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!
Local elections across major U.S. cities have kicked off a wave of policy changes that could reshape development costs, rental income, and investment strategies heading into 2026. From NYC’s aggressive tenant‑protection agenda to Chicago’s sustainability push, Miami’s political uncertainty, and Boston’s steady zoning overhaul, the post‑election environment is redefining how real estate professionals, investors, and lenders should prepare for the year ahead.
Insurance carriers are rapidly rolling out AI-related exclusions that strip coverage from claims involving AI tools, automated decision‑making, or generative platforms like ChatGPT and Midjourney. With firms like Berkley and Hamilton introducing sweeping “absolute” and generative‑AI‑specific exclusions, professionals in real estate, mortgage, insurance, and finance now face new liability gaps. As AI becomes unavoidable in everyday work, understanding these exclusions is essential for protecting your career and staying compliant in a fast‑changing risk environment.
Proptech startup Venn has raised a $52 million Series B to unify the entire renting lifecycle into one intelligent platform, replacing over a dozen traditional systems and serving more than half a million tenants. As AI‑powered tools like Venn rapidly reshape property operations, real estate professionals — especially in fast‑moving markets like Florida — will need stronger education and tech‑savvy skills to stay competitive.
Florida’s Gulf Coast is undergoing a dramatic transformation as soaring insurance premiums, costly construction requirements, and the long shadow of Hurricane Ian force middle‑class families, workers, and longtime residents out of communities they once anchored. With premiums topping $5,700 a year — and many paying far more — Realtors warn of looming foreclosures, renters face steep increases, and entire neighborhoods are being rebuilt for wealthier newcomers. This mounting crisis is reshaping the state’s real estate landscape and leaving professionals scrambling to adapt.
Economic uncertainty, rapid tech advances and shifting population patterns are setting the stage for a pivotal year in commercial real estate. New findings from the Counselors of Real Estate, presented at NAR NXT, outline ten major forces reshaping strategy, investment and opportunity in 2026—from policy impacts and portfolio risk to AI adoption, capital flow changes, housing attainability and demographic shifts. This outlook offers clarity and caution for professionals across real estate, mortgage, finance and related fields.
Florida’s home insurance crisis is back in the spotlight as new reforms appear to be repeating decades‑old mistakes. Despite efforts to depopulate Citizens and attract private insurers, many of the companies taking over policies have ties to past insolvencies. Critics say weak oversight, generous ratings, and political influence are allowing unstable insurers to thrive while homeowners pay more for less protection. Experts warn that without transparent ratings, real accountability, and unified regulation, Florida’s insurance market will remain vulnerable—putting property values, lending, and the broader real estate industry at risk.
