Commercial Real Estate Still Has a Software Problem

Commercial real estate has a software problem: Implementation can be costly, and there just aren’t enough tools built specifically for CRE, leaving teams to grapple with a patchwork of point solutions that need customization. 

Lev, a Manhattan-based data and workflow platform for commercial real estate, is changing that. Its AI-powered financing platform allows users to create and launch deals, find the best-fit lenders, build marketing materials, and use AI to automate time-consuming financing workflows. That is just the beginning of what Yaakov Zar, founder and CEO of Lev, envisions as the future of software for commercial real estate. 

Instead of just delivering point solutions to make daily tasks easier, Lev is focused on the industry as a whole, and the cultural dynamics slowing transformation and adoption. They have a grounded, collaborative, and long-term vision for what CRE technology should look like.

It started with a personal experience that revealed a need for change. 

“Lev was started in 2019,” said Zar. “I started it after helping a nonprofit I’m close with refinance a building that they had. The financing process was very long and painful and, as a technologist, I thought about how software could be used to automate it. So I started Lev, and initially I thought that the way that we’d go about it would be to fit into the world that was already there, which is brokers helping you get a mortgage. I thought we’d create the best and most efficient brokerage powered by purpose-built software.”

However, it quickly became clear that the market didn’t want another brokerage — they wanted the software itself. So the company shut down the brokerage business and went all in on repurposing their powerful technology for the whole industry, including in-house capital markets teams and financing brokers. Its offerings for investment sales teams are launching in the coming months.  

Lev now has a team of more than 35, mainly in product, engineering and design, and supported by sales and CRE specialists who ensure every new feature released meets the needs of the market. Today, Lev is used by over 100 teams nationwide, who are taking over $3 billion of transactions to market through the platform every month.

Having the experience of running a brokerage meant that the Lev team had a unique understanding of the specific challenges that CRE teams face. They saw firsthand how difficult the implementation of new software can be, especially when relying on a mix of point solutions that aren’t built for CRE and aren’t necessarily designed to work together. They also recognized how difficult it is for in-house teams to build software themselves given the nuances of CRE data and the pace of change, particularly when it comes to AI, which underpins Lev’s entire platform.

“AI models are being updated literally several times a week. There are new products coming out that can affect the fundamentals of the technology. Our team is 100 percent focused on staying on top of that in a way that CRE companies themselves simply can’t be. I think that there’s also a benefit of our knowledge base from a wider perspective, because we understand the best practices of implementing software across organizations of all sizes.”

Zar explained that there are three main components to what Lev offers its customers today, and that these components work together to not only meet business needs, but also solve the software challenges the market faces, starting with adoption.

“The product experience is beautifully designed, very intuitive, modern, and quick to learn. So, customers on an initial demo realize this is what will drive adoption, which is a significant factor,” Zar said.

The first component is the quality of Lev’s data. 

“Our data is a huge driver of adoption today,” Zar explained. “We have proprietary data on more than 7,000 lenders, including what they’re lending on and the right contacts for different types of deals. Customers can quickly see that this data is going to help them get more deals done.” 

The second component is their workflow products that automate time-consuming financing tasks such as setting up deals, managing diligence requests and reporting on deal progress. 

“Software solutions like CRMs or pipeline management tools that are pushed from the top down end up being an enormous time suck for employees,” said Zar. “Employees have to remember to update these tools just so leadership can have visibility into what’s going on across the organization. Lev takes completely the opposite approach. We provide automation tools that employees actually want to use, and those tools then update leadership dashboards without employees lifting a finger. It’s a totally different take on how software is structured.”

Finally, Zar highlighted the implementation process. Onboarding can take as little as 45 minutes for smaller organizations, while Lev also builds out custom implementation plans for enterprise organizations. 

“We hold our customers’ hands throughout the entire process of getting their account set up, getting them onboarded, and having them launch their first deals. They have a dedicated account manager and a ton of resources that ensure that they are set up for success. Customers rave about that.” 

Lev recognizes that many larger organizations have invested significantly in their existing software stacks, and so offers a full suite of customizable integrations into platforms such as Salesforce, Hubspot or custom software.

“Lev can operate as a stand-alone, integrated platform that increases efficiencies and saves companies tens of thousands on software expenses, but we can also integrate with whatever technology companies already use,” commented Zar. “We don’t shy away from offering integrations because we have complete conviction in the power of our core technologies.”

While Lev has been focused on financing workflows, the company is actively working on products that will address the broader CRE transaction process. According to Zar, the company is poised to release its first solutions for investment sales brokers within the coming months. 

“Financing brokers have been pulling us towards developing solutions for other parts of their business, and that ties in perfectly with our long-term vision for the company,” he said. “In Q3, we’ll be releasing a version of our platform specifically designed for investment sales brokers, which will include pipeline management, CRM, and automated creation of BOVs and OMs. Being able to drive adoption across both debt to investment sales teams will create even more operational efficiencies for our customers. We have some select customers using the beta, and feedback has been tremendous.”