Behind every commercial real estate action lies accounting and taxation support. According to real estate technology company Agora, “commercial real estate accounting is distinct from other sectors because firms must simultaneously manage property-level accounting, investor capital and distributions, and fund operations.”

In an attempt to understand such challenges, Agora joined forces with Talker Research to survey commercial real estate accounting and tax experts, resulting 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. He told Connect CRE that as companies move from more traditional accounting models, “recurring issues keep popping up, like dealing with a lot of manual work, fragmented data, and limited visibility as companies grow.”

Stuck in Tradition

Berkowitz noted that the amount of effort invested in maintaining financial processes was one issue that stood out. Those surveyed indicated that their top issue involves manual work, creating bottlenecks and slowdowns. “Firms spend a significant amount of time each month on data entry and reconciliation, even when they are confident in the accuracy of their financials,” Berkowitz said.

Additionally, survey participants described their manual attempts as “somewhat efficient.” Berkowitz explained that such a response means success is measured by whether numbers are eventually correct, rather than the process’ sustainability. “I think that the findings point to an industry that has adapted to inefficiency instead of questioning whether there’s a better way to do things,” he added.

Data and Accuracy (or Not)

Commercial real estate is an industry that relies on data. Unfortunately, when it comes to accounting and taxes, the survey stated that 29% reported accuracy problems in their reports, 22% noted they deal with mismatched data across reports and entities, while 20% said they “lack real-time visibility into financial reporting.”

This result didn’t surprise Berkowitz, who pointed out that CRE firms come with various and layered entity structures, multiple properties and many stakeholder groups. As a result, “financial data is often spread across disconnected systems, with no single source of truth,” he said.

Berkowitz explained that one source of mismatched data is the separation of financial information, bookkeeping reports, and tax work across different sources. ”It’s very common for GPs to receive questions from their CPA or bookkeeper on financial data, while the details needed to answer those questions sit with other bookkeepers and CPAs, or another system of record,” he added.

Then, There’s the Tax Act

When queried about the passage of last summer’s tax bill, 35% of respondents indicated they’re actively preparing for new requirements, while 41% continue monitoring developments without acting. Meanwhile, 20% are aware of pending changes but are unclear about the legislation’s impact.

Berkowitz said that the bill’s uncertainty has been driven by timing, interpretation, and implementation, with many firms unsure how provisions might apply to ownership structures, reporting requirements, and tax strategies.

Others anticipate tax reporting delays because of “IRS staffing constraints, potential government shutdowns, and slower issuance of updated tax forms,” he added.

Furthermore, the commercial real estate industry is mired in tradition, resulting in slow changes to accounting and tax practices. “That makes regulatory shifts feel more disruptive than they might in other sectors, especially when firms are already managing complex structures and rigid workflows,” Berkowitz said.

The Takeaway

The report concluded by suggesting that industry accounting remains “complex and operationally demanding.” Furthermore, “the industry is managing complexity, but it’s doing so with very little margin for error,” Berkowitz said. “Accounting teams are holding things together, even as regulatory pressure, investor expectations and portfolio complexity continue to rise.”

He suggested that firms positioned for the future are those that can reduce manual effort and maintain clean data year-round. “They should also build accounting operations that are transparent and scalable, with technology supporting accuracy and experienced professionals maintaining oversight,” Berkowitz added.