An article published yesterday on MarketWatch, the digital network of The Wall Street Journal, identified self-storage as one of seven unconventional investments that are currently beating stocks and may continue to do so moving forward.

According to the article, a well-managed self-storage business produces annual returns of 5 percent to 10 percent and enjoys certain tax advantages. Risks were also mentioned, such as the need for active management, the potential of high vacancy rates, and losses due to property damage and theft. In addition, author Jeff Reeves said self-storage is incredibly illiquid and may be difficult to exit when the owner is ready to retire.

The other six investments identified in the article are gold, cash, land leasing, 10-year Treasury notes, Build America Bonds and parking lots.

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