Why Tax‑Deferred Property Programs Are Surging — and What It Means for Today’s Real Estate Professionals
Investment managers across the U.S. are rapidly rolling out new tax‑deferred real estate investment programs as demand skyrockets. With stronger market certainty, favorable conditions, and one of the largest generational wealth transfers in history underway, Delaware Statutory Trusts (DSTs) are becoming a major force in modern estate planning.
In recent weeks, major development and investment groups such as Denholtz, Forum Investment Group, and PREP Property Group have launched new DST offerings. These programs allow property sellers to defer capital gains taxes by reinvesting through 1031 exchanges—an increasingly appealing strategy for owners seeking passive income and long‑term estate benefits.
Even real estate powerhouse Blackstone has entered the DST arena, joining Brookfield, Starwood, Nuveen, Hines, and Ares Management. As DSTs move into the mainstream, both new and seasoned professionals are paying close attention.
“The DST market is projected to have an increase of about 30% year‑over‑year,” said Jennifer McCool, Executive Vice President and Head of Capital Markets at Denholtz.
The Mechanics Behind the Demand
DSTs allow investors to shift from active property management to passive income while maintaining tax‑deferred real estate exposure via fractional interests in institutional‑grade assets. Through 1031 exchanges, sellers can reinvest proceeds into like‑kind commercial properties, avoiding taxes that would otherwise be due immediately.
According to Mountain Dell Consulting, DST‑related sales hit $7.34 billion through November, with projections of $7.5 billion in 2025—up 33% from the prior year.
The Wealth‑Transfer Wave
With more than $100 trillion expected to change hands over the next two decades, estate planning strategies like DSTs are seeing structural demand growth. The recent federal “Big Beautiful Bill” preserved 100% capital gains deferral through like‑kind exchanges, removing the uncertainty that had previously slowed some investors’ planning.
As Forum Investment CEO Darren Fisk explained, many property owners hold highly appreciated assets and are seeking reduced operational intensity without sacrificing upside potential.
Risks Still Matter
DSTs aren’t without drawbacks. Investors must accept long capital lock‑ups, illiquid assets, and reliance on sponsor performance. These risks are familiar territory for many approaching retirement, reinforcing the need for proper education and due diligence—areas where real estate professionals can add tremendous value.
Market Conditions Fueling Rapid Growth
A tight supply of quality replacement properties and rising tax concerns are amplifying interest in DSTs. Denholtz recently launched its first DST—DX SB Industrial I DST—featuring a nine‑building industrial campus in Tampa, Florida. The offering sold out in just six weeks, demonstrating powerful investor demand.
Sponsors are increasingly focusing on defensive assets such as industrial, multifamily, and essential‑needs retail, backed by long‑term, predictable cash flow. PREP Property Group, known for retail assets like Hillside Village Mall in Texas, plans to launch its inaugural DST offering in early 2026.
“Retail real estate is experiencing its strongest fundamentals in decades,” said PREP CEO Michael Phillips. “New supply is at historic lows, making this a prime moment for investors to reposition capital.”
Why This Matters for Real Estate Professionals
DSTs and 1031 strategies are more than investment buzzwords—they’re essential knowledge for today’s real estate agents, brokers, and advisors. Clients increasingly seek professionals who understand advanced tax‑advantaged investment structures.
This is where education becomes a differentiator. At Cameron Academy, real estate professionals across Florida and beyond are strengthening their expertise in topics like 1031 exchanges, investment analysis, and portfolio‑driven real estate strategy—making them more competitive in a rapidly evolving market.
Source
This article was inspired by reporting from CoStar News, a leading authority on commercial real estate insights.
More Articles
Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!
As drones become an increasingly common sight in the skies over the northeastern United States, particularly in Vermont and New York, reactions range from fascination to concerns over privacy.
In a move that has ignited a fresh wave of controversy, the State Bar of California has acknowledged the use of artificial intelligence in crafting some of its bar exam questions.
In the ever-evolving landscape of real estate investment, landlords are increasingly turning to Limited Liability Companies (LLCs) to manage their rental properties. This shift is not without reason; the benefits of forming an LLC are numerous, ranging from tax advantages to liability protection.
In the bustling world of game development, the quest for the ultimate game engine is akin to seeking the Holy Grail. As I delved into the labyrinthine world of game engines, testing over 25 contenders, the cream of the crop emerged. Here, I present the top seven game engines for 2025, each with its unique flair and functionality.
The REAL ID Act, a legislative measure passed by Congress in 2005, was born out of the 9/11 Commission’s recommendation for the Federal Government to establish standards for identification issuance.
The journey to becoming a licensed real estate agent begins with selecting the right school, and HousingWire has recently spotlighted the top online real estate schools for 2025. This comprehensive review evaluates schools based on flexibility, pricing, pass rates, and student support, ensuring that future agents have the best tools at their disposal.
