💸 Passive Income from Commercial Real Estate: What to Expect
Last Update 6 months ago
Commercial property is a solid source of passive income, especially when you:
- Rent out shops, offices, or warehouses
- Lease to banks, franchises, or multinationals
- Use long-term contracts with annual rent escalations
Typical Monthly Returns in Major Cities:
- Retail Shops: 0.6%–1.2% of property value
- Offices: 0.5%–0.9% of property value
- Warehouses: 0.7%–1.0% of property value
Benefits:
- Steady cash flow
- Property value appreciation
- Hedge against inflation
Downside: Vacancies or bad tenants can reduce income, so screening is key.