Top 5 Commercial Property Types for Passive Income
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 15
- 2 min read
Commercial real estate continues to be a top choice for investors seeking passive income in 2025. With long-term leases, stable tenants, and strong appreciation potential, certain property types stand out for their ability to generate consistent returns with minimal day-to-day involvement.
Here are the top 5 commercial property types that offer the best passive income opportunities this year.
1. Multifamily Properties (Apartments, Duplexes, Fourplexes)
Multifamily buildings are a classic passive income generator. With multiple tenants, these properties offer diversified income streams, reducing the risk of total vacancy. Professionally managed apartment complexes can yield steady monthly cash flow and benefit from high occupancy rates.
2. Industrial Properties (Warehouses, Distribution Centers)
Driven by the e-commerce boom, industrial spaces are in high demand. These properties often feature long-term leases and triple net agreements, where tenants cover taxes, insurance, and maintenance. This makes them ideal for investors seeking low-maintenance, high-yield assets.
3. Medical Office Buildings (MOBs)
Healthcare is recession-resistant, and medical tenants tend to sign 5–10 year leases with high renewal rates. These properties offer predictable income and are often located in growing suburban corridors.
Think Starbucks, AutoZone, or Dollar General. These properties are leased to one tenant under long-term contracts (10–20 years), often backed by corporate guarantees. Investors enjoy “mailbox money” with minimal management.
5. Neighborhood Strip Centers
Small retail centers with service-based tenants like salons, dry cleaners, and restaurants offer diversified income and value-add potential. Located near schools or grocery stores, they benefit from steady foot traffic and community demand.
Protect Your Passive Income with Wexford Insurance
No matter which property type you choose, protecting your investment is essential. Wexford Insurance offers tailored commercial property coverage for:
Multifamily and mixed-use buildings
Industrial and warehouse spaces
Retail centers and office buildings
Hotels and motels
Lessors risk insurance for leased properties
Our policies include property damage, liability, business interruption, and optional add-ons like flood and cyber coverage.
Final Thoughts
Passive income from commercial real estate is achievable with the right strategy and support. Choose the right property type—and partner with Wexford Insurance to protect your cash flow. Contact Wexford Insurance today to get started.
FAQs
1. What makes a property ideal for passive income?
Long-term leases, stable tenants, and low maintenance requirements are key factors.
2. Can I insure multiple property types under one policy?
Yes, Wexford Insurance offers bundled coverage for diverse portfolios.
3. Are triple net leases better for passive investors?
Yes—tenants cover most expenses, reducing owner involvement and boosting returns.
