Regus review: Virtual office service

I wanted to share my experience that I had with Regus. I started a virtual office service on Nov 1st, 2016 at their Knightsbridge location at Piscataway, NJ. I signed up for a two-year contract for a monthly payment of $65.00. I requested them to sign me up for the automatic payment of my monthly bills.

On Nov 1st, 2017 they increased my monthly payment to $67.60(4% increase from $65 to $67.60) without any notice.

On Nov 1st, 2018 they auto-renewed my contract and increased my monthly payment to $85.00 (26% increase from $67.60 to $85.00).

I would like to point out if you read their "Virtual office house rule" document under section 28 "Annual Indexation" it clearly states that rent increase should be CPI(Consumer price index) or 4% whichever is greater. CPI in 2017 was less than 3%.

I reached out to their office manager in March 2019 and asked them to cancel my contract. They refused to cancel and told me that I have a contract with them till Oct 31st, 2020. I sued Regus in the small claims court in Middlesex County, NJ and came out of the contract. I hope my experience helps other business owners who are stuck with them.

A point to note this company Regus systematically breaks the contract by raising the payment more than 4% annually without any tenant authorization and they increase the payment at will. Also, there is a clause in the Regus contract "Agreement to Arbitrate: Class action Waiver" which protects Regus against a class-action lawsuit from the fraud they are committing.

I would recommend my fellow business owners to stay away from this company Regus.