Is it good to invest in commercial real estate?

Commercial real estate can be a good addition to a well-rounded investment portfolio. There are many different sectors that fall under "commercial real estate," and you'll need to balance the pros and cons of the company and industry before deciding if commercial real estate is right for you.

Which commercial real estate stocks pay dividends?

Commercial real estate investment trusts (REITs) almost always pay dividends due to their tax structure. The only time they won't is if they haven't made any profit for that quarter (in which case, it's a good idea to figure out why).

Are commercial real estate stocks overpriced?

Given the wide array of commercial real estate stocks, some are likely overpriced, while others are underpriced or right on target. Diving into the fundamentals of each company and stock will help you decide which is which.

What is the Big 4 in commercial real estate?

The Big 4 in commercial real estate usually refers to CBRE Group (NYSE: CBRE), Cushman & Wakefield (NYSE: CWK), Lincoln Property Co., and Colliers International (NASDAQ:CIGI).

Can commercial real estate stocks protect against inflation?

Commercial REITs can be sensitive to inflation like any other company, though they do attempt to build inflation into leases with rent escalators. In this way, they're partially protected against inflation, but the loss of tenants due to inflation, or the inability to expand or update properties when costs are high, remains a risk.

How much money do I need to invest in commercial real estate stocks?

Most brokers today allow fractional investing, meaning you don't have to buy a whole share to participate in the stock market. You can invest with as little or as much money as you'd like, with $5 trades available on most platforms.

What types of companies are included in CRE stocks?

Commercial real estate stocks (CRE stocks) typically refer to commercial REITs, but can also include publicly traded commercial builders and real estate companies that focus on commercial properties. These last two are few and far between compared with the various kinds of commercial REITs.

5 Best Commercial Real Estate Stocks for 2026

Commercial real estate stocks offer opportunities to get involved with some of the most interesting businesses in the world.

By Kristi Waterworth – Updated Sep 29, 2026 at 7:15 PM EST | Fact-checked by Frank Bass

+Fool.comon

Key Points

Kilroy Realty, among commercial real estate stocks, upped its dividend by 58% (2015-2023) amidst an office REIT downturn.
"The Monthly Dividend Company," Realty Income, offers stable retail REIT dividends, increased yearly for 30 years.
Prologis leads warehouse REITs with a 96% occupancy rate, fueled by booming e-commerce demand.

If you're an investor looking for something a little more exciting than simple residential real estate investing, you can choose from a whole world of commercial real estate stocks. Some commercial investors manage only offices or retail properties, while others focus on niches such as mixed-use properties.

Residential real estate stocks are great for buy-and-hold investing, but they generally don't offer much innovation or excitement. Choosing commercial real estate stocks can provide exposure to up-and-coming industries primed for major growth or 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.

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Modern office buildings situated on both sides of a lovely waterway winding itself through Hong Kong. — Source: Getty Images.

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5 top commercial real estate stocks for 2026

Here are a few commercial real estate stocks to keep an eye on this year.

Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Kilroy Realty (NYSE:KRC)	$4.0 billion	6.21%	Office REITs
Realty Income (NYSE:O)	$51.8 billion	5.93%	Retail REITs
Prologis (NYSE:PLD)	$125.9 billion	3.19%	Industrial REITs
Alexandria Real Estate Equities (NYSE:ARE)	$7.7 billion	6.53%	Health Care REITs
Simon Property Group (NYSE:SPG)	$65.2 billion	4.42%	Retail REITs

Data as of Oct 13, 2026. Showing 5 of 5 total entries.

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1. Kilroy Realty

NYSE: KRC

Kilroy Realty

Premium Feature

Moneyball Superscore

58/100

Today's Change

(1.61%) $0.55

Current Price

$34.80

Key Data Points

Market Cap

$4.0B

Day's Range

$33.95 - $34.86

52wk Range

$27.36 - $43.58

Volume

1.2M

Avg Vol

1.3M

Gross Margin

31.75%

Dividend Yield

6.21%

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Office REITs have taken a bit of a beating since the work-from-home trend started. Nevertheless, Kilroy Realty continues to find ways to remain profitable and grow its income.

Kilroy Realty (KRC +1.61%) is in some of the country's hottest markets, with 123 total office and life science buildings in five markets -- Austin, San Diego, Los Angeles, San Francisco, and Seattle -- and housing tenants in more than 17.1 million square feet of rental space. Kilroy Realty's largest tenants include:

General Motors' (GM -0.43%) Cruise LLC
Stripe
Adobe (ADBE -1.70%)
Salesforce (CRM +2.09%)
Okta (OKTA -2.18%)
DoorDash (DASH -1.15%)
Netflix (NFLX +0.44%)

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, a more than 58% increase in just eight years. Kilroy has held its dividend at $2.16 since 2023.

