Well, cap rate analysis is one, and commercial real estate is driven by this. Say you go for anything but want it leased fast. Maybe you get $2000/mo. Say you

Well, cap rate analysis is one, and commercial real estate is driven by this. Say you go for anything but want it leased fast. Maybe you get $2000/mo. Say you wait for a higher paying entity but it takes a year but you get $3000/mo. Depends on what you optimize for. The naive person would calc how long it would take to the total cash break even. And in particular look at the loss of $24k that first year! But if they want to sell at 1.5yr from start date? The 2k/mo option at a 4% cap is 600k. The 3k option delivers 900k, but subtract the 24k and you still get $276k more.