TheGuarantors’ new offering, Securiti, is changing the way the commercial real estate industry views security deposits. Securiti is an insurance policy that protects office landlords against the risk of tenant default. It’s intended to replace or supplement old-fashioned security deposits, by providing the protection landlords are used to, at a fraction of the cost to tenants. For landlords, Securiti is designed to be as reliable and easy as a letter of credit. For tenants, Securiti is a way to secure their ideal office space without tying up huge amounts of cash. The product is backed by Chubb, the world’s largest publicly traded property and casualty insurance company, and costs only a small annual premium.
Julien Bonneville, CEO of TheGuarantors says, “Securiti is bringing innovation to an aspect of the commercial real estate leasing process that hasn’t seen innovation in nearly 30 years. We’re leveraging our expertise in both real estate and risk to provide a far more efficient solution than traditional cash deposits, or cash collateralized deposits, like letters of credit. Securiti will help businesses unlock liquidity, while keeping landlords safe and sound.”
Securiti is a powerful new tool for profitable middle market firms and high growth companies that place a high premium on their cash. A new lease usually involves a hefty security deposit, but having millions of dollars sit idly with a landlord or bank hardly constitutes an optimal use of capital. Enter Securiti: for just a fraction of the cost, tenants can deliver a security package to their landlord without locking up their growth capital for years to come.
Top commercial landlords, like Silverstein Properties–who recently incorporated Securiti into one of their newest leases at the Class A World Trade Center properties–are beginning to warm to the innovation, as well. Insurance does not generally enjoy the same reputation for reliability as a letter of credit or cash, which is why TheGuarantors designed Securiti with extensive collaboration and feedback from landlords to make sure it satisfied their security deposit requirements. With that hurdle cleared, landlords are eager to embrace new ways to streamline the leasing process and provide value to their tenants. Landlords are very aware that the commercial leasing landscape is changing rapidly, and they need to stay ahead of the curve when it comes to meeting the needs of their innovation-driven tenants. Silverstein Properties, for its part, has embraced a tenant-first approach to leasing, including a willingness and ability to innovate, and support for fintech, as a key element of its strategy to attract growth companies to its famous World Trade Center properties.
Jeremy Moss, EVP and Director of Leasing of Silverstein Properties notes, “We are always looking for ways to improve the office leasing process and attract tenants. With Securiti, we can now offer a flexible and financially efficient alternative to traditional letters of credit without compromising our risk and credit standards.”
Real estate is a traditionally conservative industry that does not easily change its behavior, especially with respect to something as fundamental as security deposit. TheGuarantors is well-aware of the challenge, but is confident that the product speaks for itself.
Kevin Chin, VP and Head of Securiti points out, “Securiti makes the security package cheaper and easier to buy. It gives landlords the protection they need at a fraction of the cost to tenants–it’s a win-win for landlords, tenants, brokers and anyone else invested in the leasing process. Securiti will make traditional, capital-intensive security deposits things of the past.”