2. Realty Income

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NYSE: O

Realty Income

Premium Feature

Moneyball Superscore

82/100

Today's Change

(0.96%) $0.52

Current Price

$54.70

Key Data Points

Market Cap

$52B

Day's Range

$53.90 - $54.74

52wk Range

$53.15 - $67.94

Volume

7.6M

Avg Vol

6.6M

Gross Margin

50.82%

Dividend Yield

5.93%

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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 +0.96%) 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 -0.54%)
Walgreens
Wynn Resorts (WYNN -0.25%)
FedEx (FDX +0.18%)
BJ's Wholesale Club (BJ +1.24%)
Tractor Supply (TSCO -0.74%)
Home Depot (HD -0.04%)
Walmart (WMT +1.55%)

Grocery, convenience, 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

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NYSE: PLD

Prologis

Premium Feature

Moneyball Superscore

83/100

Today's Change

(2.30%) $2.98

Current Price

$132.47

Key Data Points

Market Cap

$126B

Day's Range

$129.26 - $132.50

52wk Range

$111.81 - $153.35

Volume

3.5M

Avg Vol

4.1M

Gross Margin

44.51%

Dividend Yield

3.19%

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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 experienced unforeseen growth over the past few years.

Prologis (PLD +2.30%) 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 96.0% occupancy rate and a weighted average lease term for the trailing 12 months ending June 30, 2026, of 68 months, Prologis is solidly positioned. Among its top 10 tenants are :

Amazon
Home Depot
FedEx
UPS (UPS +0.81%)
Walmart
GXO Logistics (GXO +0.09%)

4. Alexandria Real Estate Equities

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NYSE: ARE

Alexandria Real Estate Equities

Premium Feature

Moneyball Superscore

53/100

Today's Change

(-3.05%) $-1.39

Current Price

$44.12

Key Data Points

Market Cap

$7.7B

Day's Range

$43.50 - $44.92

52wk Range

$39.41 - $78.54

Volume

2.3M

Avg Vol

1.9M

Gross Margin

23.41%

Dividend Yield

6.53%

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As a REIT focused on the life sciences, ag tech, and technology industries, Alexandria Real Estate Equities (ARE -3.05%) 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.

Its leases are designed for long-term stability with occupancy rates for operating properties at 86.9% as of June 30, 2026, plus a weighted-average remaining lease term for all tenants of 7.7 years. It leases space to companies such as:

Bristol Myers Squibb (BMY -2.60%)
Eli Lilly (LLY +0.28%)
Moderna (MRNA -5.00%)
Novartis (NVS +0.06%)
Merck (MRK -0.10%)
Uber (UBER -0.01%)
Alphabet (GOOG +0.32%)(GOOGL +0.30%)

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

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NYSE: SPG

Simon Property Group

Premium Feature

Moneyball Superscore

77/100

Today's Change

(1.00%) $1.99

Current Price

$201.41

Key Data Points

Market Cap

$65B

Day's Range

$198.98 - $201.54

52wk Range

$172.19 - $238.50

Volume

1.2M

Avg Vol

1.3M

Gross Margin

57.24%

Dividend Yield

4.42%

Loading company_card...

As one of the world's largest operators of mall properties, Simon Property Group (SPG +1.00%) is constantly looking for new ways to reinvest in and add additional value to its older properties. And it's paying off substantially. Base minimum rent per square foot increased year-over-year by 6.3% in the quarter ending June 30, 2026, despite occupancy remaining stable at 96%

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. This should contribute to increased income over time, but so far the debt itself has barely moved, and the property values have grown only slightly.

Adding more components to traditional retail should continue to deliver value to investors, as consumers are drawn to the enhanced offerings.

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How to buy commercial real estate stocks

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
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.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks 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. Specialization can allow the company to focus on specific sectors, attracting tenants and customers who prefer them.
Inflation hedging. Commercial leases are often more complicated than retail leases, including rent escalators that automatically keep rents in line with market values.
Diverse types of tenants. Most commercial properties have multiple tenants on the same campus, allowing for greater diversification that can somewhat protect them against natural economic cycles.

Cons

Sector-specific risks are amplified. Although there is often diversity within the commercial REIT sector, the sector as a whole may experience a bumpy ride, as office REITs did during the COVID-19 pandemic.
Concentration risks. Because most commercial REITs focus on specific niches, they risk overconcentration due to limited sector diversity. 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.

