Also know as rent acceleration clauses, many commercial leases allow a landlord to accelerate the payment of rents upon a tenant’s default. The problem is that, like most provisions in leases, not all lease acceleration clauses are created equal. Furthermore, lease acceleration clauses are often highly regulated or limited, depending upon the state that the premises are located. Some states specifically, by statute allow for a landlord to accelerate rents upon the tenant’s default and others may simply leave it up to the parties to agree or not, to a rent acceleration clause.
Our featured guest is a noted attorney, John G. Kelly, a Partner with the firm of Bean Kinney & Korman, PC, with offices in Virginia, Maryland and Washington, DC. John has taken the time and effort to analyze some of the most significant cases relating to lease acceleration clauses in prominent states, including:
As part of the discussion, we will also discuss strategies that both the landlord and tenant can employ when drafting the lease acceleration clause.
John G. Kelly
Partner, Bean Kinney & Korman PC
John Kelly is a shareholder of Bean, Kinney & Korman and focuses his practice on general corporate law and real property law, including commercial real estate financing, acquisitions, sales and leasing, and mergers and acquisitions.
John represents sellers, lenders and developers in connection with real estate investments throughout Virginia and Maryland. These transactions involve the construction and development of office buildings, shopping centers, hotels, and other investment-grade properties, including negotiating agreements and the review of due diligence on behalf of both lenders and purchasers
With respect to leasing, John represents both landlords and tenants nationwide in substantial office, retail, industrial and government leasing transactions. His lending experience includes representing both lenders and borrowers in complex financial transactions secured by real or personal property, including the negotiation of the initial loan documents and advising with respect to workout strategies and foreclosures.
John also has extensive experience with respect to representing both property owners and telecommunication providers in connection with the drafting and negotiation of antenna tower leases and license agreements on a nationwide basis.
John’s sales and acquisition experience includes the representation of sellers and purchasers of large office properties, hotels and undeveloped land throughout Virginia, Maryland and Washington, D.C.
With respect to general corporate law, John serves as outside general counsel for many mid-size local businesses. John also represents business buyers and sellers in connection with sophisticated asset purchase and stock purchase transactions as part of the firm’s mergers and acquisitions practice group.
Before joining the firm as a shareholder, John was an associate with the international law firms Holland & Knight, LLP and then Reed Smith, LP.
Train photo by ‘Discovery 2008’ on Flickr (CC BY 2.0)