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HOUSTON-Increased demand in Houston’s far southeast submarket has led to some amazingly low Q2 vacancies for the industrial sector. The most recent adrenalin shot is a 167,244-sf lease by Duke Energy Equipment Partners LP for the Bayport Industrial Complex.

A preliminary second-quarter report puts warehouse/distribution vacancy at 1.2% and manufacturing at 3.1% in the far southeast, according to the Houston office of Cushman & Wakefield of Texas Inc. John F. Littman of Cushman & Wakefield tells GlobeSt.com that the low vacancies of the popular “petroplex” are due to the minimal amount of construction in recent years. The area traditionally has been home to the petrochemical, oil and gas processing plants. But, its heavy industrial persona has changed as more diverse users set up shop in the submarket.

Littman and Cushman & Wakefield broker B. Kelley Parker structured the deal on behalf of building owner Mark E. Johnson. Duke got the keys to the 20-year-old warehouse that once housed the Graver Co.’s manufacturing operations. The 19-acre property will be used for a new operation that Duke is prepping to unveil. George Jones and Michael Palmer, both of the Houston office of CB Richard Ellis Inc., represented Duke Energy in the lease.

The Charlotte, NC-based Duke touts itself as a diversified multinational energy company, with an energy asset and expertise portfolio that includes natural gas and electric supply, delivery and trading. The Bayport Industrial Complex encompasses several thousand acres and is a deed-restricted development in the southeast Houston/Bayport area.

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