@Youssef LabibI’m bullish on the DFW due to massive population growth indefinitely.

Assuming you still need a place to live and don't want to rent indefinitely, Option 2 could be a good fit if you are interested in trading up to a bigger and better primary residence that you think will appreciate over time, buying a multifamily property, or using your equity to purchase multiple cheaper properties and living in one while renting others out.

Does the company offering the 50+ year leases agree to pay the current building owner a certain rent amount for 50 years for the rights indefinitely?

Month to month is essentially indefinite in NJ. 

This indefinitely defers all tax and depreciation recapture.Outside the exchagne they now own a note which they paid face value for. 

@Jason Ramage- I would be holding indefinitely.

I’m looking for indefinite hold and making long term stakes in the city.

This recapture tax can be postponed indefinitely by not selling the property, or selling the property under a 1031 exchange and keep postponing, and repostponing the tax until you eventually die at which time this tax debt effectively dies with you and goes away entirely.

Add to that a fee of $1000 or less for a 1031 exchange so you can indefinitely defer the tax and you've got a recipe for a winning transaction. 

Do I lease option it or rent it indefinitely?