DST vs TIC
DSTs (Delaware Statutory Trusts) and TICs (Tenants-in-Common interests) are two structures used to facilitate 1031 exchanges into fractional commercial real estate ownership. DSTs use trust beneficial interests with passive ownership; TICs use direct fractional title with active co-ownership rights.
DSTs and TICs are the two main structures for 1031 exchange investors who want fractional ownership in larger commercial properties. They serve similar economic purposes — fractional CRE ownership with 1031 eligibility — but differ structurally in ways that materially affect investor rights, lender treatment, and operational complexity. DSTs have largely replaced TICs as the dominant 1031 fractional structure post-2008.
DST Structure
Investor holds a beneficial interest in a Delaware Statutory Trust that holds title to the underlying real estate. The DST has a trustee who makes all management decisions; investors are passive beneficiaries with no voting rights or operational involvement. IRS Revenue Ruling 2004-86 established DSTs as eligible for 1031 exchange treatment when structured properly.
TIC Structure
Each investor holds an undivided fractional interest in fee title to the underlying real estate, recorded against the property. Up to 35 TIC owners are permitted under IRS Revenue Procedure 2002-22 safe harbor. All TIC owners must consent to major decisions — sale, refinance, lease modifications above thresholds — creating operational coordination challenges that DST structures avoid.
Why DSTs Dominated Post-2008
Lenders preferred DSTs because the trustee has unified authority — no need to obtain consent from 30+ TIC owners for refinancing or workout. TIC owners frequently could not agree during the 2008-2010 distress cycle, paralyzing lender remedies. DSTs eliminated that coordination problem and became the institutional standard for 1031 fractional offerings.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your DST vs TIC Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — 96% valuation accuracy, 89% workflow automation, and 35-day average disposition timelines vs. the 120-day industry standard. Backed by Linton Global's institutional platform, 500+ active lender relationships, and 15,000+ accredited investors, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is the difference between a DST and a TIC?
DST: investors hold beneficial interests in a Delaware Statutory Trust that owns the real estate; passive ownership with no voting rights. TIC: investors hold direct fractional title to the real estate as tenants-in-common; active co-ownership with consent rights on major decisions. DSTs have largely replaced TICs as the dominant 1031 fractional structure.
Are DSTs and TICs both 1031 eligible?
Yes — both are eligible for 1031 exchange treatment when properly structured. DST eligibility comes from IRS Rev. Rul. 2004-86; TIC eligibility from Rev. Proc. 2002-22 safe harbor. The IRS has expressed no preference between structures, but the market has shifted heavily to DSTs for operational reasons.
Why did DSTs replace TICs?
Lenders preferred DSTs because the unified trustee structure eliminates the coordination problems of 30+ TIC owners needing to consent to refinancing, workout, or sale decisions. TICs caused significant problems during 2008-2010 distress; the market consolidated around DSTs in response.
Can I switch between DST and TIC structures?
Not directly — the structures are legally distinct and switching would generally be a taxable event. Within a 1031 exchange context, the investor can choose either structure (or both, if the structure permits) at the time of investment.
Article Summary
DST vs TIC is a foundational commercial real estate concept that Florida investors, owners, and tenants encounter routinely. DSTs (Delaware Statutory Trusts) and TICs (Tenants-in-Common interests) are two structures used to facilitate 1031 exchanges into fractional commercial real estate ownership. DSTs use trust beneficial interests with passive ownership; TICs use direct fractional title with active co-ownership rights. Michael R. Linton at Linton Global Solutions applies DST vs TIC to every Florida CRE transaction across multifamily, office, industrial, retail, hotels, NNN, distressed, and 1031 exchange execution — backed by 39 years of closed deal experience and REOMind.ai-powered analytics.
Key Takeaways
- ✓DSTs (Delaware Statutory Trusts) and TICs (Tenants-in-Common interests) are two structures used to facilitate 1031 exchanges into fractional commercial real estate ownership. DSTs use trust beneficial interests with passive ownership; TICs use direct fractional title with active co-ownership rights.
- ✓DST vs TIC is relevant across virtually every Florida commercial real estate asset class.
- ✓Florida-specific considerations — insurance, no state income tax, judicial foreclosure, hurricane risk — affect application.
- ✓Michael R. Linton (FL Broker BK703722) has 39 years of Florida CRE transaction experience including this concept.
- ✓Linton Global Solutions combines local market expertise with REOMind.ai's 96% valuation accuracy.
- ✓For deal-specific application, contact Michael directly at (312) 612-1031.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Internal Revenue Service. "Tax Information for Real Estate Investors." IRS, https://www.irs.gov/. Accessed Jun 13, 2026.
- Florida Department of Business and Professional Regulation. "Florida Real Estate Commission." Florida DBPR, https://www.myfloridalicense.com/. Accessed Jun 13, 2026.
- NAIOP Commercial Real Estate Development Association. "NAIOP Research." NAIOP, https://www.naiop.org/. Accessed Jun 13, 2026.
- Urban Land Institute. "ULI Research Library." ULI, https://americas.uli.org/research/. Accessed Jun 13, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Research." MBA, https://www.mba.org/. Accessed Jun 13, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.