DST equity placement reached $1.2 billion in the first quarter of 2026 according to Mountain Dell Consulting — a new quarterly record, eclipsing the Q4 2021 high.
Industrial and multifamily DSTs accounted for over 70% of placed equity. Average target distributions ran 5.2% — modestly above the 4.8% seen in late 2024 — as sponsors passed through higher in-place rents.
The volume reflects strong 1031 exchange activity, with brokers reporting more landlords using DSTs as their replacement vehicle to exit active management. Industry sources expect the trend to continue through 2026.