Top 5 Property Types for DST Investments

A Delaware Statutory Trust (DST) is a popular investment vehicle for real estate investors looking to diversify their portfolios while enjoying the tax-deferral benefits of a 1031 exchange. DSTs allow investors to own fractional interests in institutional-quality properties without the responsibilities of direct property management. Understanding the types of properties available through DSTs can help investors make informed decisions that align with their financial goals.

1. Multifamily Properties

Multifamily properties, such as apartment complexes and senior living communities, are a common investment option in DSTs. These properties provide stable, long-term cash flow due to consistent tenant demand and multiple income streams. Multifamily assets tend to perform well in both strong and uncertain economic conditions, making them a reliable investment for income-focused investors.

2. Industrial Properties

The demand for logistics, warehouse, and distribution centers has surged, making industrial properties a valuable addition to a DST portfolio. With the rise of e-commerce and supply chain expansion, industrial properties offer stable returns and long-term growth potential. Many tenants in this sector sign triple-net (NNN) leases, where they assume responsibility for property expenses, reducing operational costs for investors.

3. Commercial Office Buildings 

Office buildings within a DST portfolio often feature long-term leases with corporate tenants, providing predictable rental income. These investments are typically Class A or institutional-grade properties in major metropolitan markets, offering lower vacancy risks and strong appreciation potential. However, investors should consider market trends, such as shifts in remote work, when evaluating office investments.

4. Retail Properties with Long-Term Leases

Retail properties in DSTs are often occupied by national brands and essential businesses, such as grocery stores, pharmacies, and convenience chains. Properties with long-term triple-net leases provide steady cash flow while shifting maintenance and property tax expenses to tenants. Retail properties with essential businesses tend to be more resilient to economic downturns than traditional shopping centers.

5. Healthcare and Medical Facilities

Medical office buildings, outpatient centers, and specialty healthcare facilities offer recession-resistant investment opportunities. The healthcare sector continues to grow due to aging populations and increased demand for medical services. DST investors benefit from long-term lease agreements with healthcare providers, ensuring a steady income stream.

Choosing the Right DST Property Investment

Investing in a DST allows for diversification across different property types, reducing risk while maintaining the benefits of a 1031 exchange. Each asset class comes with unique advantages and market considerations, so investors should align their choices with their income goals, risk tolerance, and investment horizon.

Diversify with Institutional-Quality Real Estate Through a DST

DSTs provide investors with access to high-quality real estate assets without the burden of active management. By investing in multifamily, office, industrial, healthcare, and retail properties, investors can enjoy stable cash flow, tax benefits, and long-term growth potential. Understanding the types of properties available in a DST can help investors make informed, strategic decisions that support their financial objectives.

Taking the Next Step in DST Investments

A DST provides real estate investors with an opportunity to own high-quality real estate while benefiting from professional management, passive income, and portfolio diversification. Whether focusing on residential, commercial, or specialized sectors like healthcare and senior housing, DSTs cater to a wide range of investment objectives.

If you're considering DST investments, now is a great time to evaluate your options and create a tax-efficient strategy. Our team is available to help guide you through the process. Schedule a free consultation today to explore how DSTs can align with your financial goals.

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