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What to consider before investing in commercial real estate stocks

There's a wide range of commercial real estate stocks, from warehouse REITs to mixed-used REITs, so it's important to understand the type of business you're getting involved with when considering investing. Like with all REITs, a high occupancy rate, long leases, and solid tenants that can withstand difficult times are very good to have. You may also find that niche commercial REITs can help balance out otherwise cyclical stocks if their niche is always in demand or if the cycle for that niche runs in a different pattern from the general real estate market.

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Trends in the commercial real estate market

The commercial real estate market is always experiencing localized trends, but larger trends that are having huge effects still include:

Data center expansion. Increased AI use and growing demand for AI infrastructure will drive a greater need for data centers, warehouses for infrastructure-development materials, and other industrial buildings to support these activities. The AI boom will end at some point -- but until then, these properties will maintain steady demand.

Increased cost of goods. On the downside, the increased cost of goods due to global instability, rising gas prices, and on-again-off-again tariffs are hurting retailers in a big way. The REITs they rent from could feel the pinch if retail slows and closes more brick-and-mortar stores, opting to offer more options via e-commerce (which, in turn, could be a possible boon for warehouse REITs).

Methodology: How these stocks were chosen

The commercial real estate stocks presented in this article were chosen for their long-term potential, including healthy balance sheets, strong management, and sectors that are stable or likely to expand over time.

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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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Commercial real estate stocks: FAQ

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

Kristi Waterworth has positions in Alexandria Real Estate Equities. The Motley Fool has positions in and recommends Adobe, Alexandria Real Estate Equities, Alphabet, Bristol Myers Squibb, DoorDash, Eli Lilly, Home Depot, Merck, Moderna, Netflix, Okta, Prologis, Realty Income, Salesforce, Simon Property Group, Tractor Supply, Uber Technologies, United Parcel Service, and Walmart. The Motley Fool recommends FedEx, GXO Logistics, and General Motors and recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

5 Best Commercial Real Estate Stocks for 2026

Commercial real estate stocks offer opportunities to get involved with some of the most interesting businesses in the world.

Key Points

5 top commercial real estate stocks for 2026

1. Kilroy Realty

Key Data Points

2. Realty Income

Key Data Points

3. Prologis

Key Data Points

4. Alexandria Real Estate Equities

Key Data Points

5. Simon Property Group

Key Data Points

How to buy commercial real estate stocks

Benefits and risks of investing in commercial real estate stocks

Pros

Cons

What to consider before investing in commercial real estate stocks

Trends in the commercial real estate market

Methodology: How these stocks were chosen

The bottom line

Related investing topics

Best Stocks to Buy Now: Our Buy-and-Hold Picks for October 2026

5 Best Healthcare REIT Stocks for 2026 and How to Invest

2 Best Farmland REITs for 2026 and How to Invest

The Basics of Real Estate Syndication

Commercial real estate stocks: FAQ

Is it good to invest in commercial real estate?

Is it good to invest in commercial real estate?

Which commercial real estate stocks pay dividends?

Which commercial real estate stocks pay dividends?

Are commercial real estate stocks overpriced?

Are commercial real estate stocks overpriced?

What is the Big 4 in commercial real estate?

What is the Big 4 in commercial real estate?

Can commercial real estate stocks protect against inflation?

Can commercial real estate stocks protect against inflation?

How much money do I need to invest in commercial real estate stocks?

How much money do I need to invest in commercial real estate stocks?

What types of companies are included in CRE stocks?

What types of companies are included in CRE stocks?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

How to buy commercial real estate stocks

Benefits and risks of investing in commercial real estate stocks

Pros

Cons

What to consider before investing in commercial real estate stocks

Trends in the commercial real estate market

Methodology: How these stocks were chosen

The bottom line

Best Stocks to Buy Now: Our Buy-and-Hold Picks for October 2026

5 Best Healthcare REIT Stocks for 2026 and How to Invest

2 Best Farmland REITs for 2026 and How to Invest

The Basics of Real Estate Syndication

Commercial real estate stocks: FAQ

Is it good to invest in commercial real estate?

Is it good to invest in commercial real estate?

Which commercial real estate stocks pay dividends?

Which commercial real estate stocks pay dividends?

Are commercial real estate stocks overpriced?

Are commercial real estate stocks overpriced?

What is the Big 4 in commercial real estate?

What is the Big 4 in commercial real estate?

Can commercial real estate stocks protect against inflation?

Can commercial real estate stocks protect against inflation?

How much money do I need to invest in commercial real estate stocks?

How much money do I need to invest in commercial real estate stocks?

What types of companies are included in CRE stocks?

What types of companies are included in CRE stocks?

2. Realty Income