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Real Estate & Construction News Roundup (3/11/25) – An AI Inflection Point for Hotels, Investor Pivot in Build-to-Rent and Looming Legislation for Single-Family Investors

March 24, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, lodging demand for World Cup brings growth, commercial property management firms use of AI becomes firmer, construction industry shows slow start to the year, and more!

• The hotel industry has reached an inflection point, where owners and developers are embracing artificial intelligence more, but are also increasingly in need of greater guidance on how to convert early adoption into long-term returns. (Jenna Graber, Hotel Dive)
• While the upcoming 2026 FIFA World Cup is expected to bring notable RevPAR gains to U.S. host cities, the overall domestic impact will be negligible. (Noor Adatia, Hotel Dive)
• Company leaders’ often vague predictions of how AI will be adopted are giving way to more fully formed strategies in the commercial real estate industry. (Joe Burns, Facilities Dive)

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

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Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions

May 12, 2026 — David Adelstein - Florida Construction Legal Updates
Contract drafting and interpretation matters. A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case here where the appellate court reversed based on the prefatory language. But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:

Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.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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GRSM Team Obtains Defense Verdict for Homeowners’ Association in Orange County Superior Court

July 20, 2026 — Gordon Rees Scully Mansukhani
A Gordon Rees Scully Mansukhani multi-state team, including Partners Christine Barker, Sean Ferron, and Keith Cramer, obtained a defense verdict on behalf of a homeowners’ association (HOA) in an Orange County Superior Court bench trial spanning two months. The case began in 2022 when a homeowner sued after the Architectural Review Committee and HOA Board of Directors declined his teardown-and-rebuild plans due to view and aesthetic concerns. After a motion for summary judgment ruling in which the court found that the existing covenants, conditions, and restrictions (CC&Rs) did not protect views, the HOA held a special election to add explicit view protections to the CC&Rs. At the February 2025 trial call, the plaintiff sought leave to file a third amended complaint challenging the validity of that vote, drastically reframing the case from CC&R enforcement to one of election validity. A second plaintiff then filed a parallel action toward the end of the limitations period, and the two cases were consolidated. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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Bad Faith Claim Survives Summary Judgment

June 08, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026). On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church. 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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Water Reuse Emerges as a Critical Strategy for Data Center Development

June 22, 2026 — Ashleigh Myers, Jillian Marullo & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law Blog
As demand for data centers continues to accelerate, water availability is emerging as a critical factor in project development and long-term operations. Although power supply and transmission access have historically dominated siting discussions, increasing water constraints in many regions are placing greater focus on the substantial volumes of water required to support data center cooling systems. As we covered previously, data centers are frequently located in areas already experiencing water stress and require substantial volumes of water to operate—roughly 228 billion gallons in 2023 in the United States alone—with water use projected to increase by up to 170% by 2030. Alternative cooling options, such as free-air cooling or mechanical chillers, can reduce direct water consumption but introduce their own tradeoffs. Free-air cooling is climate-dependent and often ineffective in hotter regions, while mechanical chillers increase energy demand, potentially shifting water consumption upstream through increased electricity generation. Reprinted courtesy of Ashleigh Myers, Pillsbury, Jillian Marullo, Pillsbury and Jason Drogin Atwood, Pillsbury Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com Read the full story...

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Fatalities Edge Down: New Data Reveals a Promising Decline

April 27, 2026 — Construction Executive
Construction fatalities in the United States declined slightly in 2024, according to new data released from the U.S. Bureau of Labor Statistics. The sector recorded just over 1,000 worker deaths last year—a modest decrease from the previous year but still among the highest totals of any industry. Falls remained the leading cause of death, accounting for roughly one-third of all construction fatalities. Transportation incidents—including workers struck by vehicles or equipment—ranked second, followed by contact with objects or equipment and electrocutions. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Lost in Translation: AEC Tech’s Missing Role

May 12, 2026 — Aarni Heiskanen - AEC Business
I once visited a construction site where the contractor’s headquarters had commissioned a tech company to build an on-site quality-inspection application. The developer had admitted to the site engineer that they had never set foot on a construction site before. The engineer showed me what he was actually using: his own phone camera and an Excel sheet. The new app did not map to how work actually happened on site. This is not an isolated story. The vendor builds something technically coherent but operationally disconnected. The client, somewhere up the chain, had fallen in love with the idea of the solution before anyone had built an honest business case for it. The result is a tool that gets demonstrated at a board meeting but isn’t used in the field. 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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