If you're an investor looking for something a little more spicy than simple residential real estate investing, you can choose from a whole world of commercial real estate stocks. Some commercial investors manage nothing but offices or retail properties, while others focus on niches like mixed-use properties.
Residential real estate stocks are great for buying and holding, but they generally don't offer much innovation or excitement. Choosing commercial real estate stocks can provide exposure to up-and-coming industries that are primed for major growth or are already growing exponentially.
Most commercial real estate stocks are structured as real estate investment trusts (REITs), which usually pay dividends. This makes them attractive to income investors. You can also reinvest dividends to buy more shares of the REIT, further bolstering your returns.
Five best commercial real estate stocks to buy in 2025
Here are a few commercial real estate stocks to keep an eye on this year.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Kilroy Realty (NYSE:KRC) | $4.8 billion | 5.35% | Office REITs |
| Realty Income (NYSE:O) | $52.5 billion | 5.64% | Retail REITs |
| Prologis (NYSE:PLD) | $118.4 billion | 3.13% | Industrial REITs |
| Alexandria Real Estate Equities (NYSE:ARE) | $7.8 billion | 11.66% | Health Care REITs |
| Simon Property Group (NYSE:SPG) | $59.1 billion | 4.67% | Retail REITs |
1. Kilroy Realty
NYSE: KRC
Key Data Points
Office REITs have taken a bit of a beating since the work-from-home trend started. Nevertheless, Kilroy Realty is still finding ways to remain profitable and grow its income.
Kilroy Realty (KRC +0.42%) is in some of the country's hottest markets, with 118 total office buildings in five markets -- Austin, San Diego, Los Angeles, San Francisco, and Seattle -- and housing tenants in more than 16 million square feet of rental space. It's also somewhat diversified, with three residential properties containing a total of 1,001 units.
Kilroy Realty's largest tenants include:
- General Motors' (GM +4.78%) Cruise LLC
- Stripe
- Adobe (ADBE -0.19%)
- Salesforce (CRM +1.22%)
- Okta (OKTA +2.33%)
- DoorDash (DASH -4.21%)
- Netflix (NFLX -4.14%)
That's a solid base of companies to provide stable income, even in these days of lower office occupancy. Kilroy's dividends increased steadily between 2015 and 2023, from $1.36 to $2.16, an increase of more than 58% in just eight years. Kilroy has held its dividend at $2.16 since 2023.
2. Realty Income
NYSE: O
Key Data Points
If you're interested in building a diverse real estate portfolio but aren't sure where to start, a diversified REIT may be the answer. Realty Income (O -0.67%) is a reliable player in this arena.
Its portfolio includes a variety of commercial properties across all 50 states and Puerto Rico, as well as a small presence in several international markets. Its properties are often occupied by major retail chains -- think pharmacies, convenience stores, dollar stores, and warehouse clubs -- that tend to be reliable tenants.
Some of Realty Income's biggest clients include:
- Dollar General (DG +0.28%)
- Walgreens (NASDAQ:WBA)
- Dollar Tree (DLTR +3.81%)
- Wynn Resorts (WYNN -0.50%)
- FedEx (FDX +3.34%)
- BJ's Wholesale Club (BJ -0.83%)
- Home Depot (HD +1.70%)
Grocery, convenience stores, and home improvement stores make up more than a quarter of its tenants. While most REITs pay dividends quarterly, Realty Income pays its dividend monthly (it has branded itself as "The Monthly Dividend Company"). That can be useful if you want to use dividends for income rather than reinvesting them. These dividends have increased every year for 30 consecutive years.
3. Prologis
NYSE: PLD
Key Data Points
Warehouses may not seem like the most exciting place to put your hard-earned money. But the COVID-19 pandemic changed how we shop, driving more people to online stores and e-commerce fulfillment from brands they know and trust.
This trend means companies need more places to stash backup inventory and equipment. As a result, warehouse REITs have been thrust into unforeseen growth over the past few years.
