Actually, not even empty space was there. God exists outside of space and time; even those were created by Him. 

I agree with the last post that God created the heaven and the earth (indeed the universe) from NOTHING.

Absolute nothingness is a state I believe we as humans cannot fully comprehend.

Therefore, only God can create SOMETHING from NOTHING and that my friend, is a beautiful thing! 

The Bible describes God's creation as formless, empty, and covered with darkness. Gen. 1:2. At that time the universe and the world did not have the order form it has now. It was empty, barren of all living creatures, and void of all life. After this initial stage God created light to dispel the darkness. Gen. 1:3-5. And God gave form to the universe. Gen. 1:6-13. And filled the earth with living things. Gen 1:20-28 

I found this in the JFB commentary with regards to the word created:

created--not formed from any pre-existing materials, but made out of nothing.

I'm not really sure what the answer is, but that is one interpretation of the word. JFB commentary tries to explain the bible from the interpretation of the original language (Hebrew in this case).