"Rent Set Off" provision can protect tenants and brokers in this market. 

 12/15/2009 

Excerpt from Crains Detroit Business article published January 13, 2009

On the tenant side of the brokerage business, more leases are being structured with a proactive measure called a “rent set-off,” said Bill Lichwalla, CEO of Plante Moran Cresa L.L.C.

Under a rent set-off, the broker who represents a tenant has a sort-of Plan B structured in the lease, through which the tenant can withhold a percentage of rent over a period of time to pay the broker if he or she is not paid up front.

Lichwalla said the rent set-off also is used for tenants to protect the money they are owed for improvements to their leased space.

“Five years ago, a rent set-off would be rare to see,” he said. “Today, I'd say it's in half of them. As a tenant representative and even a tenant, you have to protect yourself. This is the safest way to do it.”

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