The second concept you should understand is why Regus may be reluctant to provide you with proof, even if they actually have it. This is related to what it means that a property is a valid comp. Regus does not describe its contracts as leases, but as something resembling „hospital agreements.“ You don`t rent a Regus office, in other words — that`s the story — your payment for a service Regus calls a „service office.“ For example, about 40% of Regus` revenue comes from „services“ other than the user tax. All group brands, logos and designs appearing on one of the group`s websites are the Group`s exclusive brands and service brands (directly or indirectly). No license or right to these trademarks, logos and designs and other property rights of the Group will be granted or transferred to you. Note in this example clause that there are two methods for determining „the prevailing market price at the time.“ The first is by mutual agreement between the tenant and the lessor, and the second – which is a plan b in the event of the failure of the mutual agreement – is indicated by a procedure in the following paragraph. This site (individually „website“ with the other group sites, „group websites“) is the site of (or is indirectly owned) by Pathway IP S.rl and the content of this site is exclusively determined by Pathway IP S.rl. All materials, including images, details, illustrations, illustrations, symbols, photographs, video clips, text, software, graphics, scripts, logos and other materials that are part of this site (together „content“) are the exclusive property (direct or indirect) of the group and/or its content providers. Content is protected by the group`s copyrights, trademarks, service marks, commercial companies and other intellectual property or intellectual property rights. All rights that are not expressly granted in the Terms and Conditions are reserved for the Group. So in this case (in the screenshot above), we find that once Regus extends your agreement, your rate will increase from $300/month to $720/month.
That`s a 140% increase! It is also 77x CPI rate of 1.8% in this period. „Regus suddenly increases the rent, despite our two-year contract, which sets the rate for the duration of the term.“ For this reason, only other service offices could even be considered comparable real estate. It`s important for two reasons. Second, unlike actual real estate transactions, Serviced Office transactions are not tracked by a central database such as MLS or county ownership records. This makes it virtually impossible for Regus to obtain complete transaction data from one of its competitors for a period of time, reducing the pool of potential comps to regus transactions only. This is where it gets really interesting, because to provide you with real proof of the „predominant market price at the time“ for a Regus office, Regus should essentially provide you with confidential transaction data on other recently leased Regus offices. So in this case (in the screenshot above), we find that once Regus extends your agreement, your rate will increase from $300/month to $720/month. That`s a 140% increase! It is also 77x CPI rate of 1.8% in this period.
Do you think someone would willingly accept a contract that would increase the rent by 140% in the event of a renewal? Of course not.