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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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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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Texas Adopts New Procedural Rules for Summary Judgment Motions: What You Need To Know

July 13, 2026 — Conor G. Bateman & Marsha Cotton - Snell & Wilmer
On March 1, 2026, sweeping amendments to Texas Rule of Civil Procedure 166a took effect, fundamentally changing how Texas courts handle summary judgment motions — from filing and briefing through disposition. Whether representing a plaintiff or defendant, Texas litigants and attorneys must understand these new rules and their impact on case strategy and timelines. These procedural changes carry particular significance for construction litigants. Background: The Prior Rule Texas summary judgment practice has long diverged from the federal model. The Texas Rules of Civil Procedure recognize two types of summary judgment motions: (1) the traditional motion for summary judgment, and (2) the “no-evidence” motion for summary judgment. The no-evidence motion — unique to Texas — may be filed only after adequate time for discovery has passed. No bright-line rule governs that determination; it depends on the unique circumstances of each case. Reprinted courtesy of Conor G. Bateman, Snell & Wilmer and Marsha Cotton, Snell & Wilmer Mr. Bateman may be contacted at cbateman@swlaw.com Ms. Cotton may be contacted at mcotton@swlaw.com Read the full story...

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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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Ownership and Licensing in Design Agreements

April 14, 2026 — Abby Dvorkin - Snell & Wilmer
The ownership and licensing of design documents in professional services agreements play a significant role in protecting the interests of the design professional and the project owner during and after project completion. The ownership or licensing of the drawings provision typically outlines who owns the drawings and specifications, who can use the documents, and how the documents can be used during and after the project. Project owners and developers should understand that payment for design services does not automatically transfer ownership or an exclusive right to use the professional design. Under U.S. copyright law, the default rule is that the design professional retains ownership of the instruments of service absent a contractual provision transferring ownership or a license. See 17 U.S.C. § 101, et seq. The Architectural Works Copyright Protection Act provides that copyright protection applies to “pictorial, graphic and sculptural works” and includes “architectural works.” 17 U.S.C. § 102. A design professional may only transfer copyright ownership in writing. 17 U.S.C. § 204(a). Read the full story...
Reprinted courtesy of Abby Dvorkin, Snell & Wilmer
Ms. Dvorkin may be contacted at advorkin@swlaw.com

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CEO: Power Isn’t the Only Electrical Challenge for AI Data Centers

April 14, 2026 — Francesco "Frio" Iorio - Engineering News-Record
Everyone knows that data centers are voracious consumers of electricity. In fact, the U.S. is currently scrambling to meet unprecedented levels of power demand not seen since the early days of electrification and the widespread adoption of air conditioning. Read the full story...
Reprinted courtesy of Francesco "Frio" Iorio, Engineering News-Record
ENR may be contacted at enr@enr.com

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Spain’s Sagrada Familia: Contemporary Construction Methods Speed Iconic Basilica to Completion

March 24, 2026 — Pam McFarland - Engineering News-Record
In 2014, the entity behind construction of one of the world’s most iconic churches—the wildly imaginative Sagrada Familia basilica in Barcelona, Spain—contacted global consultant Arup with a challenge: Could the firm help the project team update designs developed more than a century earlier, to ensure that a critical project component was built to be structurally sound? Read the full story...
Reprinted courtesy of Pam McFarland, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com

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Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict

May 26, 2026 — Gray Development Group
PHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction. The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale. The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market. According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona. Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing. ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997. About Gray Development Group Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.

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