Shutterfly renewed and expanded its headquarters lease for 100,676 square feet of space at Bayshore Tech Park in Redwood City, California. The Internet-based personal publishing service has signed a 7-year lease, commencing immediately, to fully occupy the two buildings at 2800 Bridge Parkway and 3000 Bridge Parkway, increasing their space by 25 percent.
Shutterfly was represented by Steve Barker, executive vice president, and Matt Hart, corporate managing director, with global tenant advisory firm Studley.
The publishing firm hired Studley in 2007 to analyze its growth needs and overall occupancy strategy going forward. After assessing the marketplace, Studley advised Shutterfly to execute a series of short-term expansion opportunities to bridge their growth needs, rather than commit to a long-term renewal or relocation. “Our market research and analysis indicated that rents during this period were grossly inflated and we anticipated a severe market correction to bring rates in alignment with market reality,” said Hart. “Once our prediction of a correction began to materialize, we started exploring Shutterfly’s long-term options in earnest.”
“Clearly, Shutterfly has a significant presence in Redwood City and the Bay Area, and is a highly sought after credit tenant. On behalf of Shutterfly, we proactively and creatively pursued all viable opportunities, including numerous alternatives in San Mateo County, before recommitting to Bayshore Tech,” added Barker. “Working with the existing landlord, we were able to structure a transaction that was economically compelling and operationally flexible for our client. Ownership benefitted by not only securing its anchor tenant into the future but doing so for the entire project.”
Cassidy Turley BT Commercial represented the building ownership, Prudential Real Estate Management and Harvest Properties.
At the core of its mission as a commercial real estate services firm specializing in tenant representation, Studley analyzes transactions and markets, studies supply and demand, and works on behalf of the tenant only. In many cases, Studley’s transactional negotiating points shape the market. They are constantly developing innovative pro-tenant provisions in an effort to create industry standards for office space lease negotiations.
About Shutterfly. Shutterfly is a leading Internet-based social expression and personal publishing service that enables consumers to share, print and preserve their memories by leveraging our technology-based platform and manufacturing processes. Today, the primary focus is on helping consumers manage their memories through the powerful medium of photos. Shutterfly provides a full range of products and services that make it easy, convenient and fun for consumers to upload, edit, enhance, organize, find, share, create, print and preserve their digital photos in a creative and thoughtful manner.