just my .02 would be to go with a wharehouse space, that's what I did and what keeps my little studio busy are the good drum sounds (and the 2" tape). We signed a 5 year lease, and spent the first 3 months building it out.
The tracking room is roughly 20x30 with 14 ft. ceilings. Most of our accoustic treatments are DIY. Wrapping rockwool in burlap, hanging thick, soft carpet pad from the ceiling along one side, and I think there's a total of about 10 pieces of real "studio" foam in there. The drums (90% of the time) are on a wood stage that sits about a foot off the floor and is totally filled with scrap foam we got for dirt cheap.
It's not a perfectly tuned room by any stretch of the imagination, but we get some pretty nice, big drum sounds in there. We're currently building a little vocal booth/dead drum room that's shaped like an egg on the inside and will be super dead using soundboard along the curved walls, a few layers of carpet pad on the ceiling and a couple peices of rockwool wrapped in burlap.