1031 vs cash out refi

[Mark Cohen]

I am helping to do research for a friend of mine who has a commercial building worth now around 1 million more now then when it was bought 10 years ago.  He wants to 1031 it and diversify into 2 or 3 other buildings ( cap rates have skyrocketed  to 6 % in the area). I thought a more cautious approach would  be to refi out.  He has around 900 k of equity in the building. So which approach would you take?