Prologis (PLD +1.77%) is one of the biggest players in the field, with approximately 1.3 billion square feet of rental space in 20 countries. It primarily services business-to-business, retail, and e-commerce online fulfillment companies.
With a 94.8% occupancy rate and 77.2% tenant retention rate as of October 2025, Prologis is solidly positioned. It counts Amazon, Home Depot, FedEx, UPS (UPS +2.75%), and GXO Logistics (GXO +1.64%) among its top 10 tenants.
4. Alexandria Real Estate Equities
NYSE: ARE
Key Data Points
As a REIT focused on the life science, ag tech, and technology industries, Alexandria Real Estate Equities (ARE +2.60%) controls spaces used for work important to humanity's future. But it's not just small spaces here and there; the company believes in creating clusters of research facilities to help foster innovation in cities such as Boston, San Francisco, New York, San Diego, and Seattle.
Alexandria has built a solid base for long-term stability with occupancy rates for operating properties of almost 91% as of September 30, 2025, plus a weighted-average remaining lease term for all tenants of 9.4 years. It leases space to companies such as Eli Lilly (LLY +1.16%), Moderna (MRNA +2.80%), Novartis (NVS +0.14%), Merck (MRK +0.75%), and Uber (UBER -5.51%).
Approximately 91% of its leases are triple net leases, which require the tenant to cover real estate taxes, insurance, utilities, repairs, maintenance, common area expenses, and other operating expenses. The lease terms reduce the company's overall cost of doing business.
5. Simon Property Group
NYSE: SPG
Key Data Points
As one of the world's largest operators of mall properties, Simon Property Group (SPG +1.57%) is constantly looking for new ways to reinvest in and add additional value to its older properties. As of Sept. 30, 2025, the REIT owned or had interests in 232 properties with 183 million square feet spread across North America, Asia, and Europe.
Although the REIT holds substantial debt, it's largely due to a huge building boom in mixed-use properties that include retail, hotel, dining, and event space. The boom allowed Simon Property to execute a record number of leases in 2024 -- 5,500 that totaled more than 21 million square feet -- which should help reduce debt over the longer term.
Adding more components to traditional retail should continue to bring value to investors as consumers are drawn to the enhanced properties.
Pros and cons of investing in commercial real estate stocks
Commercial real estate stocks aren't for everyone, but they can be solid investments. Like anything, there are pros and cons to consider.
Pros
Often specialized in niche sectors. Being specialized can allow the company to focus on specific sectors and really do well with attracting those tenants and the customers who like those tenants.
Inflation hedging. Commercial leases are often more complicated than retail leases, including things like rent escalators that keep rents in line with market values automatically.
Diverse types of tenants. Most commercial properties have multiple tenants on the same campus, allowing for more diversification that protects somewhat against natural economic cycles.
Cons
Sector-specific risks are amplified. Although there is often diversity within the sector in commercial REITs, there is the risk of the entire sector experiencing a bumpy ride, such as what office REITs experienced during the COVID-19 pandemic.
Concentration risks. Because most commercial REITs focus on specific niche areas, they risk overconcentration due to a lack of sector diversity within the properties. They can offset this with other investments, but it also reduces their expertise in their area of specialty.
Tenant risk. When an apartment tenant moves, it's just one of hundreds of units that are almost identical, but when a commercial tenant moves, it can be devastating, especially if it's an anchor store or a company that once leased substantial square footage.
How to invest in commercial real estate stocks
1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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The bottom line
Whether you're looking for more warehousing, retail, or office exposure, there are plenty of opportunities to add stable real estate investments to your portfolio.
As a commercial real estate stock investor, you can do a lot more than simply invest in a place for someone to live. From real estate groups that lease exclusively to biotech to warehouse REITs that move e-commerce closer to home, there are plenty of opportunities to invest in commercial real estate stocks.
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