Investors Poured $7.5 Billion into Real Estate Trusts
Investors are utilizing Delaware statutory trusts to pool funds for commercial real estate and manage capital gains taxes.
Updated on Oct. 7, 2026 in Commercial
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U.S. investors raised $7.5 billion in equity for Delaware statutory trusts (DSTs) through September 2026. This total marks a 27% increase compared to the $5.9 billion raised during the same period in 2025.
Why it matters
Investors use these trusts to passively hold fractional interests in commercial properties, a strategy primarily driven by the ability to defer capital gains taxes. Institutional platforms have expanded to meet this growing demand, shifting more individual capital into industrial and multifamily real estate assets.
Investment in Delaware statutory trusts rose 27% to $7.5 billion through September 2026, compared to $5.9 billion in the same period a year prior. Industrial assets now represent 39% of these investments, while multifamily properties account for 22%.
The players
Ares Real Estate Exchange
An investment firm that raised $1.5 billion in 2026 to support Delaware statutory trust platforms.
Blue Owl Capital
An asset manager that raised $626 million in 2026 to support commercial real estate investment.
ExchangeRight Real Estate
A real estate investment firm that raised $619 million for DSTs in 2026.
Hines Real Estate Exchange
A global real estate investment firm that raised $590.6 million for its DST platform in 2026.
The details
Individuals contribute capital to these trusts to gain fractional ownership in commercial real estate without the burden of direct management. Institutional firms like Ares Real Estate Exchange and Blue Owl Capital have created specialized platforms to organize these pools. By aggregating funds, these trusts allow participants to access large-scale assets that might otherwise be unavailable to individual investors.
Timeline
September 2022: Hines Real Estate Exchange launched its DST platform.
January 2025 through September 2025: $5.9 billion was raised for DSTs.
September 2025: $461 million was raised for DSTs.
January 2026 through September 2026: $7.5 billion was raised for DSTs.
September 2026: $357 million was raised for DSTs.
Money Landscape
The growth in Delaware statutory trust investment reflects the continued reliance on Internal Revenue Code Section 1031 to defer capital gains taxes. This trend highlights how individual investors are increasingly utilizing institutional platforms to maintain tax efficiency while accessing commercial real estate.
Investors considering trusts to manage capital gains should review their tax liability and the specific asset allocation of the trust, as industrial and multifamily sectors currently dominate these portfolios. Because these are complex investment vehicles, consult a professional tax or financial advisor to weigh the risks of fractional ownership.
The takeaway
The surge in Delaware statutory trust participation shows a growing preference for passive, tax-deferred commercial real estate investment. If you are exploring this route, verify the manager's track record and ensure the underlying asset types match your long-term income goals.
Further reading
For more on property markets, explore our Commercial section.
Source note: This article includes information reported by Bisnow.
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