Regus Sued for Back Rent by Woodland Hills Landlord

Younan Properties has sued Regus, the co-working rental agency, alleging that the company owes more than $143,800 in rent which it didn’t pay from January 2022 to March 2023.

Attorneys for Younan filed the complaint in Los Angeles Superior Court for breach of lease and breach of fiduciary duty, and demanded compensation for damages which include payment of unpaid rent, interest and attorneys’ fees.

The attorneys, Daniel Goodkin and Michael Shakouri of Goodkin Law Group, also allege that a Regus LLC which served as a tenant for the building located at 21900 Burbank Boulevard in Woodland Hills transferred its interests to other Regus entities, such as Regus Management Group and U.K.-based parent IWG, so the landlord could not collect back rents.

The lawsuit alleges that the LLC that ran the Woodland Hills office “is a mere shell and naked framework which said defendants Regus Management, IWG and Regus LTD., used as a conduit for the conduct of their personal business, property and affairs,” according to the lawsuit.

A representative for Regus did not reply to a phone call and emailed request for comment by press time.

Regus had leased the entire third floor, or about 32,700 square feet, at 21900 Burbank since October 2007, according to the lawsuit. It vacated the Woodland Hills building earlier this year. The office space rental company also owes Younan Properties $11,543 for damages for a new key system in the space it rented, according to the lawsuit.

Younan Properties owns eight buildings located in Los Angeles and Ventura counties. It runs approximately 20 buildings around United States.

Regus runs separate co-working spaces in the Los Angeles area, which include locations in downtown Los Angeles, Sherman Oaks and Playa Vista, according to an internet search.

This summer, game developer Activision Blizzard filed a countersuit against Regus which claimed that the co-working company had tricked tenants into accepting automatic renewals of prior co-working agreements at “new, grossly, overpriced terms.”

In October 2021, Activision Publishing signed an agreement to use 78 office suites at Regus’ location in Santa Monica, according to court documents. Activision paid a $233,000 monthly fee under the one-year agreement, which lasted through November 2022. The dispute centers on whether an Activision employee accepted a negotiated extension via email.