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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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A Customized Approach to Data Center Construction

June 29, 2026 — James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law Blog
Data center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions. Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements. Reprinted courtesy of James P. Bobotek, Pillsbury, Arielle L. Murphy, Pillsbury and Robert A. James, Pillsbury Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com Mr. James may be contacted at rob.james@pillsburylaw.com Read the full story...

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Appeals Court Upholds Skanska, Granite Win in ‘I-4 Ultimate’ JV Dispute

June 15, 2026 — Bryan Gottlieb - Engineering News-Record
A federal appeals court has upheld a lower court’s decision requiring The Lane Construction Corp. to pay roughly $79 million in damages, plus interest, to joint venture partners Skanska USA Civil Southeast and Granite Construction for work on Florida’s I-4 Ultimate highway megaproject in Orlando, which was completed in 2022. 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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Insured Does Not Prevail on Summary Judgment Motion Invoking Ensuing Loss Provision

May 05, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insured’s motion for summary judgment finding genuine issues of fact regarding implication of the policy’s ensuing loss provision. Stella Prop. Dev.. & Event Productions, LLC v. Auto-Owners Ins. Co., 2026 U.S. Dist. LEXIS 15854 (W.D. Pa. Jan. 28, 2026). Stella owned a cultural center that was insured under a commercial property all-risk policy issued by Auto-Owners. A windstorm with gusts of 65 miles per hour struck the Center causing damage. The Center’s inspector found extensive wind damage on nearly all facets of the roof. Further, the inspector found the existing organic shingles were in “very poor condition” and were “defective, discontinued, and no longer available.” The estimated cost of repairs to the roof was $108,010.52. 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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Samuel Alhadeff Represents LGI Homes in Acquisition and Re-Entitlement of Maravilla Estates

July 06, 2026 — Lewis Brisbois
Temecula Partner Samuel Alhadeff recently represented LGI Homes in its acquisition and re-entitlement of Maravilla Estates, a 169-lot active adult community located in San Jacinto, California. The acquisition and re-entitlement of the project provide LGI Homes with the opportunity to deliver much-needed age-qualified housing in one of Riverside County's growing residential markets. The community includes a recorded final map and finished lots, as well as future development inventory and planned amenities, positioning the project for continued development and completion. Read the full story...
Reprinted courtesy of Lewis Brisbois

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Are Robotic Coworkers Soon a Reality in Construction?

March 24, 2026 — Aarni Heiskanen - AEC Business
General-purpose humanoid robots are in the headlines, but is the hype justified? What’s the point of having a robot home assistant when it still needs a “guy behind the curtain” to control it remotely? Despite the challenges, robots, even those that look like humans, are seriously considered as future coworkers in business environments. According to the McKinsey report ‘Will embodied AI create robotic coworkers?‘ the idea that AI-powered robots will become general-purpose coworkers is grounded in real technological progress, but not an overnight reality. 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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Are “Financial Hardship” Damages Recoverable?

June 08, 2026 — David Adelstein - Florida Construction Legal Updates
In a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages. As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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A Green Light for Housing? What Executive Order 14394 Means for Your Next Project

May 26, 2026 — Bennett Houck, Miranda Martinez & Byron Sarhangian - Snell & Wilmer
On March 13, 2026, President Trump signed Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction” (the “Order”). The Order directs federal agencies to reduce regulatory burdens on residential development, streamline environmental permitting, and encourage state and local governments to adopt housing-friendly policies. The Order includes several key provisions that developers and homebuilders should be aware of moving forward. Key Provisions The Order targets four main areas: 1. Federal Environmental Regulations First, it directs the Secretary of the Army and Environmental Protection Agency (EPA) to revise permitting standards, including stormwater permits, wetlands permits under Section 404 of the Clean Water Act, and related construction-site requirements. The Order also targets energy-efficiency mandates for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) financed housing. For developers and homebuilders, these revisions could reduce project delays and compliance costs associated with stormwater management, wetlands mitigation, and energy-efficiency upgrades, expenses that often add significant time and cost to residential development projects. Reprinted courtesy of Bennett Houck, Snell & Wilmer, Miranda Martinez, Snell & Wilmer and Byron Sarhangian, Snell & Wilmer Mr. Houck may be contacted at bhouck@swlaw.com Ms. Martinez may be contacted at mimartinez@swlaw.com Mr. Sarhangian may be contacted at bsarhangian@swlaw.com Read the full story...

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