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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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Modern Building-Sundt $17M Claim Is Stranded by Hospital Bankruptcy

April 27, 2026 — Richard Korman - Engineering News-Record
A $16.9-million claim for work on a hospital addition by a joint venture of contractors Modern Building Co. and Sundt Construction is stuck and delayed indefinitely following the California hospital's December bankruptcy filing. 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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Ahlers Cressman & Sleight named one of the Top 50 Construction Law Firms

August 11, 2026 — Ahlers Cressman & Sleight PLLC
Ahlers Cressman & Sleight PLLC is pleased to announce its fifth consecutive year of recognition by Construction Executive as one of The Top 50 Construction Law Firms. Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry. Construction Executive established the rankings by asking over 600 U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2025 revenues from the firm’s construction practice; the number of attorneys in the firm’s construction practice; the percentage of the firm’s total revenues derived from its construction practice; the number of states in which the firm is licensed to practice; the year in which the construction practice was established; and the number of construction industry clients served during the fiscal year 2025. Read the full story...
Reprinted courtesy of Ahlers Cressman & Sleight PLLC

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4th Department Narrowly Interprets Professional Services

August 11, 2026 — Craig Rokuson - Traub Lieberman
In the recent case of Cty. of Erie v. Selective Ins. Co. of Am., 2026 NY Slip Op 04092 (App. Div. 4th Dept.), New York’s Appellate Division, Fourth Department held that a general liability carrier for a construction manager owed additional insured coverage to the County of Erie, notwithstanding an exclusion in the construction manager’s policy for injuries arising out of professional services. The underlying case involved injuries sustained when the underlying plaintiff fell off of her bicycle at a park owned by the County when she transitioned from the pavement edge to grass. Read the full story...
Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

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Settlement Agreements and Contracts Require a Meeting of the Minds

July 20, 2026 — David Adelstein - Florida Construction Legal Updates
A settlement agreement does not need to be executed for it to be enforceable as long as there was a MEETING OF THE MINDS. The same rings true for any contract regardless of whether the contract is signed – THERE NEEDS TO BE A MEETING OF THE MINDS. In a recent case dealing with the settlement agreement on a construction lien, the essential settlement terms (money and mutual release) were memorialized in an e-mail exchange between the parties (owner and subcontractor). The settlement required the owner to pay the principal amount plus some attorney’s fees and then a mutual general release would be prepared. In response to the confirmatory email, the owner sent a check, which the subcontractor deposited, but the owner refused to sign the release signed and sent by the subcontractor. The owner further claimed it doesn’t need to pay the attorney’s fees because the lien amount was paid in full. The subcontractor sued arguing the owner breached the terms of the settlement. The appellate court agreed. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Steel Cooling: Steel Costs Steadily Decline After Pandemic Price Shock

May 12, 2026 — Construction Executive
Steel prices have continued trending downward after several years of volatility, according to Gordian’s latest analysis based on RSMeans Data. After dramatic spikes during the pandemic-era supply disruptions, the market has gradually stabilized as supply chains improve and demand softens in some construction segments. However, selective volatility and tariff uncertainty continue to influence pricing across the sector. Key findings from the report include:

• Steel prices declining: The national average price of structural steel fell to about $2,343.93 per ton in January 2026, down 5.38% from the previous quarter and 7.18% year over year.
• Longer-term price correction: Steel costs have been trending downward since 2024 after earlier volatility driven by inflation, supply shortages and global demand swings.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. 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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PSA: Be Sure to Document (Even When Time is Short)

April 14, 2026 — Christopher G. Hill - Construction Law Musings
Written change orders are a big deal. Almost all construction contracts (at least the well drafted ones) require written contracts. Written change orders are even important enough that Virginia law requires these provisions in residential construction contracts. Why are they so important? Because they are a “mini-contract” of sorts. They set the expectations, price, time, and work to be performed; work that was not included in the original price or scope for the project. Without this in writing, there will be no record of what the parties agreed to do. Does this sound familiar? Sound like its own contract? It should. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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