Investment in Delaware Statutory Trusts Rose to $7.5 Billion
Investors are increasingly pooling capital into commercial real estate through DSTs to secure tax-deferred interests.
Updated on Oct. 7, 2026 in Commercial
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Equity raised for Delaware statutory trusts reached $7.5 billion through September 2026, marking a 27% increase over the $5.9 billion raised during the same period in 2025. This growth reflects a rise in the use of these platforms for passive real estate ownership.
Why it matters
Investors utilize Delaware statutory trusts to gain fractional ownership in commercial assets while deferring capital gains taxes, a strategy that has driven significant platform creation by institutional managers. The shift underscores a growing preference for structured, passive real estate investment vehicles.
Total equity raised for Delaware statutory trusts reached $7.5 billion through September 2026, a 27% increase over the $5.9 billion total recorded by the same time in 2025. Monthly inflows totaled $357 million in September 2026, compared to $461 million in September 2025.
The players
Ares Real Estate Exchange
An investment firm that manages large-scale property portfolios and provides access to commercial real estate through institutional platforms.
Blue Owl Capital
An alternative asset manager that creates and oversees investment vehicles, including Delaware statutory trusts for individual investors.
ExchangeRight Real Estate
A provider of real estate investment services that offers tax-advantaged portfolio options for passive property ownership.
Hines Real Estate Exchange
A global real estate investment firm that manages diverse commercial assets and launched its own DST platform in 2022.
The details
Investors pool funds into Delaware statutory trusts to acquire fractional interests in professional-grade commercial real estate, allowing for passive involvement. Industrial assets currently capture 39% of total investment, followed by multifamily assets at 22%. Institutional platforms, including those managed by Ares Real Estate Exchange and Blue Owl Capital, are actively creating these trusts to accommodate rising demand.
Timeline
September 2022 marked the launch of the Hines Real Estate Exchange DST platform.
Equity totaling $5.9 billion was raised between January 2025 and September 2025.
Investors contributed $461 million to these trusts in September 2025.
Equity totaling $7.5 billion was raised between January 2026 and September 2026.
Investors contributed $357 million to these trusts in September 2026.
The Home Front
The rise in Delaware statutory trust investment follows the long-standing use of IRS Section 1031 like-kind exchange provisions to manage tax liabilities. This institutional trend reflects a maturing market where individual investors seek passive alternatives to traditional direct property ownership.
If you are exploring passive real estate strategies, confirm whether a Delaware statutory trust aligns with your specific tax planning and long-term liquidity needs. Always consult with a licensed financial advisor to verify how these fractional ownership interests fit your personal investment portfolio.
The takeaway
The sustained growth in Delaware statutory trusts highlights their role as a primary vehicle for tax-deferred, passive commercial real estate ownership. Interested investors should track how industrial and multifamily asset allocations shift as major platforms like Ares Real Estate Exchange expand.
Further reading
For more information on market-based property strategies, visit the Commercial section.
Source note: This article includes information reported by Bisnow.
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