Best Commercial REITs: Top Picks for Property Investors

Commercial REITs (Real Estate Investment Trusts) are companies that own, operate, or finance income-producing commercial real estate — such as office buildings, retail centres, industrial parks, and mixed-use properties. They allow investors to access commercial property returns without directly owning physical buildings, offering dividends, diversification, and liquidity.

Below is a guide to some of the best commercial REITs widely regarded for performance, management quality, and income potential. These picks suit investors looking for exposure to key commercial property segments.

African Land helps investors understand and evaluate REIT options alongside direct property ownership to build resilient, income-generating portfolios.

What Makes a Commercial REIT a Strong Investment

Before reviewing specific names, consider these qualities that often define “top” commercial REITs:

Stable Dividend Income
Reliable payouts backed by long-term leases and strong tenant demand support investor income goals.

Quality Property Portfolio
High-grade commercial buildings in prime locations attract reliable tenants and maintain occupancy.

Diversified Asset Base
Exposure across property segments (office, retail, logistics, etc.) reduces sector-specific risk.

Experienced Management
Seasoned teams with strong acquisition, leasing, and capital allocation track records often deliver better performance.

Market Liquidity
REITs listed on major exchanges provide easier entry and exit compared to direct property ownership.

Top Commercial REITs Worth Considering

While performance and fit depend on personal goals and risk tolerance, the following commercial REITs are often highlighted by investors for income and growth potential:

1. Prologis

A global leader in industrial and logistics real estate, Prologis owns warehouses, distribution centres, and logistics hubs. Strong demand from e-commerce and supply chain growth supports stable rental income and long-term growth.

Strengths:

• Exposure to industrial property growth

• High occupancy and strong tenant demand

• Global diversification

2. Simon Property Group

A major retail commercial REIT, Simon owns premier shopping malls and outlet centres. Its focus on trophy retail assets and strategic redevelopment positions it well for resilient performance as consumer demand evolves.

Strengths:

• Large, high-traffic retail portfolio

• Strong tenant base with long-term leases

3. Realty Income

Known as “The Monthly Dividend Company,” Realty Income features a diversified portfolio of retail, commercial, and service-oriented properties under long-term net leases. Frequent dividend distributions attract income-focused investors.

Strengths:

• Monthly dividend distribution

• Diversified tenant mix across sectors

4. Boston Properties

A leading office REIT with a focus on high-quality office buildings in major U.S. cities. It targets central business districts that command premium rents and attract corporate tenants.

Strengths:

• Prime office locations in key markets

• Professional office management expertise

5. Kimco Realty

Another retail-focused REIT specialising in grocery-anchored centres and community retail properties. These locations tend to be more resilient in changing retail environments due to essential-goods anchor tenants.

Strengths:

• Grocery-anchored retail reduces vacancy risk

• Community-oriented commercial assets

Commercial REITs in African Context

While the largest commercial REITs are primarily listed in global markets, African investors also have local REIT options — particularly in South Africa — that focus on commercial assets:

Growthpoint Properties
A diversified commercial REIT with holdings across office, retail, and industrial properties in South Africa. It offers exposure to local commercial real estate income and capital growth.

Redefine Properties
Another prominent South African REIT with a mix of commercial property types, providing a way to access income-producing assets domestically.

Fortress REIT
Focused on high-quality commercial buildings, often attracting multinational and corporate tenants.

These locally listed REITs allow South African and African investors to participate in commercial real estate performance via familiar markets.

How to Choose the Best Commercial REIT for You

Here are key factors to consider when evaluating commercial REITs:

1. Dividend Yield and Consistency
Look at current yields and the history of dividend payments to gauge income reliability.

2. Property Quality and Location
Prime commercial locations usually support stable occupancy and rent escalation.

3. Diversification Across Sectors
A mix of retail, industrial, office, and mixed-use properties can help spread risk.

4. Management Track Record
Experienced teams with strong leasing and acquisition strategies often perform better in market cycles.

5. Liquidity and Accessibility
REITs traded on major exchanges offer easier buying and selling relative to direct property.

African Land helps clients assess how individual REITs fit into broader investment strategies, including aligning with property objectives and diversification goals.

How African Land Supports Commercial REIT Investing

African Land offers guidance to investors considering commercial REITs by:

• Explaining how REITs complement direct property investments

• Comparing REIT performance across markets and sectors

• Helping integrate REIT exposure into income and growth strategies

• Providing insights on local African REIT options and global opportunities

By blending REIT analysis with direct property expertise, African Land helps investors build balanced and resilient portfolios that meet both income and long-term growth goals.