I had recently learned this technique in Illustrator to overlap type. I am going to break down the steps to achieve this effect.

1. Type your text. Adjust the size and font to your liking.

2. Kern your letters so they are slightly overlapping.

3. Convert your type to outlines. Type>Convert to Outlines

4. Select the type. Object>Path>Offset Path

5. Offset the Path to how thick you want the gaps between letters. (I recommend using the Preview button).

6. Select both layers and click on the “Shape Builder” tool. Using the {Option} button to start removing the path the was offset. Creating the Overlapping Effect.