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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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LA Fire Victims Can Pursue City Utility Claims, Judge Rules

March 10, 2026 — Jef Feeley & Maxwell Adler - Bloomberg
The water and power utility that serves the city of Los Angeles must face hundreds of lawsuits faulting its response to the massive 2025 wildfire that leveled one of the city’s premier seaside neighborhoods and caused tens of billions of dollars in damage. In a significant victory for fire victims, Los Angeles Superior Court Judge Samantha Jessner concluded in a written ruling Thursday that a unique California law allows property and business owners to pursue claims that the Los Angeles Department of Water and Power failed to supply enough water to fight the blaze that consumed the Pacific Palisades area. Over strong objections from lawyers for the nation’s largest public utility, Jessner finalized a tentative ruling she issued last week concluding victims have a legal basis to move forward with allegations a city reservoir drained for repairs left fire hydrants with inadequate water pressure and helped the wind-whipped blaze get out of control. Reprinted courtesy of Jef Feeley, Bloomberg and Maxwell Adler, Bloomberg Read the full story...

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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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Your AEC Firm Has a Memory Problem. Here Is How to Fix It

June 01, 2026 — Aarni Heiskanen - AEC Business
AEC companies trying to operationalize AI often find they lack the data foundation on which to build. There may be an abundance of data hidden in documents, but you can’t reliably use it for AI. The lack of data quality was a key topic discussed at the AI in AEC 2026 conference. During the event, I met many experts working to solve this problem, including Pavlina Nikolova, Egnyte‘s EMEA AEC Practice Lead. The chat and her presentation highlighted the challenges and ways to overcome them. 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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Every High-Tech Building Has Many Lifespans

August 16, 2026 — Aarni Heiskanen - AEC Business
When I worked as an architect, our team designed a laboratory for fuel research. The facility included a large research hall where various boilers and other devices were tested and analyzed. The setup required extensive floor channeling under the thick concrete floor. We suggested building a modular system that would allow flexibility in the future, when requirements would certainly change. They did not want that because of budget constraints. The high-tech construction trend is spreading. Data centers, semiconductor fabs, battery plants, and life science facilities share one property that sets them apart from ordinary buildings. The technology inside turns over faster than the structure around it. Server generations change every three to five years. Rack densities have risen from 10 or 20 kW to 130 kW and beyond in just a few years. A high-tech facility is really several buildings with different lifespans inside one envelope, and we keep designing them as if they were one. The failure is not that things become obsolete. It is that we never say when each layer is expected to. 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 Secures Illinois Appellate Victory for Architectural Firm in Implied Warranty Dispute

May 14, 2026 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute. The case arose following an entity’s purchase of a 111-unit building for use as an investment or rental property. The plaintiff made claims against the architect of the building, alleging that there were design defects that breached an implied warranty, as well as a negligence claim. GRSM argued that an architect could not be liable for implied warranties, particularly for an implied warranty which no Illinois court has ever recognized. GRSM further argued that Illinois law bars an architect from liability for negligence arising from a duty pursuant to contract under the economic loss doctrine. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications

March 31, 2026 — David Adelstein - Florida Construction Legal Updates
An older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages. In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Kahana Feld Obtains Favorable Result in High-Exposure NY Premises Liability Case

June 15, 2026 — Leigh Katz - Kahana Feld
Kahana Feld partner Leigh Katz obtained a significant victory in a recent matter involving a videotaped alleged trip and fall on the sidewalk in front of the client’s commercial residence. The plaintiff claimed he suffered a knee injury that necessitated surgery, along with other assorted injuries that prevented him from continuing high-level athletic activities. Leigh was able to demonstrate that the fall was staged and received a voluntary discontinuance with prejudice. At mediation, Leigh emphasized that KF’s expert witness challenged the plaintiff’s claim that the fall was caused by a sidewalk height differential after reviewing the videotape footage and determining the plaintiff’s fall began before his feet made contact with the alleged defect. Based on this analysis, the expert concluded the reported height differential did not initiate the fall, which supported KF’s position that the incident depicted in the video was unrealistic and appeared staged. Read the full story...
Reprinted courtesy of Leigh Katz, Kahana Feld
Ms. Katz may be contacted at lkatz@kahanafeld.com

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