The self-storage construction pipeline has begun to contract, following seven years of expansion, although numerous deliveries are still under way, reports Marcus & Millichap’s second half 2019 national report on self-storage.

Several markets, including Raleigh, N.C., and Denver, have seen their inventories grow in excess of 40 percent so far this cycle, reports Marcus & Millichap. The added supply has placed downward pressure on asking rents, with more operators offering concessions to lease units and maintain occupancy levels. In other metros, such as Minneapolis and Phoenix, building is ramping up substantially in 2019, creating potential headwinds for the future.

Many smaller secondary and tertiary markets are expanding inventories at a faster pace this year. Overall building activity is moderating though, influenced by rising construction costs and tighter lending. In some cases, developers are reducing expenses by converting other types of vacant proper