Commercial Lease - Purchase $1 - 1250 Property
I own a 100,000 sq.ft. commercial property that I am considering offering a 10 year lease-purchase with a $1 option at the end.
Is this treated as an installment sale by the IRS so that 1250 re-capture is due each year on the lease payments received? 
I would say yes, this is an installment sale. It is my impression that section 1250 recapture is accomplished as a lump sum in the year of the sale, even if installment sale tax treatment is used
Consult a tax professional licensed in your state for specific details.