Shutterfly's Regional HQ Heads to Cotton Center

The asking rates for space similar to that in the 805,639-sf park, owned by Liberty Property Trust, ranges from 55 cents per sf to 65 cents per sf, triple net. John DiVall, Liberty Property's vice president and city manager for Arizona, tells GlobeSt.com that Shutterfly's lease included three months of free rent at 4410 E. Cotton Center Blvd. The Redwood City, CA-based Shutterfly will open doors in March 2009.

Representing Shutterfly in the lease negotiations were senior director John Hanson and associate director Matt McGregor, both in the Seattle office of Cushman & Wakefield of Washington Inc., and senior directors Mark Detmer and Bo Mills with Cushman & Wakefield of Arizona Inc. in Phoenix. Robert Crum, principal with locally based Ross Brown Partners and Mark Krison, senior vice president in CB Richard Ellis' local office, represented the property owner.

DiVall says Shutterfly's building was the last of the available space for lease when the Malvern, PA-based Liberty acquired Cotton Center. "All we have left to lease are two buildings, totaling 120,000 sf, that we just finished," he says. He adds that a lease should be signed by the end of September for one of the two spec buildings.

With available space dwindling at Cotton Center, DiVall says Liberty will need to build more product. "We need to have product always available there," he adds. "Whether that ends up breaking ground this year will depend on what happens within the next month."