**Survey Report Reveals Challenges Among Commercial Real Estate Accountants and Tax Experts**
*By Connect CRE Staff*
Behind every commercial real estate transaction lies a foundation of accounting and tax support. According to Agora, a real estate technology company, commercial real estate accounting stands apart from other sectors due to the necessity of managing property-level accounting, investor capital and distributions, and fund operations—all at once.
To gain better insight into the particular challenges of the industry, Agora partnered with Talker Research to conduct a survey of commercial real estate accounting and tax professionals. The findings have been published in the “2026 Real Estate Accounting and Tax Sentiment Report.”
“This survey marks the first time we’ve focused exclusively on accounting and tax sentiment,” said Shepsi Berkowitz, Agora’s Vice President of Financial Products. “As companies shift away from traditional accounting models, recurring issues continue to emerge—such as redundant manual work, scattered data, and limited financial visibility.”
**Stuck in Tradition**
Berkowitz emphasized that one of the key takeaways is the immense effort spent on maintaining financial processes. Survey respondents cited manual workflows as their number one challenge, creating inefficiencies and bottlenecks.
“Firms dedicate a significant amount of time each month to data entry and reconciliation—even when confident in their financial accuracy,” Berkowitz noted. Interestingly, many described their manual processes as “somewhat efficient,” indicating that success is measured more by end results than by the sustainability or scalability of the process. “The industry appears to have adapted to inefficiency rather than pursuing better, long-term solutions.”
**Data and Accuracy (or Lack Thereof)**
Commercial real estate is heavily data-driven. However, the survey revealed considerable issues with data management and accuracy. About 29% of respondents reported inaccuracies in their financial reports, 22% dealt with mismatches in report data across entities, and 20% disclosed a lack of real-time visibility into financial reporting.
These findings didn’t surprise Berkowitz, who cited the inherent complexity of CRE operations—layered entity structures, multiple properties, and varied stakeholder groups. Such complexities often lead to siloed information systems and no unified source of financial truth.
He further explained that mismatched data can stem from the disjointed handling of financial reporting, bookkeeping, and tax preparation. “It’s common for general partners to receive questions about financial data from CPAs or bookkeepers when the relevant information is held by someone else—or even in another system altogether,” Berkowitz said.
**The Impact of Tax Legislation**
The survey also explored reactions to recent tax legislation passed in the previous summer. Results showed that 35% of respondents are actively preparing for the new requirements, while 41% are monitoring developments without initiating any preparatory steps. Another 20% are aware of potential changes but uncertain about their impact.
Berkowitz attributed this hesitation to ambiguity around timing, interpretation, and implementation. Many firms are unclear on how the legislation will apply to ownership structures, tax strategies, or reporting responsibilities.
He also warned of potential delays tied to IRS staffing limitations, possible government shutdowns, and the slower release of updated tax forms. These factors, combined with a traditionally slow pace of change in the CRE industry, can make new regulations feel even more disruptive.
**The Takeaway**
The report concluded that accounting in the commercial real estate sector remains “complex and operationally demanding.” Berkowitz emphasized that while the industry is managing this complexity, it does so with little room for error.
“Accounting teams are holding everything together,” he said, “even as regulatory pressures, investor expectations and portfolio intricacies escalate.”
He added that firms looking to future-proof their operations should focus on reducing manual tasks, maintaining high-quality data throughout the year, and building transparent, scalable accounting systems. Technology should be used to enhance accuracy, while skilled professionals ensure proper oversight.
By adopting these practices, CRE companies can better navigate regulatory challenges and support continued growth.
