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  • Writer's pictureTanya S Osensky

How I Help: Commercial Leases and the Acceleration Clause

Christopher is a long-term business client and over the years, I have stressed to him the importance of knowing what you are signing before you sign it. So he knew to have me review his office lease prior to signing.

I reviewed the entire lease, but there are several provisions that I pay special attention to. One important one to watch out for is an acceleration clause. This clause allows the landlord to claim all amounts due under the lease through the end of the term immediately upon a default.

As an example, not maintaining proper insurance is considered a default, triggering the requirement to pay all future rents immediately if the insurance coverage lapses.

This and many other terms that seem “standard” can be negotiated prior to signing. There really is no such thing as "standard" in a commercial lease these days!

If you've outgrown your current office space and your landlord offered the suite next door with a brand new lease, consider this: do you like surprises? There are many potential gotchas in a commercial lease that you will want to know about before signing.

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