Marcus & Millichap Releases New Construction Outlook Report

Posted by MSM on Oct 22, 2026, 5:32:03 PM

A new report from Marcus & Millichap examines how slowing construction activity could shape commercial real estate investment opportunities in the coming years. Higher financing costs, elevated material prices, and labor constraints are making new developments increasingly difficult to justify, potentially extending the period of declining vacancies and rising rents as existing supply is absorbed.

 

According to the report, self-storage construction investment is down 32% from its 2023 peak. The report highlights the importance of evaluating future supply alongside demand when identifying investment opportunities, particularly as development cycles vary across property types and markets.

 

Get the full Marcus & Millichap Report here.