The restaurant operator, armed with a long-term lease, got the keys Dec. 1 to the entire top floor of the six-story, class B building, says Louis Rosenthal, leasing director of Jones Lang LaSalle Inc., who represented the building owner, Northwest Building Ltd., in the transaction. He tells GlobeSt.com that Luby's was looking for a location with access to both George Bush Intercontinental Airport and Houston Hobby Airport.
Luby's relocated from 2211 Northeast Loop 410, a 42,000-sf building in San Antonio. "Some of Luby's larger shareholders are in Houston and they have a large presence in Houston so it made sense for them to be here," Rosenthal says.
Luby's opened its first cafeteria in 1947 in San Antonio, where it now operates 15 restaurants and employs more than 800 people. The first Houston location opened in 1965, but it's also Luby's largest market with 40 restaurants and is home to its centralized facilities service center, which manages the restaurant assets and oversees all repairs and maintenance, equipment upgrades, construction and all other asset management responsibilities.
Rosenthal says most of Luby's senior management and more than 50 non-restaurant employees already were in Houston before the headquarters relocation. Luby's executives expect to gain increased efficiency and productivity by bringing everyone together in one city.
"We had some space in the building that was large enough to accommodate them all on one floor," Rosenthal says about the 75-member corporate staff. "They didn't have to gut and redo it--it already had some improvements that they could take advantage of." Built in 1981, the 156,000-sf office building is 84% leased. The asking rate ranges from $15.50 per sf to $16.50 per sf. Luby's was represented by Andrew Spence of Cushman & Wakefield of Texas Inc. and Dan Quinlan of Houston-based Dan Quinlan & Co.
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