Marcus & Millichap publishes 2026 NYC Self-Storage Investment Outlook Report

Manhattan, NY Marcus & Millichap has published its 2026 New York City Self-Storage Investment Outlook Report.

“New York remains a supply-constrained market, and that continues to support pricing. At the same time, slower job growth and population losses are showing up in demand, so performance is becoming more asset-specific,” said John Horowitz, executive managing director and chief revenue officer, Northeast division.

Key findings include:

• Development remains constrained by high construction costs and limited land availability, keeping new supply below the metro’s historical average.

• Deliveries will be concentrated in Manhattan, Brooklyn, and Queens, while the overall pipeline remains subdued relative to prior cycles.

• Metrowide vacancy is expected to rise modestly to approximately 8.4%, reflecting softer space demand.

• Job growth is slowing to below 1%, with weakness in key sectors likely to carry into 2026 and temper demand.

• Net out-migration and a declining 20- to 34-year-old population are reducing a primary source of self-storage demand, while rent performance varies by borough based on new supply.

“Even with vacancy moving higher, this remains a tightly supplied market. New development is limited, and that is helping moderate changes in vacancy and rent across the metro,” Horowitz said.