DST Sales Set 2026 Record With $985M Raised in July

Diversification Drives DST Fundraising Surge

AltsWire reports that 2026 is shaping up as a breakout year for Delaware statutory trust equity fundraising. According to Mountain Dell Consulting, DST sales through July reached approximately $5.5B—a 31% year-over-year increase after raising about $4.2B through the first seven months of 2025. July alone delivered $985.1M in new DST sales, an annual high-water mark and a sharp 34.7% jump from June’s total.

This acceleration comes as sponsors diversify offerings, particularly across industrial and multifamily sectors, which accounted for nearly 60% of all syndicated DST deals on the market as of July. With demand rising and more sponsors entering the space, the market for DSTs is both broadening and accelerating.

The Details

Industry fundraising looks set to break records in 2026. Mountain Dell told AltsWire it expects DST fundraising to exceed $10B for the year, well above the previous high of $9.4B set in 2022. Market leader Ares Real Estate Exchange alone has raised $1.2B year-to-date, claiming 22.2% of market share—more than double the $537.6M (9.8% share) secured by runner-up Hines Real Estate Exchange. Blue Owl, ExchangeRight, and Inland Private Capital round out the top five.

Deal flow is equally robust. NexPoint Securities launched July’s largest new DST offering, NexPoint Lodging II, targeting $81.6M for two hotels in Connecticut and Florida. Brookfield Real Estate Exchange debuted a nearly $59M industrial net lease program and a new data center DST in California. The number of active sponsors rose 33% to 59 as of July, offering 110 programs.

DST Market Competition Heats Up

Competition among DST sponsors is intensifying along with capital inflows. Mountain Dell’s data show that new offerings are moving faster, with average on-market duration dropping 45% to 225 days. That compares with 407 days a year earlier. Asset focus is evolving as well. Industrial and multifamily deals account for a combined 59% of active programs. Some sponsors are also rolling out new structures and share classes to broaden investor access as competition intensifies. Sponsors are widening their pitch to include alternatives like data centers, lodging, and net lease industrial assets.

The scale of activity now dwarfs even recent peak years, as institutional players and new entrants try to capture demand from 1031 exchange investors and retail capital seeking stable, tax-advantaged income streams. As a result, the DST industry is seeing both deal size and sponsor diversity expand rapidly year over year.

Why It Matters

July’s surge in DST sales signals a robust appetite among 1031 exchange investors for syndicated, institutionally managed real estate. With $5.5B raised through July and $10B projected for 2026, per Mountain Dell, DSTs are set to eclipse their 2022 peak and reinforce their role as a favored vehicle for deferring capital gains. Fast-moving programs and shorter marketing cycles indicate that investors are adapting quickly to new offerings and willing to move capital with less deliberation.

This momentum also underscores broader market shifts. Sponsors are investing more in product diversity and marketing, targeting alternatives like lodging and data centers alongside traditional multifamily and industrial DSTs. The fact that Ares leads by such a wide margin hints at winner-take-most dynamics, but the 33% spike in active sponsors shows the field remains fiercely contested.

Looking ahead, the persistent rise in sponsor and program count points to sustained competition, putting pressure on margins but fueling innovation in product design. As capital seeks yield in a still-volatile macro environment, DSTs may continue to draw inflows from both high-net-worth and institutional segments, reinforcing their importance in the CRE alts ecosystem.

What’s Next

The strong year-to-date fundraising pace suggests that DST sales are poised to surpass $10B in 2026. Market participants will be watching to see if fundraising keeps outpacing prior peaks and if new asset classes continue to gain traction among investors. Sponsors will likely respond with more differentiated offerings and aggressive timelines as they compete for market share. As more 1031 exchange investors seek both tax deferral and diversification, expect DST program launches and sponsor competition to remain elevated through year-end, with potential for new record volumes heading into 2027.