Renew, relocate or consolidate: a decision framework

Begin with the decision the business needs to make

Compare renewal, relocation and consolidation over the same period and against the same business needs. Include rent, implementation costs, timing and disruption, and show how reliable each assumption is. The result should explain how each option would work for the business, as well as what it would cost.

Write a one-page brief before building the comparison. State the required capacity, locations served, essential facilities and target operating date. Identify the decision owner and the people who must validate the operational and financial inputs.

Build a dated baseline for the current portfolio

Record the premises in use, current costs, relevant dates and known operating constraints. Separate measured information from estimates. Where utilization varies through the week or year, describe the pattern rather than treating a single observation as representative.

GSA's public guidance on underused space includes evaluating multiple occupancies within a market when considering consolidation. That provides a useful planning perspective: review how locations work together before deciding that a smaller footprint would meet the same operating needs.

Define comparable versions of all three options

Give each scenario a clear scope. Renewal could include changes within the existing space; relocation needs a defined alternative and a transition plan; consolidation needs an explanation of which activities move and where they fit. A scenario based on an unidentified building should remain an illustrative option.

Use the same start date, end date and currency for every option, and treat recurring and one-off costs consistently. Show differences in operating capacity alongside the totals. This makes it clear whether a lower figure reflects savings, less space or a shorter operating period.

• Recurring occupancy costs: rent, service charges, utilities and relevant operating expenses.
• Implementation costs: fit-out, equipment, moving and other identified transition work.
• Timing effects: overlapping occupancy, phased moves and temporary arrangements.
• Offsets: documented contributions or concessions, with their conditions and timing.

Keep operating constraints visible beside the numbers

Agree the essential criteria before reviewing totals. Examples include access, capacity, workforce travel, customer service and a feasible delivery schedule. Record which criteria each option meets, which require further evidence and which would need an accepted compromise.

For a hypothetical comparison, consolidating two facilities might reduce occupied area while increasing travel between a remaining site and customers. Record that operational trade-off directly. A single combined score can obscure it unless the decision team can also inspect the underlying criteria.

Test the assumptions that could change the choice

List the uncertain inputs and who will confirm them. Then vary the most important assumptions individually: a later possession date, a different fit-out estimate or a change in required capacity. Show which changes affect the preferred option and which leave the decision broadly unchanged.

Use supported ranges or clearly labeled working assumptions. Where a range cannot yet be justified, identify the information needed to establish it and the person responsible for obtaining it. Keep that unresolved input visible beside the scenario total.

Prepare a decision brief that can be revisited

Present the options, comparable costs, operating implications, key assumptions and remaining actions together. Record the chosen direction, the reasons for it and any conditions that must be satisfied before proceeding. Give each condition an owner and a date.

Retain the baseline and source references with the decision. When a proposal, requirement or delivery date changes, the team can identify the affected scenario and review its conclusion against the same agreed framework.