OCCUPANCY TRANSITION STRATEGY · CANADARenew the premises?
Renew the premises?
Or fund the move?
Compare the full renewal and relocation paths after lease economics, construction capital, included parking or equipment, custom operating costs, overlap, moving, old-space restoration and business disruption—then inspect the dollarized pros and cons.
01 · COMMON DECISION FRAME
Put both occupancy paths on one horizon.
The opening scenario is illustrative—not market data. Replace every lease, capital and operating assumption with evidence for the actual renewal and relocation alternatives.
PREFILLED DECISION TEMPLATESLoad the whole pair: leases, inclusions, capital, overlap and transition.
Industrial stay-versus-expand template loaded · every value is illustrative.02 · TRANSITION COST STACK
Price the change, not just the new rent.
Lease economics and transition economics stay separate so allowances, capital, overlap and operational disruption cannot quietly disappear into one blended number.
03 · DECISION READOUT
See what the move has to overcome.
The lower entered result is arithmetic—not a recommendation. Building fit, labour access, operational resilience, option validity and execution risk remain separate decisions.
PV DIFFERENCE · RELOCATION MINUS RENEWAL+ $1,221,818Renewal is lower PV
DOLLARIZED PROS & CONS
See why each path wins or loses—not just which total is lower.
Included values are entered replacement-value assumptions. They are not landlord cash contributions and do not prove that a right survives into the final lease.
Lower entered present value
$1,221,818Difference from relocation after all entered lease, custom and transition assumptions.
TI, free rent and landlord contributions
$406,667Entered lease incentive package; source terms and payment conditions still control.
Included-item replacement value
$294,000User-entered comparison value for parking, furniture, yard, storage or other inclusions.
Renewal transition cost
$87,000Advisory, temporary operations, other costs and entered business disruption.
Tenant project capital
$420,000Entered tenant-funded capital before tax, financing and timing effects.
Present-value premium
$1,221,818Amount above renewal under the entered assumptions.
TI, free rent and landlord contributions
$1,235,000Entered lease incentive package; source terms and payment conditions still control.
Move, overlap and disruption
$829,000Entered relocation transition stack including double occupancy.
Tenant project capital
$1,050,000Entered tenant-funded capital before tax, financing and timing effects.
Parking, other and custom cash costs
$202,289Nominal recurring and custom cash items across the common horizon.
Starting relocation rent that reaches the renewal PV, all other entered terms held constant.
Whole double-occupancy months before relocation exceeds the renewal PV.
Entered daily business impact only; this is not an operational forecast.
PV advantage still available for additional entered relocation cost.
04 · COMMON-HORIZON EVIDENCE
Follow the cost through time.
Annual bars use nominal cost. The downloadable schedule preserves every month, present value, cumulative result, review item and model boundary.
MonthRenew occupancyRenew transitionRelocate occupancyRelocate transitionCumulative difference
01$9,417$172,000$17,700$650,000+$486,283
02$9,417$0$17,700$48,000+$542,567
03$45,250$0$17,700$48,000+$563,017
04$45,250$0$17,700$48,000+$583,467
05$45,250$0$55,200$0+$593,417
06$45,250$0$55,200$0+$603,367
07$45,250$0$55,200$0+$613,317
08$45,250$0$55,200$0+$623,267
09$45,250$0$55,200$0+$633,217
10$45,250$0$55,200$0+$643,167
11$45,250$0$55,200$0+$653,117
12$45,250$0$55,200$0+$663,067
13$46,713$0$56,856$0+$673,210
14$46,713$0$56,856$0+$683,354
15$46,713$0$56,856$0+$693,497
16$46,713$0$56,856$0+$703,641
17$46,713$0$56,856$0+$713,784
18$46,713$0$56,856$0+$723,928
82$54,710$0$65,912$0+$1,408,338
83$54,710$0$65,912$0+$1,419,540
84$54,710$0$65,912$0+$1,430,741
05 · DECISION CONTROL QUEUE
Resolve what the arithmetic cannot.
Review prompts identify missing or normalized evidence. They do not validate the option, premises, schedule or transition plan.
The numbers are internally consistent; the transaction evidence still controls.
MODEL BOUNDARY
Decision support—not a notice or recommendation.
- Both lease proposals are recalculated over the same user-entered comparison horizon and discount rate.
- Lease incentives and tenant capital use the flagship lease engine; TI allowance, landlord work and other incentives are treated as immediate economic offsets, while free rent follows the entered monthly scope.
- Custom costs follow their entered basis, timing and growth. Included-item values reduce economic comparison cost as user-entered replacement-value credits; they are not cash incentives or landlord obligations.
- Relocation overlap adds the entered current-premises monthly occupancy cost for the selected number of months; it does not rebuild the existing lease or infer when possession is available.
- Business disruption is the entered number of days multiplied by the entered daily impact. The model does not estimate revenue loss, productivity, customer attrition or operational risk.
- Transition costs, restoration, moving, timing, tax and legal outcomes are user-entered and unverified. The model does not determine option validity, notice compliance, possession rights or restoration scope.
START BEFORE THE DEADLINE
Protect optionality while the economics develop.
Use the Canadian playbook to separate the contractual option notice from the earlier planning, property search, construction and move decisions.