Delaware statutory trust sales reached roughly $8.39 billion through October 2026. That is a 26% increase over the $6.65 billion raised through the same period in 2025. Mountain Dell Consulting supplied the figures, which AltsWire reported. Higher fundraising does not mean every DST will perform well.
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, reviews these offerings because strong sales can mask illiquidity, sponsor dependence, and debt risks. We focus on suitability and due diligence, not on the headline growth rate.
October 2026 sales totaled $918.45 million. That is a 9.56% increase from September’s $838.3 million. Taylor Garrett, president of Mountain Dell, projected about $10.2 billion in year-end DST equity at the Alternative & Direct Investment Securities Association annual conference. Those figures describe capital flow, not investor returns.
What the sales figures show
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The Mountain Dell/AltsWire data points to a busy year for 1031-exchange replacement property programs. The table below summarizes the period sales data Mountain Dell reported through October 2026.
| Period | Reported sales | Change or note |
|---|---|---|
| Year-to-date October 2026 | Approximately $8.39 billion | Up 26% from $6.65 billion through October 2025 |
| October 2026 | $918.45 million | Up 9.56% from September 2026 |
| September 2026 | $838.3 million | Prior month baseline |
| Year-end projection | Approximately $10.2 billion | Forecast by Taylor Garrett at ADISA |
Five sponsors led DST equity fundraising through October. Ares Real Estate Exchange held the largest share, followed by Blue Owl Real Estate Exchange and ExchangeRight Real Estate.
| Sponsor | Equity raised through October 2026 | Market share |
|---|---|---|
| Ares Real Estate Exchange | Approximately $1.62 billion | 19.35% |
| Blue Owl Real Estate Exchange | $731.3 million | 8.72% |
| ExchangeRight Real Estate | Approximately $694.7 million | 8.28% |
| Hines Real Estate Exchange | $643.2 million | 7.67% |
| JLL Exchange | $450.4 million | 5.37% |
Hines Real Estate Exchange also launched the month’s largest new offering, HREX 10 DST. The offering seeks roughly $725.2 million for multifamily properties in California, Georgia, Illinois, Massachusetts, Rhode Island, and Tennessee. Ares Real Estate Exchange launched AIREX Portfolio 12 DST, targeting about $501.6 million for industrial properties in Florida, Illinois, Texas, and Washington, D.C.
Industrial and multifamily properties accounted for 34% and 31% of syndicated offerings, respectively. At month end, 49 active sponsors were offering 98 programs.
Why rising sales do not reduce risk
Capital raised is not the same as investment performance. A sponsor can raise hundreds of millions of dollars and still deliver poor distributions. It can also suffer a refinancing failure or lose property value. Sales growth only tells us how much money entered DST programs, not how those assets will perform.
DST interests are securities regulated by the Securities and Exchange Commission (SEC). They are typically sold through broker-dealers overseen by the Financial Industry Regulatory Authority (FINRA).
FINRA Rule 2111 requires that a recommended security be suitable for the investor. The rule covers reasonable basis, customer-specific facts, and quantitative limits. FINRA Regulatory Notice 10-22 reminds firms to investigate private placements reasonably before recommending them. Those duties apply whether sales are flat or surging.
Illiquidity
Most DST programs have holding periods of five to ten years. There is no ready public market for beneficial interests. An investor who needs cash before a liquidity event may face deep discounts or may not be able to sell at all. This risk does not disappear simply because new sales are strong.
Sponsor control
Investors in a DST are passive. The sponsor controls leasing, capital improvements, refinancing, and the eventual sale. If the sponsor mismanages cash flow or takes on too much debt, investors have limited ability to intervene. Our firm reviews DST losses to determine whether the selling firm performed adequate due diligence on the sponsor and the offering documents.
Leverage and refinancing
Many DST programs rely on property-level debt. Sponsor-controlled refinancing decisions can affect distributions and principal recovery. If interest rates rise or property values fall before maturity, a refinance may be expensive or unavailable. Investors should review the loan terms, maturity schedule, and any interest-rate hedges in the private placement memorandum.
Distributions and concentration
Monthly distributions are not guaranteed. A sponsor can suspend them if net operating income drops. Investors also face concentration risk if the DST holds only one property type or a small number of assets. Industrial and multifamily properties dominated the 2026 market, so a downturn in either sector could affect many programs at once.
Tax and 1031 considerations
DSTs are commonly used to defer capital-gains tax under Internal Revenue Code Section 1031. A trust that fails to follow IRS Revenue Ruling 2004-86 may jeopardize that tax treatment. Investors should review the offering structure and replacement identification deadlines with qualified tax counsel.
Practical records to review
Investors who experience DST losses should gather key records. These include the private placement memorandum, subscription agreement, and investor suitability questionnaire. They should also keep trade confirmations, account statements, and any correspondence about the offering. These records show what the broker-dealer knew, disclosed, and recommended.
Our firm uses them to assess whether the sales practice complied with FINRA suitability and due diligence standards.
We have reviewed investor complaints involving programs such as the One on 4th DST and the 345 Flats DST. Those matters show how sponsor distress and distribution suspensions can hurt investors during broader market growth. Our DST investor losses guide explains the recovery issues we evaluate. We do not claim that every DST or sponsor is fraudulent.
Frequently asked questions
What do the 2026 DST sales figures show?
Mountain Dell/AltsWire data shows DST sales of about $8.39 billion through October 2026, up 26% from 2025. October sales were $918.45 million, up 9.56% from September 2026.
Does higher DST sales growth mean safer investments?
Higher sales growth does not make a DST safer. Sales measure capital raised, not investment performance. A DST can raise substantial equity and still experience illiquidity, sponsor mismanagement, debt problems, or distribution suspensions.
What FINRA rules apply to DST recommendations?
FINRA Rule 2111 requires suitable recommendations based on reasonable basis, customer-specific, and quantitative analysis. FINRA Regulatory Notice 10-22 requires reasonable due diligence for private placements such as DSTs.
What records should an investor keep if a DST loses value?
Investors should keep the private placement memorandum, subscription agreement, suitability questionnaire, trade confirmations, account statements, sponsor reports, and written communications. These documents help evaluate whether the sale complied with applicable standards.
Past results do not guarantee future outcomes. This article is for informational purposes and does not constitute legal or tax advice.