As with all real estate the location and the current market with-in that location are the largest contributing factors to determining lease versus selling. Elementary speaking, the future value of the land is the main contributor, is the property an infill near the central business district of Austin, TX versus Detroit MI ? Obviously Austin has a population & job growth with strong educated work force versus Detroit. Land prices near the cbd of Austin are still appreciating, I would say lease.
The other determination would be the quality of the tenant and the quality an feasibility of their development. If they build an auto part store or a restraunt that goes out of business is the building alterable with out causing a functional obsolete building for other potential users. If the tenant is a CVS, Walgreens, Chicken Express etc, national credit tenants make the difference.
You as the seller or landlord have an inert taxable circumstance as well to consider. Will the sell cause you havic on your tax burden?
You can always discount the future values of both scenarios as compared to your tax situation and personal needs.
Wishing you the best!
Barry L Marotz, CCIM
Dec 29, 2009