Posted
November 17, 2025

What Real Estate Investment Types Make the Most Money?

Investing

Real estate investments come in many forms. Some investors opt to purchase a single-family rental home, others choose to buy properties to renovate and sell, some even go for the short-term rental route via services like Airbnb. The truth is that all of these avenues can be profitable, so it’s difficult to pinpoint which direction to go in that can give you the most bang for your buck. 

So which investment type is the way to go if your goal is to rake in as much cash as possible through your property?

The highest earning real estate consistently comes from (drumroll please)...

The commercial sector!

Commercial real estate attracts investors because of its strong ROI, long-term stability, and opportunity for scalable growth. However, there are also multiple different types of commercial investments that can offer you all three of these perks.

So to make a long story short, exactly what real estate makes the most money?

Let’s break down for you the top-performing asset classes and why now is the ideal moment for investors to partner with a professional brokerage that can help them secure and manage their commercial real estate investments.

1. Multifamily Housing

Multifamily homes aren't technically considered “commercial” until it includes 5+ units, but once it crosses that threshold it becomes one of the most lucrative types of commercial real estate.

What Makes It Profitable

  • Predictable demand that often continues even during unfavorable economic conditions
  • Includes multiple streams of revenue (units, parking, storage, pet rent, etc.)
  • Lower risk (one vacancy doesn’t tank your entire income)

Who It’s Ideal For

Investors seeking stable cash flow and long-term appreciation.

2. Industrial Real Estate

Industrial properties like warehouses, manufacturing facilities, and distribution centers have become the top-performing commercial real estate asset over the past decade, and we don’t see that changing any time soon.

Why It’s So Lucrative

  • High demand driven by e-commerce growth
  • Low maintenance costs
  • Long leases (5–15 years), offering steady, predictable income
  • Lower tenant turnover

Most Profitable Subcategories

  • Fulfillment centers
  • Cold storage
  • Logistics hubs near highways or ports

3. Retail Centers

Contrary to popular belief, retail isn't dying. This narrative has been formed due to poorly-performing retail stores, but it definitely doesn’t tell the whole story!

Grocery-anchored centers, luxury retail, and service-based tenants (gyms, salons, medical, pet care) continue to dominate.

Why It Makes Money

  • Strong anchor tenants boost foot traffic
  • Triple-Net (NNN) leases shift expenses to tenants
  • Opportunity to redevelop, subdivide, and increase NOI

Who Benefits

Retail centers are great for investors who want a high monthly income with minimal operational responsibility. If this is you, it might be worth it to keep this in mind during your next commercial property search.

4. Office Properties

The office real estate landscape has transformed within the past decade, but smart investors are capitalizing on new trends instead of succumbing to the negative narratives around what this investment type will look like in the future.

High-Profit Office Real Estate Types

  • Medical offices
  • Government-leased buildings
  • Coworking‐optimized spaces
  • Suburban office parks

What Makes It Profitable

  • Long lease terms (often 7–10 years)
  • Strong institutional tenants
  • Flexibility to reposition underperforming buildings

5. Mixed-Use Developments

These properties combine retail, office, and residential into a single project. This asset offers a lot of potential for investors.

Why It Makes Money

  • Multiple income streams
  • Highly walkable, attractive to urban renters
  • Higher property value due to diversified use

Investors often see substantial appreciation when a neighborhood begins revitalizing, so this is a particularly attractive asset for investors who are interested in fast-developing cities such as Detroit.

So Which Real Estate Makes the MOST Money?

Based on current market data and long-term trends, the top three highest-earning categories are:

  1. Industrial (particularly logistics and warehousing)
  2. Multifamily (large complexes)
  3. Retail with NNN leases (particularly grocery-anchored centers)

These asset classes outperform because they combine high demand, predictable income, and scalability. Overall, the highest returns come from pairing profitable asset classes with a real estate professional who can source the right deals and negotiate on your behalf.

At NREMG, we specialize in identifying and securing these high-performing opportunities for our clients. With our deep market insight, we help investors maximize returns while minimizing risk. Get in touch with us today for expert guidance on securing your next commercial investment! 

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