traffic, noise.....I stay away from it...

He moved from one site where he stayed for a few months, then to my other site. 

Is it better to do a small increase and increase my chances of them staying?

If you're ever in the area shoot me an PM and I'm glad to grab some coffee and share what knowledge and experience I have.

He’s out of state so I cant just go meet him He seems very knowledgeable about real estate but I don’t want to be burned tying up a property and potentially losing my deposit and the deal.

The money you put into a house that is bleeding, isn't lost unless you stay with that house. 

The other thing to keep in mind is to be very careful with the owner staying for six additional months.

The sellers also have their eyes in the sky in regards to pricing because they believe that the commercial aspect is enough to raise the price, even though the land is outside the development currently.Does anyone have any advice, tips, or knowledge on the subject?

My final note:  I would stay away from both asset classes (self storage and light industrial) in less populated areas. 

Life is all about your outlook so I have to stay positive.