This is a pretty good step in the correct direction. 

He said he would move out by the first of next month but demanded I give him his security deposit back, in full, right now.

We only own 1 duplex where we've directly encountered this same decision set.Broadly I think you've summarized your options correctly. 

I have a residential building 3 units that I want to rent directly to a business, does anyone know if I can just give them a commercial NNN lease?

Also, consider that even if your properties take little damage in a direct hit area the city will basically be out of commission for 12-24 months.

@Kevin Drouillard here are some ideas:- First month free so they pay security deposit, transfer utilities and move in.

Just direct message me your contact information or call the main number on our website - nreig.com.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

I would offer them double their current rent amount, so they have enough to cover a new deposit and have some play money - which is the incentive.

Can some one give me some direction please.