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!
A Leon County judge has ordered Florida’s administrative courts to restart arbitration on more than 400 stalled Citizens Insurance cases, reigniting a legal showdown over whether the state’s insurer of last resort can force policyholders out of traditional courtrooms. The ruling directly conflicts with a separate Hillsborough County injunction that called Citizens’ arbitration system “likely unconstitutional,” setting up a rare judicial clash that could reshape how Floridians fight denied or underpaid property claims.
Inhabit has launched a powerful new suite of AI‑driven tools designed to modernize leasing, strengthen fraud prevention, and simplify compliance for property managers nationwide. From advanced leasing assistants and NYC‑specific regulatory AI to instant income verification and upcoming identity‑screening tech, these innovations aim to solve some of the industry’s toughest challenges. Real estate professionals—especially in multifamily—can expect faster operations, stronger safeguards, and a more efficient workflow as these technologies roll out.
A growing body of demographic research suggests that today’s housing shortage may give way to a future surplus as millions of Baby Boomer–owned homes return to the market over the next two decades. With affordability at historic lows and inventory still tight, this long‑term shift could eventually cool prices and transform the landscape for real estate professionals. The analysis draws parallels to aging populations abroad and highlights why understanding demographic cycles is becoming essential knowledge for agents, brokers, and mortgage professionals preparing for the next era of the housing market.
Griffin Funding has appointed John Jones as Senior Vice President of Growth and EOS Integrator, a move aimed at accelerating the lender’s push toward $3 billion in annual non‑QM loan volume by 2030. Jones, previously the company’s fractional integrator and COO, will lead expansion strategies, operational optimization, and leadership development as the lender strengthens its position in the increasingly competitive non‑QM market.
A new report shows Tampa outperforming the national real estate slowdown with a 6.5 percent annualized multifamily return, nearly 20 percent higher than the U.S. average. While many metros face oversupply or regulatory drag, Tampa’s balanced development pipeline, strong population growth, and investor confidence continue to fuel resilient performance heading into 2026.
A new Colliers outlook reveals that global capital is picking up momentum again, with investors shifting toward more active, hands‑on strategies. Data centers are surging, offices are rebounding, and value‑add plays like adaptive reuse are defining the next wave of opportunity. Regional markets—from the U.S. to APAC—are seeing renewed demand as fundraising spreads across continents and investors seek speed, control, and scale. This snapshot helps today’s real estate and finance professionals stay aligned with where global money is moving next.
