{"id":1004810959,"date":"2026-09-04T05:36:30","date_gmt":"2026-09-04T13:36:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004810959"},"modified":"2026-09-04T05:36:33","modified_gmt":"2026-09-04T13:36:33","slug":"industrial-report-data-center-backlash-tests-development-boom","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/industrial-report-data-center-backlash-tests-development-boom\/","title":{"rendered":"Industrial Report: Data Center Backlash Tests Development Boom"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"900\" data-attachment-id=\"1004810962\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/industrial-report-data-center-backlash-tests-development-boom\/adobestock_2092111220\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg\" data-orig-size=\"1200,900\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"AdobeStock_2092111220\" data-image-description=\"&lt;p&gt;Image by Iryna\/AdobeStock&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Image by Iryna\/AdobeStock&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg?w=1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg\" alt=\"Image by Iryna\/AdobeStock\" class=\"wp-image-1004810962\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg?resize=768,576 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/09\/AdobeStock_2092111220.jpg?resize=1024,768 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/a><figcaption class=\"wp-element-caption\">Data center development is drawing increased scrutiny from communities and policymakers over power use, infrastructure demands and other local impacts. <em>Image by Iryna\/AdobeStock<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Data center development is facing growing scrutiny from communities and policymakers as concerns around power and water use, utility costs and local impacts become more prominent. The August 2026 Yardi Matrix Industrial National Report highlights a wave of proposed and enacted restrictions that could influence where and how future projects move forward.<\/p>\n\n\n\n<p>The pushback is not concentrated in one region or political environment. New York has approved a one-year moratorium on <a href=\"https:\/\/www.commercialsearch.com\/news\/more-data-centers-please\/\">hyperscale data center development<\/a>, while Pennsylvania and Texas have also moved toward restrictions. Texas stands out because of the scale of its existing pipeline and its historically business-friendly stance. The report suggests that greater transparency around resource consumption and community impacts may become increasingly important as developers seek support for new projects.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rent-gains-persist-as-vacancy-stabilizes\">Rent gains persist as vacancy stabilizes<\/h2>\n\n\n\n<p>Broader <a href=\"https:\/\/www.commercialsearch.com\/news\/whats-next-for-industrial-real-estate\/\">industrial fundamentals<\/a> remain relatively resilient. National in-place rents averaged $9.25 per square foot in July, rising 5.4 percent year over year. <a href=\"https:\/\/www.commercialsearch.com\/news\/atlanta-industrial-market-update\/\">Atlanta led annual growth<\/a> at 7.9 percent, followed by Miami at 7.4 percent and Dallas\u2013Fort Worth and New Jersey at 7.3 percent each. Tampa also stood out, with rents increasing 7 percent over the past year. Its development pipeline has contracted to just 2.9 million square feet, or 1 percent of existing stock.<\/p>\n\n\n\n<p>National vacancy held at 9.3 percent, up only 20 basis points from a year earlier. The vacancy surge was caused by the recent supply wave as largely over, although conditions continue to vary by market. At the same time, pricing on newly executed leases is converging with existing rents. Leases signed during the past 12 months averaged $10.06 per square foot, just 81 cents above the national in-place figure, compared with spreads above $2 during much of the early 2020s.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/has-data-center-development-hit-a-wall\/\">Has Data Center Development Hit a Wall?<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-development-starts-regain-momentum\">Development starts regain momentum<\/h2>\n\n\n\n<p>Industrial construction totaled 427.6 million square feet in July, equal to 2 percent of national stock. Starts have been recovering since their 2024 trough, rising to 333.1 million square feet in 2025, while another 180.6 million square feet broke ground through July 2026. Phoenix led this year\u2019s starts with 18.1 million square feet, followed by Dallas at 15.9 million and Houston at 9.9 million. Winston-Salem\u2013Greensboro ranked fourth with 9.2 million square feet, driven largely by JetZero\u2019s 8 million-square-foot manufacturing plant in Greensboro, N.C.<\/p>\n\n\n\n<p>Investment activity is also showing firmer pricing. Industrial sales reached $50.1 billion through July at an average of $140 per square foot. Dallas led transaction volume at $3.9 billion, while pricing ranged from $322 per square foot in the Bay Area to $85 in the Twin Cities among the markets tracked. New Jersey averaged $184 per square foot, with its figure pulled lower by Anheuser-Busch\u2019s $360 million sale of its former Newark brewery to Goodman Group at $112 per square foot.<\/p>\n\n\n\n<p><em><a href=\"https:\/\/www.yardimatrix.com\/industrial-national\/matrix-industrial-national-report-august-2026\/\">Read the full Yardi Matrix report.<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Public resistance to data center construction is adding a new layer of uncertainty for industrial development, even as rents rise and construction starts regain momentum.<\/p>\n","protected":false},"author":3014,"featured_media":1004810962,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,23891,52556,41267],"tags":[32785],"class_list":["post-1004810959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-national","category-yardimatrix-industrial-reports","category-yardimatrix-reports","tag-yardi-matrix"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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