Southfield, Michigan-based Farbman Group, a Midwest full-service commercial real estate company, has formed a partnership with Otso, a fintech company and tenant-risk expert in commercial real estate offering a multi-year lease insurance program that provides landlords with additional tenant default protection while minimizing cash outlays for tenants.
“We are always looking for new and innovative ways to support our real estate clients, and our partnership with Otso will be a game changer for those looking to lease commercial space with us,” said Andrew Farbman, chief executive officer of Farbman Group. “The partnership allows us to provide creative security deposit options for potential tenants, all while mitigating risk to both parties involved.”
Traditionally, landlords accept letters of credit or cash to lock in security for their outlay on a lease. That can sometimes create a challenge for owners given the up-front cost of leasing space, and for tenants who may be required to have cash held throughout their lease term. Otso provides a win-win scenario for both sides of the leasing equation, allowing Farbman Group to better protect landlords while allowing tenants to hold on to their cash.
Otso’s lease insurance is the first A-rated, multi-year policy for commercial real estate securitization providing a fully digital experience. Decisioning for prospective tenants is powered by Otso’s underwriting technology, which uses over 800 credit factors including exclusive banking history, enabling most applications to get activated in a matter of minutes.