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Real Estate & Construction News Roundup (3/18/25) – Data Center Frenzy, China’s Expanding REIT Market and Tariff-Affected Construction Costs

March 31, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, relistings reached highest total in a decade, Florida State Legislature passes bill to increase the state’s housing supply, data center construction adapts to changes and more!

• The data center construction frenzy and a new, potentially larger highway bill were top of mind for builders during the latest round of contractor earnings calls and financial reports. (Joe Bousquin, Construction Dive)
• Tariffs and associated policy uncertainty have increased construction costs and delayed leasing and investment choices. (J.P. Morgan)
• Relistings hit the highest January figure since Redfin began tracking this metric a decade ago. (Diana Olick, CNBC).

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

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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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A Permitting Base Checklist for Data Centers and Power Plants

June 02, 2026 — Michael S. McDonough, Stephen J. Humes & Stacey C. Wright - Gravel2Gavel Construction & Real Estate Law Blog
There is a lot of talk these days about “license to operate” for data centers, meaning management of the relationships with stakeholders and broader communities concerning both the benefits and adverse consequences of locating a facility in a particular locale. Here, we are speaking of “license to operate” more literally—namely, the legal and regulatory permitting and approval requirements for a privately owned data center whether by itself or colocated with a power generating plant. Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example. (Taking legal authority Frank Sinatra out of context, “If you can make it there, you can make it anywhere.”) The actual requirements for a given facility would depend, in part, on local law, including planning and zoning laws and plans, and the environment of the site. Just as examples, additional permitting and mitigation requirements might apply if sensitive receptors are located nearby (e.g., noise mitigation for residential dwellings), if sensitive and protected biological resources (e.g., jurisdictional waters and/or protected species) would be impacted, or if the present or former land uses require additional measures (e.g., hazardous materials remediation, mitigation for conversion of prime farmland, or protection of cultural resources). The scope of permit requirements would ultimately be determined by the applicable regulatory agencies and by the lead and responsible agencies under the applicable state environmental land use regime—in our reference case here, the California Environmental Quality Act (CEQA). Reprinted courtesy of Michael S. McDonough, Pillsbury, Stephen J. Humes, Pillsbury and Stacey C. Wright, Pillsbury Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com Mr. Humes may be contacted at stephen.humes@pillsburylaw.com Ms. Wright may be contacted at stephen.humes@pillsburylaw.com Read the full story...

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Pursuing Claims for Loss Caused by Recent Kona Low Storms for Homeowners and Businesses

May 12, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The recent Kona Low storms that hit all islands were devastating, causing significant property damage. Homeowners and businesses will be seeking coverage under their insurance policies to recover for their losses. Here is a brief look at what may be covered and which exclusions may be troublesome in homeowners’ and commercial property policies. Typically, both a homeowners’ policy and a commercial property policy include a grant of coverage for “direct physical loss of or damage to Covered Property.” Covered perils are listed, including such events as fire, lightning, or windstorm. Covered Property includes dwellings, other structures on the property and personal property. Additional coverages are usually provided. This includes debris removal after a peril insured against or collapse of a structure. In a homeowners’ policy, additional living expenses are likely covered when the damaged home is not fit to live in. 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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ACEC Supports BUILD America 250 Act as Important First Step on Surface Reauthorization

May 26, 2026 — The American Council of Engineering Companies
WASHINGTON -- The American Council of Engineering Companies (ACEC), the business voice of America’s engineering and design services industry released the following statement on the BUILD America 250 Act: "Chairman Graves and Ranking Member Larsen have taken an important bipartisan step toward reauthorizing the federal surface transportation programs that are critical to economic growth in every state. The BUILD America 250 Act provides five years of stability in funding road and transit projects, raises new revenues to address the solvency of the Highway Trust Fund, and includes meaningful provisions to strengthen project delivery, advance digital infrastructure, and improve the contracting framework that engineering firms rely on every day. ACEC will continue to advocate for investment levels that keep pace with the country's growing infrastructure needs, and we urge the Committee to keep this process moving forward." The American Council of Engineering Companies (ACEC) is the business association of America’s engineering industry, representing more than 5,500 independent engineering firms and more than 650,000 professionals throughout the United States engaged in the development of America’s transportation, water, and energy infrastructure, along with environmental, industrial, and other public and private facilities. Founded in 1906 and headquartered in Washington, D.C., ACEC is a national federation of 51 state and regional organizations.

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OC Streetcar Project Mediation Sets $50M Payment to Walsh

July 20, 2026 — Richard Korman - Engineering News-Record
Walsh Construction told a California state court judge last month that lawsuit mediation of its claims on an Orange County light-rail project—known as OC Streetcar—had produced a settlement of some claims under which the county agreed to pay the contractor almost an additional $50 million. Read the full story...
Reprinted courtesy of Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com

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Indiana District Court Finds Crane Inspection Services Do Not Trigger “Professional Services” Exclusion in Liability Policy

February 17, 2026 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Crane 1 Holdco, Inc. et al. v. Continental Ins. Co., 23-cv-205 (N.D. Ind. Jan 12, 2026), the District Court for the Northern District of Indiana had occasion to interpret the scope and meaning of the term “professional services” in an excess liability policy exclusion. By way of background, Robert Coppage was crushed by a crane while at work. He was seriously injured and later received a significant settlement in a state court civil action against the company that inspected the crane, Crane1. Crane1 sought coverage for the settlement under a first layer excess policy issued by Continental Insurance Company, which included an exclusion for any “liability arising out of the actual or alleged rendering of, or failure to render, any professional services by the Insured or any other person for whose acts the Insured is legally responsible.” The underlying complaint alleged that Crane1 was negligent in its modification, services, maintenance, inspection, and/or repair of the crane. Read the full story...
Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

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Communication Gaps Can Cost Construction Firms in the Data Center Boom

June 02, 2026 — Mike Lewis - Construction Executive
The data center construction boom is transforming the construction industry at a historic pace. Fueled by cloud computing, artificial intelligence and relentless demand for digital infrastructure, data centers have become one of the fastest-growing project types in the built environment. Billions of dollars are flowing into new facilities and expansions, creating unprecedented opportunities for construction firms positioned to deliver reliably. But opportunity alone does not guarantee success. As competition intensifies, communication failures and poor information management are emerging as some of the most common (and costly) reasons firms lose margins, miss deadlines or fail to secure repeat work. In data center construction, where schedules are compressed and tolerance for error is minimal, even small breakdowns in communication can have outsized consequences. Reprinted courtesy of Mike Lewis, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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