When new investors think about commercial real estate, they often picture apartment buildings, retail centers, or office space. But there’s another asset class that’s often overlooked—and it might surprise you.

I’m talking about self-storage.

It doesn’t always come to mind as a traditional CRE investment, but self-storage units have carved out a solid place in the market. In fact, over the last 20 years, this sector has grown rapidly. You’ve probably noticed them popping up in cities and towns all over the country. But the big question is—are they a good investment?

Let’s take a look at the pros and cons.

A Few Fast Facts About Self-Storage

Here’s something that might catch your eye: according to Bloomberg’s Riskless Return Rankings, self-storage REITs outperformed all other real estate investment trusts in terms of risk-adjusted returns during the ten-year stretch ending in 2012.

Now, buying stock in a REIT isn’t the same as owning a self-storage facility outright—but that dat...