DST Sales Are Surging. If You're Not Participating, You're Getting Outflanked

The Delaware Statutory Trust (DST) market is on a tear this year, according to AltsWire.com. DSTs are a popular option for older investors seeking to retire from active operational control of investment and business-purpose real estate by using passive rather than active real estate in 1031 Exchanges.

Through the third quarter of 2025, DST offerings have already raised more than $5.7 billion in equity—a 46% jump year-over-year—eclipsing the entire total for 2024. At this pace, 2025 is on track to be the strongest year since 2022, with projections approaching $7.5 billion in total equity raised.

A Better Option for Many

That kind of acceleration doesn't happen by accident. It's being driven by an aging demographic of active real estate owners in need of alternatives to:

1. Huge tax bills triggered by selling to exit ownership duties, or

2. Estate plans that mandate owners hold onto active property through their elderly years.

The first option is expensive to the owner's net worth and sacrifices estate planning tax benefits, while the second is an especially complex proposition when heirs have no interest or ability in assuming operational control when the owner-generation no longer can.

DST sales are being heavily driven by advisors leaning into this space, helping clients defer massive tax bills and reposition wealth into institutional-quality real estate. When done correctly, this is an opportunity for improving a client's retirement, estate, and succession planning.

While many advisors are too busy to explore alternative strategies and hesitate to take on fresh obligations in areas outside of traditional investments, DST-savvy advisors are building trust, strengthening relationships with CPAs and attorneys, and winning new clients who are actively seeking expertise their current advisors haven't offered.

More Than a Tax Deferral

The purpose of DSTs doesn't have to be just about tax deferral, as 1031 exchanges are often presumed. DSTs can also be a mid- and long-term planning victory with potential for:

• Full retirement from real estate headaches

• Property upgrades

• Greater diversification

• No management or administrative obligations

• Passive income streams

• Streamlined living estate plans and estate distribution strategies

If You Don't, Who Will?

Every week, aging investors are selling appreciated property and triggering taxes. Many of them are prospective DST candidates who are never aware that DSTs might be a solution.

Meanwhile, other owners are finding advisors to help them execute passive 1031 exchanges that transition them into passive real estate ownership with DSTs—$511.4 and $552.6 million in July and August 2025 alone.

If you're not having this conversation, you're leaving room to be outflanked by competitors. Or worse yet, by never broaching the topic with your clients or prospects who own investment real estate, you risk existing clients triggering unnecessary tax bills that they could later regret when they learn another option was available.

By offering an array of DST planning alternatives with the potential to improve client retirement, estate, and tax outcomes, you participate in a market with clear demand and growing relevance among tax and legal advisors.

If Not Now, When?

The DST market's success year-to-date suggests real estate property owners need proactive guidance.

The boomer and older generations own trillions of dollars in real estate, much of which could be suitable for passive 1031 exchanges. They want someone who can integrate real estate into a comprehensive tax, retirement, and succession plan. And they're not waiting for permission.

Advisors who initiate these conversations are strengthening their brand, deepening client trust, and growing their practice while others play catch-up.

The market is moving. Aging investment real estate owners are listening. The only question is whether they'll be hearing from you or from someone who already knows this space.

To learn more, book a discovery call now!

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This site provides brief and general description of certain tax strategies including Opportunity Zones, Sections 1031, 1033, and 721 Exchanges. There are various risks related to purchasing securities as part of any planning strategy, including tax complexity, illiquidity and restrictions on ownership and transfer. RCX Capital Group and its representatives do not provide Tax Advice. Because each prospective investor’s tax implications are different, all prospective investors should consult with their tax advisors.