I am in a partnership that rents a building to the company I work for. Does this qualify as a trade or business?

Since your ownership in the partnership is 3% (see string below) and if you do not make any decisions then you do not have active participation in the partnership activities.  You are an investor and not an active participant in the business affairs of the partnership.

(Edited:  04.12.2017 | 10:47a PST)

Hi and thanks so much for your response. You state that this "is a rental activity with active participation." But in reading the Active Participation criteria, we do not appear to meet them. Here's what is in TT:
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You meet the active participation requirements if:

1) You (including your spouse if married filing jointly) own at least 10% of the activity during the entire year, [WE DO NOT]  and

2) You are significantly involved in making management decisions or arranging for others to provide services. You do not necessarily have to be involved in day-to-day operations, but you must participate in a significant way in making decisions such as approving new tenants, deciding on rental terms, or arranging for others to provide services (such as repairs). [WE ARE NOT]

The second exception to the passive activity rules is if you are a "qualified" real estate professional working in a real property business. [WE ARE NOT]
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Based on the above and your response, it seems we should answer:

Did You Actively Participate? NO
and...
No. This rental doesn't require special handling.

Does this appear correct? Thank you!

@robert_tee Do you own the building your rent out to your employer?  If not, I agree.  If so, you make all the decisions about the building, the tenant and any other issues concerning the building.

We are in a partnership that owns the building and the partnership rents to my employer. We have a small interest in the partnership, roughly 3%, and make no decisions about the rental, tenant, or anything else concerning the building. Does that change anything? Thx!

@robert_tee Yes, at a 3% ownership you do not have active participation or special handling.

So to confirm, we can say 'No' to active participation, and 'No' to special handling? One of the conditions for special handling is "This property is rented to a business that I materially participate in." I just want to be certain if we can say no to that. Thank you.

@robert_tee Yes, you can say no to that question.

Thank you so much for your help!

I have this same question. However, my husband and I do own 34% of Company A and we handle everything about it. We rent a commercial building to another Company B that we also own 30% of and participate daily in. At this time, Company A only owns the one property but expects to add properties one day. Does this qualify as a trade or business? And, is the question referring to this single property or to Company A as a whole which owns the property?