**Survey Report Reveals Challenges Among Commercial Real Estate Accountants and Tax Experts**
*By Connect CRE Staff*
*Shepsi Berkowitz*
Behind every commercial real estate (CRE) action lies a robust framework of accounting and taxation. According to real estate technology firm Agora, commercial real estate accounting stands apart from other sectors due to its need to simultaneously manage property-level accounting, investor capital and distributions, and overall fund operations.
To better understand the industry’s unique financial challenges, Agora partnered with Talker Research to survey accounting and tax professionals across the CRE space. The result: the newly published “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, Vice President of Financial Products at Agora. He emphasized recurring challenges as companies transition from traditional accounting models, including heavy manual workloads, fragmented data systems, and limited financial visibility—challenges that only grow as companies scale.
### Stuck in Tradition
Berkowitz highlighted the widespread inefficiencies in today’s CRE accounting landscape. The research found that the biggest pain point for firms remains the heavy reliance on manual processes. These methods create costly delays and bottlenecks, even in firms confident in the overall accuracy of their financials.
According to the report, many survey participants characterized their manual processes as “somewhat efficient”—a term signaling that while numbers may be accurate, the processes to get there are unsustainable. “I think the findings point to an industry that has adapted to inefficiency instead of questioning whether there’s a better way,” said Berkowitz.
### Data and Accuracy—or Lack Thereof
Accuracy and data consistency are critical for the capital-intensive and complex world of commercial real estate. Yet, according to the survey:
– 29% of respondents reported issues with report accuracy.
– 22% cited mismatched data across reports and entities.
– 20% said they lack real-time visibility into their financial reporting.
These statistics reflect the fragmented nature of financial data in CRE, especially in firms managing multiple properties and investor groups. Berkowitz explained that financial information, bookkeeping, and tax reporting often live in siloed systems, with no unified “source of truth.” It’s not unusual for general partners (GPs) to face data requests from their CPAs for information that resides elsewhere—in separate systems or with different service providers.
### New Tax Legislation Looms
Respondents were also asked about the impact of recently passed tax legislation. Findings show a varied response:
– 35% of firms are actively preparing for new tax requirements.
– 41% are monitoring developments without taking specific action.
– 20% are aware of the changes but unclear on their potential impact.
Berkowitz pointed out that the uncertainty surrounding recent tax policy is a product of vague implementation timelines and complicated reporting implications. Many real estate firms aren’t sure how the new laws will affect their ownership structures, tax strategies, or required documentation.
Additional delays are also expected in tax reporting due to IRS staffing shortages, the potential for government shutdowns, and delays in updated tax forms.
### Industry Hesitance to Modernize
The commercial real estate sector’s longstanding reliance on traditional accounting practices has slowed its adaptation to modern regulatory and technological change. As a result, even moderate policy shifts can feel disruptive. “That makes regulatory shifts feel more disruptive than they might in other sectors, especially when firms are already managing complex structures and rigid workflows,” noted Berkowitz.
### The Takeaway
The 2026 report concluded that commercial real estate accounting remains highly complex and demanding. “The industry is managing complexity, but it’s doing so with very little margin for error,” Berkowitz said. He emphasized that many accounting teams are holding operations together under increasing pressure from regulation, investor expectations, and growing portfolios.
To remain future-ready, Berkowitz recommended that firms reduce manual effort, maintain clean, consistent data year-round, and invest in scalable, transparent accounting mechanisms. “Technology should enable accuracy,” he said, “while experienced professionals continue to lead efforts with oversight and strategic insight.”
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