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.
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!
Miami’s luxury condo market has many success stories, but few rise to the level of Maile Aguila. After closing more than $1 billion in sales in 2024, Aguila has become one of the most influential forces in Brickell and downtown Miami. From her beginnings in accounting to becoming the go‑to expert for high‑end developments, her journey offers a blueprint for new agents: specialize, become hyper‑local, master the soft sell, and make yourself indispensable. Her story shows that passion, knowledge, and relentless learning are the keys to breaking into Miami’s booming luxury market.
Former NFL defensive tackle Kendal Vickers has traded stadium lights for property listings, launching a fast-rising real estate career after earning licenses in both Florida and Tennessee. Drawing on his construction background and the discipline he built in the league, Vickers quickly closed early deals and now leads sales for two major residential developments. Motivated by helping families find homes, he’s proving that with grit, education, and the right mindset, a powerful second act is possible—on or off the field.
A shifting housing market and evolving regulations are making title insurance more critical than ever in 2026. Cortes and Hay, a New Jersey title agency with over 50 years of experience, breaks down the essential factors every buyer and investor should understand—from the importance of thorough title searches to the growing need for investor protection, ALTA best practices, and expert guidance on 1031 exchanges. This updated snapshot helps consumers and future real estate professionals navigate today’s complex closing landscape with confidence.
Nearly half of today’s homebuyers expect to use AI in their buying journey, and Florida is becoming a leading testing ground. New platforms like Homa are automating most of the homebuying process, delivering major savings to buyers while still blending in human expertise. As both tech-driven tools and traditional agents adapt, the future of Florida real estate will rely on professionals who can combine smart technology with real-world experience.
Florida’s once‑red‑hot investment market is cooling fast, with cities like Orlando, Fort Lauderdale, and Jacksonville seeing steep drops in investor purchases. Rising insurance costs, swelling inventory, and squeezed profit margins are pushing investors to pause—or look elsewhere. But West Palm Beach stands apart, surging with luxury demand as it cements its status as “Wall Street South.”
With mortgage rates nearly a full point lower than last year and inventory slowly rising, 2026 is opening the door for more buyers to re-enter the market. Competition has cooled, bidding wars have eased, and sellers are more flexible than they’ve been in years. While winter weather temporarily slowed sales, spring is expected to bring renewed momentum. For buyers with steady finances and long‑term plans, this year may offer one of the most balanced markets since the frenzy of 2021–2022.
