Activision Was In Discussion For An Extension When Hit With Rent Hike
IWG subsidiary Regus is suing Activision Publishing, claiming the video game company owes $2.1 million in fees for Regus’ coworking space at the Santa Monica Water Garden office complex as reported by The Real Deal.com. According to the lawsuit, Activision signed an agreement in October 2021 to use 78 office suites at Regus’ location at 2450 Colorado Avenue for a monthly fee of $233,000.
The one-year deal lasted through November 2022 but was renewed through February 2023 for a monthly base fee of $254,000. Activision was reportedly in discussions for an additional three-month extension when Regus offered an “exorbitant rent hike” during lease extension negotiations.
Regus claimed that Activision breached the agreement by failing to pay the entire amount owed for the six-month license term and repudiating the agreement. Activision alleges that Regus owes it hundreds of thousands of dollars. The dispute comes as JPMorgan, the owner of the Santa Monica Water Garden, is seeking $1.4 billion for the 1.4 million-square-foot office campus.