[RPPTL LandTen] Accelaration Clauses - What's up with that?

[Frank, Scott A.]

Doing a large number of retail leases, this is something I have had to
deal with for national credit tenants for quite a while.  And the truth
of the matter is, with the big players, we almost always give in.
 
But you are right in that a larger number of smaller, less credit-worthy
tenants are asking for it more these days.  I have given in some times,
and not others.  A few compromises I have used (representing both
landlords and tenants) is the reduction to present value/offsetting
against market value; inserting a liquidated damages clause in its stead
(anywhere from 3-12 months rent depending on what the market could
justify); and bumping up security deposits to offset the losses.  I also
am careful to advise landlords of their need to stay on top of
defaulting tenants and of how they will need to proceed in the future in
the event of a default - i.e., pay my litigation partners lots of money
to go after ongoing defaults.  But again you are right in that landlords
today just want filled space, and are often willing to risk that the
space may be empty again in 9 months without fully adequate remedies
against the tenant - but I tell them and let them decide.
 
 
 
Scott A Frank
Attorney at Law
ARNSTEIN & LEHR LLP 
www.arnstein.com <http://www.arnstein.com/> 
 
515 North Flagler Drive 
Sixth Floor 
West Palm Beach, Florida 33401-4323
Phone: 561.833.9800 
Fax: 561.655.5551

433 Plaza Real
Suite 275
Boca Raton, Florida 33401-4323 
Phone: 561.962.4145
Fax: 561.962.4245 
SAFrank at arnstein.com <mailto:SAFrank at arnstein.com> 

Offices in Illinois, Florida, and Wisconsin 
 

________________________________

From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of George
Pincus
Sent: Tuesday, February 23, 2010 2:38 PM
To: RPPTL Landlord Tenant Committee
Subject: [RPPTL LandTen] Accelaration Clauses - What's up with that?



Is it just me or is every tenant on the planet trying to negotiate
acceleration clauses out of leases?

 

How are you responding to this in this tenant oriented market?  

 

What are you saying to your landlord clients when they look at you and
say "I need to plug the whole in my building, I don't care what the
tenant is asking for - get this deal done ", knowing that someday they
will come back and say to you "how could you let me sign a lease without
an acceleration clause in the remedies section?"

 

I am dealing with this every day, so I am interested in how other people
are responding to this issue. 

 

Thanks.

 

George A. Pincus, Esq.

Shareholder

Stearns Weaver Miller Weissler

  Alhadeff & Sitterson, P.A.

New River Center, Suite 2100

200 East Las Olas Boulevard

Ft. Lauderdale, FL 33301

Telephone: 954-766-9705

Facsimile:    954-766-9719

E-mail: gpincus at stearnsweaver.com <mailto:gpincus at swmwas.com> 

www.stearnsweaver.com

 

 


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