I would think the answer to this revolves around one's tolerance to risk and other related factors.

And as they old saying goes, "You get what you tolerate". 

Marijuana and other illegal stuff, should not be tolerated. 

Since you are in a state that apparently doesn't limit security deposits, it might be worth the risk if they are willing to pay the higher deposit, but I would make sure they understand what jointly and severally liable means and stress that you do not tolerate late rent payments.  

Personally, I feel the #1 red flag is if the agent forcing their insurance guidelines on you before they learn what your risk tolerance is. 

I own a property in a similar area and it's not my favorite but it cash flows $250/door so I can tolerate it.

Both viewpoints can be valid, the key is to analyze your own investor situation, needs, and risk tolerance.

Maybe a bit hard to say "better" unless one knows more on risk tolerances, dev plans, goals, etc.Some stores may be open to a NNN lease depending on dev plans.

So it all depends on your tolerance for dealing with tenants, on your time horizon and on the plan for the property.

All depends on criteria you're looking for & risk tolerance