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Real Estate & Construction News Roundup (11/12/25) – Banks Weather CRE Storm, Industrial Outdoor Storage Markets Soar, and Office Vacancy Decline

December 08, 2025 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, turnover rate for US homes drops to a 30-year low, global data center real estate funding struggles to keep pace, industrial real estate space surges, and more!

• U.S. regional banks’ commercial real estate loan books are proving broadly resilient despite worries sparked by a handful of soured loans, but the office sector continues to be a pain point. (Niket Nishant and Manya Saini, Reuters)
• The rapid buildout of AI and quantum infrastructure is sparking a boom in an often overlooked commercial real estate sector. (Diana Olick, CNBC)
• U.S. office vacancies showed their first year-over-year decline since the pandemic. (Joe Burns, Facilities Dive)

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

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Bridging the Information Gap of Alternative Delivery Methods on Public Projects

January 21, 2026 — Michael S. Blackwell - The Dispute Resolver
In almost all corners of the country, municipalities, counties, and states alike have historically employed a design-bid-build approach to public projects. While the delivery method lends itself easily to selecting the lowest bidder for both the design and construction phases of projects, it also excludes other, alternative methods that may be better suited for projects that require contractor involvement during the design phase, a phased approach to completion, or partnership between the public entity and private investment. But implementation of new delivery methods has posed a problem in some areas due to a lack of familiarity. This blog post proposes a simple solution. As early as the mid-late 1990s, changes in federal procurement laws allowed for the adoption of design-build, one option for alternative delivery, for public projects. Since that time, states, municipalities, and other public entities have followed suit. Today, you can find the use of design-build, progressive design-build, A + B, CM/GC, CMAR, and P3 just to name a few of the delivery methods that have been adopted in various states. These alternatives help provide options to public entities to find the right fit for their project. Read the full story...
Reprinted courtesy of Michael S. Blackwell, Riess LeMieux, LLC
Mr. Blackwell may be contacted at mblackwell@rllaw.com

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The AI Knows Too Much: When Employees Feed Trade Secrets into Generative AI Tools

April 14, 2026 — Kazim A. Naqvi & John V. Mysliwiec - Sheppard
Every time an employee pastes proprietary source code, a customer list, or a confidential business strategy into ChatGPT, Claude, or Google Gemini, they may be quietly dismantling the legal protections that make those secrets worth protecting. Courts and regulators are only beginning to grapple with this problem, and right now, the burden of preventing it falls squarely on employers. The Legal Stakes Under the federal Defend Trade Secrets Act (“DTSA”) and the Uniform Trade Secrets Act (“UTSA”) as adopted across most states, a trade secret plaintiff must show that the information at issue was subject to reasonable measures to maintain its secrecy. Courts have historically credited measures like confidentiality agreements, physical access controls, and employee training—but those safeguards were designed for a world of thumb drives and disgruntled employees. They were not built for a world where a well-meaning engineer can, in seconds, transmit an entire corpus of proprietary data to a third-party AI platform operating under terms of service that may permit the provider to use inputs for model training. Reprinted courtesy of Kazim A. Naqvi, Sheppard and John V. Mysliwiec, Sheppard Mr. Naqvi may be contacted at knaqvi@sheppard.com Mr. Mysliwiec may be contacted at jmysliwiec@sheppard.com Read the full story...

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Reminder: FOLLOW Your Well Drafted Contract Provisions

February 17, 2026 — Christopher G. Hill - Construction Law Musings
I have early and very often stated that your contract is the basis for everything relating to your construction project. Everything from “no damages for delay” clauses to attorney fees to indemnity are found in those documents. A well drafted construction contract sets the expectations for the project clearly and, aside from just making it easier on everyone for a successful project, will ease things should there be any dispute later. However, all of the great drafting and pre-construction negotiation in the world won’t do you a bit of good if you don’t follow those provisions. I can’t count the number of times that a contractor or subcontractor has read and even understood the construction documents but then put the contract in the drawer and didn’t look at it again. Your experienced construction attorney, while helpful at the drafting and negotiation stages and beyond, cannot help do the work. Your lawyer can help you negotiate and highlight the notice provisions of the contract but cannot provide that notice to the Owner or General Contractor when you have a claim. In short, the best contract in the world is only as good as those that are following it. 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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Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions

May 12, 2026 — David Adelstein - Florida Construction Legal Updates
Contract drafting and interpretation matters. A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case here where the appellate court reversed based on the prefatory language. But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:

Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects

May 05, 2026 — Stephen Hauptman - Ball Janik LLP
Florida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher. The Cost Volatility Trap Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement. Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations. Regulatory Pressure and Deliberate Timing Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure. This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation. Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences. The Emerging Risk Transfer Challenge As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge. For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements. Taking a Data-Driven Approach Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning. The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework. Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.

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Kahana Feld Secures Discontinuance with Prejudice in Fraudulent Case

January 06, 2026 — Kahana Feld
Kahana Feld secured a victory for its client after uncovering evidence that the plaintiff’s alleged trip-and-fall claim was fraudulent. The plaintiff sought $8 million in damages and claimed serious spinal and knee injuries stemming from an incident outside a Bronx retail store. Through strategic investigation and a crucial non-party deposition, our team established that the plaintiff’s identified eyewitness was out of the country at the time of the alleged accident—contradicting the plaintiff’s testimony and confirming the falsity of the claim. Read the full story...
Reprinted courtesy of Kahana Feld

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Civil Megaprojects: The Evolving Use of Dispute Prevention and Collaborative Delivery Methods in Public Contracting

January 13, 2026 — Lisa D. Love - The Dispute Resolver
Civil megaprojects are large, complex ventures in civil engineering and construction that typically cost over $1 billion to construct. These projects generally have significant and long-lasting impacts on the economy, environment and society, and involve multiple public and private stakeholders. Typical civil megaprojects include infrastructure projects, such as highways, bridges, tunnels, airports, dams, power plants and public buildings, which require extensive planning, design, coordination and construction over an extended period of time. In the United States, there is over $500 billion worth of civil megaprojects in the pipeline, with an average of four megaprojects per month in 2024 and a total monthly value of $9.2 billion.[i] Here are some recent examples of civil megaprojects: The Hudson Tunnel Project (a portion of the Gateway Program), under construction in the states of New York and New Jersey, involves the construction of two new tunnels and the renovation of aging rail tunnels used by Amtrak and New Jersey Transit that were damaged by Superstorm Sandy along the Northeast Corridor. This has been deemed one of the most important infrastructure projects in the country. It is projected to be completed in 2027 at a cost of over $16 billion.[ii] Read the full story...
Reprinted courtesy of Lisa D. Love, JAMS

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