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Real Estate & Construction News Roundup (8/12/26) – Data Center Momentum Increases, Multifamily Construction Projects Decline, CRE Returns as Top Investor Preference

September 01, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, office vacancies fall, fair housing advocacy groups sue HUD, foreign buyers reduce purchases of U.S. residential real estate, and more!

• After a brief slowdown to begin the summer, data center construction planning momentum picked up in July, again shining as the brightest sector in building. (Zachary Phillips, Construction Dive)
• The number of finished multifamily construction projects declined last year — welcome news for multifamily operators eager to work through the recent supply wave — and a record share of new apartments were high-density. (Julie Strupp, Multifamily Dive)
• Fair housing advocacy groups sued the U.S. Department of Housing and Urban Development, claiming the agency’s funding restructuring drastically reduces their ability to receive funds from the Fair Housing Initiatives Program. (Ryan Kushner, Multifamily Dive)

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

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Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination

June 08, 2026 — Paul Williamson - ConsensusDocs
Volumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[4] As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor. Read the full story...
Reprinted courtesy of Paul Williamson, Peckar & Abramson, P.C.
Mr. Williamson may be contacted at pwilliamson@pecklaw.com

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World's Longest Immersed Tunnel Passes Milestone, But Faces Delays

August 03, 2026 — James Leggate - Engineering News-Record
Work on the $8-billion Fehmarnbelt Tunnel, which is planned to link Germany and Denmark as the world’s longest immersed tunnel, is progressing as crews achieved a milestone last month with the successful immersion of its first precast concrete element. But Danish state-owned project owner Femern A/S says the plan is now running at least two years behind schedule and the tunnel’s road and rail portions will open in two separate stages. Read the full story...
Reprinted courtesy of James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com

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Could Your Project-Level AI Prompt Become the Other Side’s Smoking Gun?

October 20, 2026 — Ryan Glass - ConsensusDocs
A dispute is brewing on the project. Wanting a quick assessment, the project manager opens ChatGPT, Claude, or another generative artificial intelligence (“AI”) platform. The project manager types the dispute background into the prompt, including concerns, explanations, and a frank discussion of what may have gone wrong on the contractor-side. The AI response identifies potential weaknesses in the contractor’s position, including possible failures to meet contractual obligations. Unhappy with the answer, the project manager starts a new chat, revises the prompt, and tries again. If the dispute escalates to arbitration or litigation, can the owner force the contractor to provide these prompts and the resulting responses? Frustratingly, the answer is: it depends. Courts have reached different conclusions. For now, the safest course is to involve your counsel before using AI to evaluate a demand letter, default notice, or threatened lawsuit, or before using AI to draft dispute-related emails, claim letters, or other communications that contain project-specific facts. Otherwise, what feels like a private conversation may later become key evidence for the opposing party. Read the full story...
Reprinted courtesy of Ryan Glass, Jones Walker LLC
Mr. Glass may be contacted at rglass@joneswalker.com

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What Construction Attorneys Do and When Contractors Need Them

August 11, 2026 — Construction Executive
Direct Answer A construction attorney advises contractors on contracts, payment rights, mechanic's liens, payment bond claims, change orders, delay claims, OSHA matters, defect claims, terminations and dispute resolution. The work covers far more than lawsuits—much of its value comes before a dispute ever becomes formal. Construction attorneys help contractors protect payment rights, manage project risk, resolve disputes and avoid contract terms that can turn a profitable job into a financial loss. Their work covers more than lawsuits. A construction attorney may review a contract before bid day, help preserve lien rights, respond to a defective work claim, prepare for mediation or defend a contractor after a safety citation. For contractors, legal counsel is often most valuable before a dispute becomes formal. A missed notice deadline, vague scope clause, unsigned change order or broad indemnity provision can create problems long before a claim is filed. Construction attorneys help identify those risks while there is still time to negotiate, document the issue or preserve leverage. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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We Won’t Permit That Excuse!

June 23, 2026 — Curt Martin & Richard Eiszner - ConsensusDocs
A Texas appellate court recently ruled that a building permit wasn’t a condition precedent for a construction project. That caught our attention. Can you build a commercial project without a permit? But as we read the case, we see the court’s reasoning. And it reminds us of an important legal principle that should inform our contract drafting and negotiation. The case was a civil suit brought by the project owner against its tenant improvement contractor for work on a medical spa. The owner claimed that the contractor didn’t perform the work properly and didn’t finish construction. The contractor argued that delays and problems were caused by the owner, alleging numerous failures, including the owner’s failure to secure a building permit. Reprinted courtesy of Curt Martin, Peckar & Abramson, P.C. and Richard Eiszner, Peckar & Abramson, P.C. Mr. Martin may be contacted at cmartin@pecklaw.com Mr. Eiszner may be contacted at reiszner@pecklaw.com Read the full story...

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Insurer Cannot Dispose of Water Leak or Bad Faith Claims on Motion for Summary Judgment

July 20, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The insurer’s motion for summary judgment seeking to eliminate the insured’s claims for damage from a water leak, bad faith and punitive damages failed. Nargizyan v, State Farm General Ins. Co., 2026 Cal App. LEXIS 302 (Cal. Ct. App. April 15, 2026). The insured noticed tiles on his kitchen floor were warmer than usual. He found water dripping from the top of the crawl space under the house. He noticed water was “dripping in different places” but not pouring like a faucet. “There were too many places to count where water was dripping and there was water all over the place.” 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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Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements

June 29, 2026 — Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & Wilmer
A Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026) OVERVIEW The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law). KEY HOLDINGS 1. All Voting and Formal Actions Must Occur in Open Meetings The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session. Reprinted courtesy of Jill Casson Owen, Snell & Wilmer, Benjamin J. Hawkins, Snell & Wilmer and Stephen Wright, Snell & Wilmer Ms. Owen may be contacted at jowen@swlaw.com Mr. Hawkins may be contacted at bhawkins@swlaw.com Mr. Wright may be contacted at swright@swlaw.com Read the full story...

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