SOFR
3.65%
What HappenedEco TIP West filed suit in NC state court April 23 (publicly reported April 27) challenging Chatham County's 12-month data-center moratorium, arguing the local government overstepped its authority. Eco TIP says it has spent more than $11M on a planned 750 MW Moncure data center (within the 339-acre Triangle Innovation Point West site) and that NC's October 2024 anti-down-zoning law preempts the moratorium ([Raleigh News & Observer](https://www.newsobserver.com/news/business/article315547697.html), [Law360](https://www.law360.com/real-estate-authority/residential/articles/2470022/developer-fights-nc-county-s-data-center-moratorium)). Chatham's pause - approved February 11, 2026 - runs until February 11, 2027 or until new zoning regulations are adopted ([Chatham County](https://www.chathamcountync.gov/Home/Components/News/News/17295/5394?arch=1)). Eco TIP cites a Chatham planning department October 29 zoning interpretation that it argues confers vested rights.
Why It MattersThis is the first legal test of NC's wave of data-center moratoriums and directly invokes the new state limit on down-zoning. A favorable ruling for Eco TIP would weaken every other moratorium currently in place (Apex, Wendell, Orange, Rowan, Swain, Gates, plus several towns) and re-open siting optionality across the Triangle. A loss would entrench moratoria across NC and accelerate the migration of large DC users into Charlotte, the Triad and the Upstate - which are already absorbing data-center demand into industrial product (per yesterday's EastGroup disclosure).
Suggested ActionTrack the Chatham case docket weekly through summer. In parallel, identify TCA / Mortenson sites in markets WITHOUT moratoriums (Charlotte, Cabarrus, Mecklenburg, Iredell, Spartanburg, Greenville, Charleston, Henrico) where existing ML / industrial zoning would permit a data-center or DC-adjacent use without rezoning - these become the relative-scarcity siting plays if NC moratoriums hold up in court.
What HappenedTwo new Savannah industrial leases publicly disclosed for early April: (1) Commonwealth Wholesale Corporation (CWC) signed 56,160 SF at Building 4 of the Central Port Logistics Center (developed by Capital Development Partners and Stockbridge within Rockingham Farms; 32-foot clear, ESFR), leaving 112,320 SF of Class A bulk in the building; (2) Lee & Associates Atlanta closed a 320,320 SF lease at 3300 Coastal Trade Center Parkway in Rincon (newly delivered February 2025) ([PIER Commercial](https://www.piercommercial.com/savannah-industrial-leasing-port-logistics-center/)). Both transactions follow Lee & Associates' Q1 2026 Savannah report showing 3.0M SF of positive net absorption, vacancy down to 12.8%, rents pushed to $8.68 PSF.
Why It MattersThe Savannah vacancy story is bifurcating: aggregate vacancy is still elevated at 12.8% from the 2023-2025 spec wave, but Class A bulk near the Port is being torched through. Two leases of 376K SF combined in a single April week, in an environment of low new starts, signals the supply pipeline is finally being absorbed. Rents at $8.68 PSF are now competitive with Greenville-Spartanburg ($6.19) and below Charlotte. For the Carolinas/GA industrial book this is a tailwind for any port-adjacent stock, including TCA's Mortenson JV product within near-port reach.
Suggested ActionRefresh the Savannah / Pooler / Rincon / Port Wentworth tracking list against today's vacancy gap. Class A bulk near the port is heading from "supply problem" to "selective opportunity" by Q3 2026 - check broker pipelines (Lee, Colliers, JLL Savannah) for any strategic disposition / recapitalization candidates that need timely positioning.
What HappenedQ1 2026 Richmond industrial reports show a clear softening despite still-tight headline vacancy. CBRE: vacancy +120 bps QoQ to 5.6% (+220 bps YoY); availability 6.2%; net absorption -207K SF (vs +629K SF Q1 2025); space under construction nearly quadrupled YoY from 3.0M SF to 11.5M SF; quarterly deliveries 1.4M SF, up from 104K in Q4 ([CBRE Richmond](https://www.cbre.com/insights/figures/richmond-industrial-figures-q1-2026)). Cushman & Wakefield / Thalhimer: vacancy 4.6%, +70 bps QoQ / +130 bps YoY ([Thalhimer / C&W](https://thalhimer.com/wp-content/uploads/2026/04/Richmond_Americas_Alliance_MarketBeat_Industrial_Q1_2026.pdf)). Newmark: 5.8% vacancy with 9.4M SF UC across 16 properties; sublease at 790K SF (decade high vs 350K avg) ([Newmark Richmond Q1](https://nmrk.imgix.net/uploads/fields/pdf-market-reports/1Q26-Richmond-Industrial-Market-Report.pdf)). Q1 spec deliveries Whitepine Logistics Center (Chesterfield, 3 buildings) and I-895 Logistics Center (Ashley Capital, 582K SF, RIC Airport) hit the market vacant, plus 700K SF of data-center completions.
Why It MattersRichmond is the secondary market most likely to give up rent first in 2026. Three independent sources are converging on the same picture: a spec wave is hitting at the same time net absorption flips negative and sublease space spikes to a 10-year high. The 9.4-11.5M SF still UC on top of this means landlord concessions and broker givebacks are likely to widen this summer. EQT Real Estate's March 5 acquisition of 25 Mapletree assets (including Richmond) has pricing context - that basis becomes the comp for any Richmond opportunistic plays through year-end.
Suggested ActionUnderwrite Richmond exposures with a 75-100 bps vacancy build vs current and 6-9 months extra lease-up on any spec exposure. If TCA holds Richmond paper, consider repricing recap conversations now while the sublease wave hasn't fully cracked rents. Conversely, this is the market where a basis-driven entry in 2H 2026 looks cleanest - watch for stressed spec deliveries from non-recourse lenders (Whitepine, I-895 Logistics Center vintage).