apparently, the insured did not retain an expert to opine on claims handling. 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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AI Adoption in Construction: A UK Practitioner’s View

April 20, 2026 — Aarni Heiskanen - AEC Business
I recently talked with Chris Brady, an AI adoption consultant based in Birmingham, UK, who has spent 18 years working in construction. Two years ago, he began integrating AI into his work with contractors and SMEs, initially as an add-on service, and it has since become his main business. Chris now runs Metrix, an AI consultancy focused on UK construction companies, alongside two other ventures: Trade Upskill, an education platform for construction professionals, and ctrldash.ai, a compliance-automation SaaS for construction SMEs, both of which are soon to launch. What struck me most in our conversation was how grounded his approach is, built on years of direct industry experience rather than arriving from outside with a technology solution looking for a problem. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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