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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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Inaccurate Representations Can Lead to Differing Site Conditions Claim

May 26, 2026 — David Adelstein - Florida Construction Legal Updates
In the prior posting, I discussed a case dealing with a differing site condition. In that case, the owner did not have an affirmative duty to make a representation and there was no inaccurate representation made by the owner that misled the contractor. Well, what about when there is an inaccurate misrepresentation regarding the site? This was the circumstance in an older Florida case where a dredging contractor had a successful differing site conditions claim. See Jacksonville Port Authority v. Parkhill-Goodloe, Co., Inc., 362 So.2d 1009 (Fla. 1st DCA 1978). The government provided inaccurate information as to the lack of rock that would be encountered during the dredging that was relied on by the dredging contractor. But the government had “superior knowledge” that there was rock in an adjacent location based on a prior claim from a contractor, yet the government did not disclose the possibility that rock could be encountered. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Contract Interpretation – Determining What the Contract Requires

March 24, 2026 — David Adelstein - Florida Construction Legal Updates
A good ole dispute on contract interpretation in government contracting. Contract interpretation disputes happen all the time in every jurisdiction under the sun. Think about that. Now, what’s the best way to avoid a contract interpretation dispute? Naturally, invest in the contract language and fully understand the scope of work. Make all of this clear. But, of course, this isn’t foolproof meaning you could still be doing this and you could still find yourself in a contract interpretation dispute. Although, if you are doing this, and being proactive, the contract interpretation disputes should be minimal and more streamlined. In Liberty Technical Services, LLC v. Department of Veterans Affairs, CBCA 8385, 2026 WL 407656 (CBCA 2026), the dispute centered on whether the government owed the contractor for certain, necessary equipment (largely controllers, but also tanks and pumps) not specified in the contract. The government countered that this should be a non-issue because the contractor always acknowledged it was responsible for furnishing the unspecified, necessary equipment, and the contractor did actually provide the equipment without direction from the government. Each party claimed the contract was unambiguous when construed in context. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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U.S. Supreme Court Decision Alters Course of $745M Louisiana Coastal Damage Judgment

June 15, 2026 — Jennifer Kretschmann & Jennifer E. Michel - Lewis Brisbois
The U.S. Supreme Court has issued a unanimous decision allowing oil and gas companies to move Louisiana coastal erosion lawsuits from state court to federal court under the federal officer removal statute. While the ruling is procedural, it carries significant implications for environmental- and energy-related risks. The case, Chevron U.S.A. Inc. v. Plaquemines Parish, Louisiana, Slip Op. 24-813 (April 17, 2026), addressed a threshold jurisdictional question but has broader significance for environmental and climate related litigation. State courts are often viewed as more favorable forums for plaintiffs asserting environmental damage claims, particularly those brought by governmental entities. The opinion issued on April 17, 2026 is the latest development in long-running Louisiana coastal litigation that began more than a decade ago. Starting in 2013, Louisiana parishes filed 42 lawsuits against oil and gas companies alleging environmental damage related to historic oil field operations. The parishes alleged that oil and gas companies violated state coastal management laws by failing to properly restore impacted areas. Chevron sought to remove the cases from state court under 28 U.S.C. § 1442(a)(1), known as federal officer removal, which provides federal jurisdiction over “any person acting under [an] officer” of the United States "for or relating to any act under color of such office." The Fifth Circuit rejected the argument and remanded the case, and others like it, to state court. Trial began in March 2025 in Point à la Hache, Louisiana. On April 4, 2025, the jury awarded a total of $745 million to compensate for land loss, contamination and abandoned equipment. On June 16, 2025, the U.S. Supreme Court agreed to review the question of whether a federal contractor can remove to federal court when sued for oil-production activities undertaken to fulfill a federal oil-refinement contract. Reprinted courtesy of Jennifer Kretschmann, Lewis Brisbois and Jennifer E. Michel, Lewis Brisbois Ms. Kretschmann may be contacted at Jennifer.Kretschmann@lewisbrisbois.com Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com Read the full story...

