Delaware Statutory Trust (DST) investment activity saw a meaningful rebound in 2025, highlighting continued investor demand for passive real estate strategies and tax-efficient investment structures.
According to data compiled by Mountain Dell Consulting and reported by AltsWire, total DST equity raised in 2025 reached approximately $8.4 billion, a significant increase from roughly $5.6 billion in 2024. While slightly below the record $9.2 billion raised in 2022, the increase reflects renewed momentum across the DST marketplace.
Fundraising activity strengthened throughout the year, with December representing the highest monthly total of 2025, generating approximately $862 million in equity. Many industry observers believe this momentum could continue into 2026, with the potential for DST fundraising volume to exceed $10 billion if current trends persist.
A number of established sponsors contributed to overall fundraising activity, with multifamily and industrial properties representing a meaningful portion of offerings. While sponsor rankings fluctuate year-to-year, the broader trend suggests continued platform participation and a steady pipeline of DST investment opportunities across property sectors.
What This Means for Investors
The increase in DST fundraising reflects several broader trends in the real estate investment landscape.
First, it signals improving transaction activity in commercial real estate, as many DST investments are tied to investors completing 1031 exchanges following the sale of appreciated property.
Second, the data suggests continued investor interest in passive real estate ownership, particularly among investors seeking professionally managed assets and portfolio diversification.
Several factors are contributing to the sustained demand for DST investments, including:
- Increased liquidity and transaction volume in commercial real estate
- Continued availability of institutional-quality replacement property options
- Ongoing interest in tax-deferral strategies through 1031 exchanges
- Investors seeking to transition away from active property management
A Growing Role in the 1031 Exchange Market
While every investment strategy should be evaluated in the context of an investor’s overall objectives, the 2025 fundraising data underscores the continued relevance of DSTs within the 1031 exchange marketplace. For many investors, DST structures provide a way to maintain real estate exposure while shifting to a more passive ownership model.
As the real estate market continues to evolve, DST offerings remain one of several options investors may consider when evaluating replacement property strategies.
