PASADENA, TX-A third-party logistics provider has signed a medium-term lease for 436,410 square feet of industrial space at Interport Distribution Center - Building Two. The deal with Jacobson Warehouse Co. Inc. absorbed roughly 10% of the southeast submarket’s vacant space, providing a morale boost for owners in the overbuilt area near the Port of Houston’s container terminals.

During the most recent development cycle, industrial developers overestimated the demand for warehouse space needed to support the Port’s container activity, according to John Talhelm, a senior vice president in Jones Lang LaSalle’s Houston office.

As a result, the southeast submarket became overbuilt as 4.5 million square feet of new, speculative warehouse product flooded the market. At its peak, vacancy rates in the submarket averaged over 18% with minimal lease activity.