Why do TIAA, RREEF, and CenterSquare pay $200–$241/SF for older buildings here?
Because they cannot replicate the asset through development — and they know it. TIAA paid $241.99/SF for Midtown Commerce Center. RREEF/DWS paid $201.72/SF for Princeton Oaks. CenterSquare paid $221.76/SF for Vineland Business Center. In each case, the institutional buyer underwrote a 5.0–5.8% cap rate on stabilized cash flow. That underwriting produces a high per-SF price because the buyer is pricing in two things: (1) there is no new competing supply possible — the land does not exist; and (2) as the Orlando metro grows, demand for urban-core logistics space will compound while supply cannot respond. An asset in permanent scarcity earns a permanent premium.