DST Market Update 2026: Trends, Volume, and What's Ahead

A market approaching $10 billion a year

Delaware Statutory Trust (DST) fundraising closed 2025 at roughly $8.41 billion, an almost 49% increase over the roughly $5.66 billion raised in 2024 [1]. Growth has continued into 2026: equity raised through July totaled approximately $5.5 billion, up 31% from the roughly $4.2 billion raised over the same seven months of 2025, and July alone brought in $985.1 million, a year-to-date monthly record [2]. Mountain Dell Consulting, the research firm both figures come from, told AltsWire the industry is on pace to raise about $10 billion for the full year [2].

A DST is a legal structure that lets many investors hold fractional stakes in large commercial properties. Its main draw is tax: an interest in a DST qualifies as replacement property in a 1031 exchange, the rule that lets a real estate investor defer capital-gains tax by rolling the proceeds of one sale into another property.

As of the end of July 2026, Mountain Dell counted 59 active sponsors running 110 separate programs, up at least 33% from a year earlier [2]. The typical program also moved faster: average time on market for active offerings fell 45% year over year, from 407 days in mid-2025 to 225 days in mid-2026 [2]. A typical DST raises between $50 and $150 million, and a typical individual commitment runs $250,000 to $400,000.

Three forces sit behind the climb: baby boomers stepping back from hands-on property management, wider awareness as more advisors and CPAs raise DSTs with clients, and minimums lower than buying commercial real estate outright.

The property types sponsors favor

Sponsors gravitate toward property types that throw off steady, predictable income - the kind of asset a passive investor can hold without surprises. As of July 2026, industrial and multifamily remained the two most common asset types, at 31% and 28% of syndicated offerings respectively [2].

Multifamily led the field for years on steady income and deep institutional demand that helps when it is time to sell. Industrial has since caught up, tracking the broader shift of real estate money toward logistics and distribution.

What Top1031 doesn't estimate

Cash-flow structuring and hold-period assumptions vary by sponsor, by property, and by how much debt an offering carries, and each Trust discloses its own figures in its Private Placement Memorandum (PPM). Top1031 does not compute, estimate, or project outcomes for any DST - a disclosed distribution rate or hold-period assumption is the sponsor's own number, not ours, and it belongs on that Trust's own record next to its evidence, not folded into a market-wide generalization. Investors comparing offerings should read each PPM's own disclosed figures rather than treat a market-wide average as a stand-in for any one Trust's outcome.

Sizing up a sponsor

The market is concentrated among established sponsors with long track records. A few things separate one from another.

Track record. How many DSTs has the sponsor completed, and how did those deals hold up through downturns? Each Sponsor's Top1031 Grade summarizes what's documented about that history.

Asset management. The sponsor runs the property for the entire hold, typically 5 to 10 years. Its property management, leasing, and capital-improvement decisions flow straight through to what investors eventually receive.

Disposition. The final outcome turns on how and when the sponsor sells. A history of selling at or above the price stated in the offering materials is one signal worth weighing, and full-cycle sales are part of the public record Top1031 tracks for each Sponsor.

Fees. Sponsors charge acquisition fees (typically 1-3% of property value), annual asset-management fees (typically 0.5-1%), and disposition fees (typically 1-3%). Each one reduces what reaches investors, and the exact structure varies by sponsor and is disclosed in the PPM.

What's shaping the market in 2026

1. DST-to-DST exchanges are growing. As older DSTs reach their sale phase, investors are rolling the proceeds into new offerings, a self-sustaining cycle that has become a meaningful source of new DST fundraising.
2. Smaller minimums. Some sponsors have dropped minimums to $50,000-$100,000, opening DSTs to a wider range of 1031 exchangers.
3. Industrial stays in demand. Last-mile logistics, cold storage, and light industrial keep drawing DST investors after long, credit-tenant leases.
4. Sponsor competition is increasing. Mountain Dell describes the market as becoming more competitive and diverse as sponsor and program counts climb [2].
5. Advisor adoption. More RIAs, CPAs, and estate-planning attorneys are bringing DSTs to their clients, broadening the investor base beyond self-directed real estate buyers.

Questions worth asking before committing

Sponsor financial health. A DST is an illiquid, long-term commitment, and a sponsor that runs into trouble mid-hold can't be swapped out easily. Its balance sheet and corporate backing carry weight.

Replacement-property pipeline. When a DST exits in 5 to 10 years, many investors want to 1031 exchange again. Some sponsors offer "next-cycle" DSTs for a seamless rollover; others leave the investor to find their own replacement.

Leverage. Some DSTs carry meaningful debt, 50-60% of the property's value, which amplifies both potential outcomes and risk. The debt structure matters, including fixed versus variable rates and maturity dates.

Property-market conditions. The tax deferral is only one part of the picture. The underlying real estate carries its own risk regardless: location, tenant quality, market fundamentals, and comparable sales all bear on the result.

[1]: https://altswire.com/dst-sales-surpass-8-4-billion-in-2025-according-to-mountain-dell/

[2]: https://altswire.com/dst-sales-hit-year-to-date-high-topping-985-million-in-july/