It's next to LAX as well, not to mention Chevron and the water treatment facility.

Use your best discretion to decide which method is appropriate.I would approach this from the fair treatment that both tenants deserve. 

There's a glut of office and medical coming within a 1 mile radius of my property and it makes sense to go another direction.Based on the demographics and needs of the area, restaurants are sorely needed, but we also have ZERO facilities for kids and their families in town.

It's actually a better fit with the Brrrr thing.Property that qualifies for 1031 treatment is property you have purchased with the intent of holding for productive use. 

I, as I am sure you have, have had many people tell me things like "I'm going to be an API inspector like you" or "Ill come lift with you at the gym too" or "I definitely want to learn martial arts from you" and they may show up a time or 2 but then soreness kicks in or they find out how hard it is and I never see them again.

To determine the treatment of section 1231 gains and losses, combine all your section 1231 gains and losses for the year.If you have a net section 1231 loss, it is ordinary loss.If you have a net section 1231 gain, it is ordinary income up to the amount of your nonrecaptured section 1231 losses from previous years.

@Patrick Michaels there’s a water treatment plant near there on river road, I’m sure you know the one.

Environmental Protection Agency (EPA) or state-certified lead-safe renovation contractor must beused for the painting work; machine sanding and use of propane or gasoline torches (open-flame methods) are not permitted, and just washing and repainting withoutthorough removal or covering with siding does not constitute adequate treatment. 

I've seen family members and friend get sick and nobody can afford to pay for medical treatments or hospice care.

Whether you provide substantial service and how long your average stay is will both come into play with the tax treatment on this property.