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Delaware Statutory Trust (DST) Market Growth & 2025 Outlook
The DST market has demonstrated significant growth, with offerings raising nearly $5.66 billion in 2024, marking a 10.2% increase from the previous month and a 12% increase compared to 2023. This upward trend indicates strong investor confidence and a healthy appetite for DST investments.
The outlook for Delaware Statutory Trusts (DSTs) in 2025 appears promising, driven by several key trends and market dynamics.
Key Economic Drivers Shaping DST Investment Landscape in 2025
The global economy is projected to exhibit strong growth in 2025, supported by resilient consumer spending and declining interest rates. Such economic conditions are conducive to the real estate sector, potentially enhancing the performance and appeal of DST investments.
The Rise of Passive Real Estate Investment Through DSTs
Investors are increasingly gravitating towards passive investment vehicles like DSTs. This shift is largely due to the desire to transition from active property management to more hands-off approaches, allowing for consistent income streams without the operational responsibilities.
Evolution of 1031 Exchange Strategies: Reverse & Improvement Exchanges
The 1031 exchange market is also experiencing notable shifts, with a rise in reverse and improvement exchanges. These complex transactions often lead investors to consider DSTs as viable replacement properties, given their compliance with 1031 exchange requirements and their ability to offer diversified real estate exposure. By providing access to a variety of property types and geographic locations, DSTs help mitigate risk and optimize investment returns.
Diversification Benefits & Tax Advantages Driving DST Adoption
The 2025 outlook for DSTs is optimistic due to increasing investor interest in passive real estate investments, evolving 1031 exchange strategies, supportive economic conditions, and inherent diversification and tax benefits.
Keystone helps transform single investments into diversified real estate portfolios designed to meet your income, tax, and financial goals while reducing uncertainty. Learn more about our strategy and our DST portfolio, or contact us below to discuss.