Use Pivot Point Center

Main toolbar > Use Pivot Point Center (on Use Center flyout)

The Use Pivot Point Center button, available from the Use Center flyout, lets you enable rotation or scaling of one or more objects around their respective pivot points.

The axis tripods show the centers that are currently being used.

Note that transformation center mode is set on a transform-by-transform basis, so select the transform before you select the center mode. If you do not want the constraints to change, turn on Customize menu > Preferences > General tab > Reference Coordinate System group > Constant.

Applying a rotation with the Pivot Point rotates each object around its own local axis.