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Course of Construction Exclusions and the CGL Policy

July 20, 2026 — Anna M. Perry, Rachel S. Kindseth & Nina Catanzaro - Saxe Doernberger & Vita, P.C.
I. Course of Construction Exclusions Course of Construction (“COC”) exclusions are found on General Liability and excess liability policies, typically a wrap-up or project specific policy, and generally exclude “all property damage occurring during the course of construction.” Insurers claim COC exclusions are not problematic because they are intended to prevent an overlap in coverage between the general liability policy and first-party property Builder’s Risk policy. However, because General Liability policies and Builder’s Risk policies provide coverage for different risks, COC exclusions can create a gap in coverage for owners and contractors. Therefore, any exclusion on a wrap-up or project specific policy that limits coverage for property damage liability should be scrutinized, and amendments sought when warranted and commercially achievable, for owners, developers and contractors because General Liability policies do not cover the same risk as that of a Builder’s Risk policy. General liability policies provide defense and indemnity to the insured(s) for claims made by a third-party against the insured. Broad COC exclusions serve to preclude coverage for all property damage, not just property damage to the insured project. This includes property damage to property other than the insured project, e.g. an adjacent property. On the other hand, Builder’s Risk policies provide first-party property coverage for direct physical loss to the project during the course of construction. The Builder’s Risk policy will not provide coverage for property other than the project itself (e.g., adjacent property) and it will not provide a defense or indemnity in the event the owner of the damaged property brings a claim against a potentially at-fault party. Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita, P.C., Rachel S. Kindseth, Saxe Doernberger & Vita, P.C. and Nina Catanzaro, Saxe Doernberger & Vita, P.C. Ms. Perry may be contacted at APerry@sdvlaw.com Ms. Kindseth may be contacted at rkindseth@sdvlaw.com Ms. Catanzaro may be contacted at NCatanzaro@sdvlaw.com Read the full story...

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Ninth Circuit Affirms District Court’s Finding of No Coverage for Interior Leak

March 24, 2026 — Tred R. Eyerly - Insurance Law Hawaii
Applying California law, the Ninth Circuit affirmed the district court’s finding that water damage caused by a leaking pipe over time was not covered under the insured’s homeowners’ policy. Mojica v. State Farm General Ins. Co., 2025 U.S. App. LEXIS 32405 (9th Cir. Dec. 11, 2025). A small hole, slightly larger than a pen tip in size, developed in a pressurized hot water pipe. The resulting leak lasted for nearly six days and released enough water to saturate and ruin all the subflooring and flooring in the insureds’ home. 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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Water Reuse Emerges as a Critical Strategy for Data Center Development

June 22, 2026 — Ashleigh Myers, Jillian Marullo & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law Blog
As demand for data centers continues to accelerate, water availability is emerging as a critical factor in project development and long-term operations. Although power supply and transmission access have historically dominated siting discussions, increasing water constraints in many regions are placing greater focus on the substantial volumes of water required to support data center cooling systems. As we covered previously, data centers are frequently located in areas already experiencing water stress and require substantial volumes of water to operate—roughly 228 billion gallons in 2023 in the United States alone—with water use projected to increase by up to 170% by 2030. Alternative cooling options, such as free-air cooling or mechanical chillers, can reduce direct water consumption but introduce their own tradeoffs. Free-air cooling is climate-dependent and often ineffective in hotter regions, while mechanical chillers increase energy demand, potentially shifting water consumption upstream through increased electricity generation. Reprinted courtesy of Ashleigh Myers, Pillsbury, Jillian Marullo, Pillsbury and Jason Drogin Atwood, Pillsbury Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com Read the full story...

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Micromobility in Smart Cities: Keeping the Wheels in Motion

May 26, 2026 — James P. Bobotek - Gravel2Gavel Construction & Real Estate Law Blog
Mobility is the lifeblood of any city. How people are able to travel in, out and within a metropolitan area is vital to its citizens, businesses, supply chains and social services. And as U.S. cities have expanded in size and population density, the strategies for addressing mobility have evolved. Many have taken different approaches to public transit, and each city boasts a dense tapestry of roadways, walking paths and various parking options. But as cities continue to reexamine infrastructure strategies through smart city technology, a new field of transportation has emerged—micromobility. Designed for short-distance travel using lightweight vehicles (bikes, e-bikes, e-scooters, etc.), the industry’s global net worth has grown exponentially in recent years to the tune of hundreds of billions, with one forecast predicting it could reach $340 billion by 2030. Micromobility also finds itself at the forefront of various smart city technological improvements. Geofencing has been implemented in U.S. cities to determine where micromobility vehicles can operate, control speed limits, and park utilizing the vehicles’ GPS location. Internet of Things (IoT) technologies (satellite-based location receivers, cloud communication, internet links, etc.) have improved vehicle lifespans by keeping track of when vehicles require service and prevent vandalism and theft. Data collected from vehicles’ location tracking is routinely used for urban planning and smart city development. Read the full story...
Reprinted courtesy of James P. Bobotek, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com

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