Grubb & Ellis Co.'s third quarter industrial report indicates the East Southeast Far submarket, where the port is located, accounts for nearly 90% of all industrial development in the metropolitan area. Across the region, more than 2.5 million sf is under development, mostly build-to-suit and owner-occupied development. Only 494,960 sf of speculative product is under construction. The East Southeast Far submarket has 2.2 million sf of space under construction, says Ariel Guerrero, research services manager with Grubb & Ellis Co. who co-authored the report.

"There's a lot of demand…mostly due to the location and the Port of Houston," Guerrero says. "The east side has the lowest occupancy rate throughout the city at 3%."

The under-construction first phase of the Port of Houston Authority's Bayport Container and Cruise Terminal will create 1,660 feet of extra wharf space and a 65-acre port facility. The $1.2-billion terminal will be built over 20 years, eventually featuring a 7,000-foot wharf and 1,043 acres of port facilities, which is projected to create 39,000 jobs.