Industrial Insights Newsletter

Industrial Insights: Renew or Relocate

Industrial Operations · October 1, 2026 · Justin Smith, SIOR · Lee & Associates

Renew or relocate? The cost of moving usually decides it.

We have a rule of thumb in our industry: tenants don’t move to a building the same size just for cheaper rent. Why? The cost of moving.

I have had clients tell me they would rather retire than move their warehouse again. Funny, I know, but it tells you how much a move disrupts people’s jobs. It means two to three times the normal workload for people who still have to get their day jobs done.

So, especially when market pricing is moving around, it pays to know your cost of moving before you need it. It tells you the value of staying in your space, the capital you will need for next year’s budget, how sticky you look to your landlord at renewal, how much time you need to find real alternatives and keep your leverage, and how to deliver a move on time, on budget and without service delays to your customers.

The Industrial Relocation Guide prices it. It builds on the three cost buckets from Industrial Intelligence (new site setup, the physical move and the exit from the old building) with a full operating analysis for distribution centers, 3PLs, manufacturers, and food and supplement plants.

Cover of The Industrial Relocation Guide by Justin Smith, SIOR

44 pages · 130 cost items · 50 readiness checks

The Industrial Relocation Guide

  • 130 cost and funding items in 13 categories, each with a scope and quote basis
  • 50 readiness checks with the evidence to collect and an acceptance test
  • Separate lenses for distribution centers, 3PLs, advanced manufacturing, and food and supplement plants
  • Payback charts, a 32-activity Gantt with six release gates, and an editable decision workbook

Free downloads, no signup needed

Download the guide (PDF, 2.0 MB)Checklist and Gantt (Excel, 93 KB)
Part 1The decision

Part 1 · The decision

Start with the cost above staying

The question is never what the move costs. It is what the move costs more than staying, and what the operation gains or gives up every year after.

Cost above staying
Net move project cost minus the realistic cost of staying
Annual net savings
Occupancy savings plus operating savings minus operating cost increases
Simple payback
Cost above staying ÷ annual net savings × 12 months

Compare the same business outcome

Use the same peak demand, quality standard, service promise, equipment scope and time horizon in both cases. A stay case can include upgrades the building needs anyway; a move case can include better capacity. Write the differences down.

Include the full occupancy package

Compare effective rent, taxes and NNN, insurance, utilities, maintenance and committed incentives. Keep annual occupancy items in the same schedule as other recurring changes so rent savings are never counted twice.

Use a fuller model before you commit

Simple payback is a screening tool. Before you sign, model annual cash flows, escalations, timing, incentives, financing, taxes and residual value for the real alternatives.

When savings are zero or negative

There is no positive payback. A move made for capacity, service or growth can still be right, but it needs its own business case rather than a rent comparison.

Part 1 · The decision

A $1 million move can be a $600,000 hurdle

Of a $1.0 million move, $400,000 is either paid by the landlord or spent anyway if you stay. The other $600,000 is what the move has to earn back. Illustrative 100,000 SF operation; every number is a planning assumption.

A $1.0 million move, less $400,000 covered by the landlord or spent anyway to stay, leaves $600,000 the move has to earn back

Contributions arrive late

Keep the landlord contribution’s eligibility, cap and payment timing in the funding plan. A reimbursement paid after completion lowers the eventual cost but still leaves you funding the work first.

Stay upgrades need a real scope

The $200,000 to stay belongs in the comparison only if it is supported by scope. It should never be inserted to make a move look better.

ComponentAmount
New-site setup$525,000
Physical move$225,000
Origin restoration$100,000
Overlap and disruption$150,000
Gross move cost$1,000,000
Less landlord contribution-$200,000
Less realistic stay upgrades-$200,000
Cost above staying$600,000

Part 1 · The decision

A cheaper lease is only part of the savings

At 100,000 SF, a $0.15/SF/month rent reduction saves $180,000 a year. The same rent offer has three very different outcomes once operating costs move.

If operating costs rise $120,000 a year120 monthsIf nothing else changes40 monthsIf operating costs fall $60,000 a year30 months

Simple payback on a $600,000 cost above staying: $600,000 ÷ $60,000, $180,000 or $240,000 of annual net savings. Equal annual savings assumed.

Why the annual number moves

Test freight and drayage, employee retention and wages, utilities and demand charges, maintenance, outsourcing, additional handling and recurring systems costs. Itemize both savings and increases in cost items 111 to 120.

Turn productivity into dollars

A better layout can raise output per labor hour. It becomes a cash benefit only through something you can point to: avoided overtime, lower staffing cost, avoided outsourcing or profitable throughput. Record the mechanism and what it takes to achieve it.

Part 1 · The decision

Solve for the rent discount you need

Turn the question around. Instead of asking how long a rent offer takes to pay back, ask how big the discount has to be.

Required rent saving per SF per month
(Cost above staying ÷ recovery years + annual operating cost increase) ÷ (rentable SF × 12)
If operating costs rise $120,000 a year$0.20/SF/monthIf nothing else changes$0.10/SF/monthIf operating costs fall $60,000 a year$0.05/SF/month$0.15 offer
On these assumptions, a $0.15 offer clears only two of the three cases. Five-year recovery, 100,000 SF, $600,000 cost above staying. An annual operating saving enters the formula as a negative cost increase.

Undiscounted recovery test, not an investment valuation. Required discounts can be zero or negative when supported operating savings cover the hurdle. Adjust for area differences, stepped rent, expense recoveries and cash-flow timing.

Part 1 · The decision

Test the rent spread against the capital hurdle

Simple payback in months for a 100,000 SF operation with other costs unchanged. Read across for a bigger discount, down for a bigger move.

Monthly rent discount per SF →

Cost above staying$0.05$0.10$0.15$0.20$0.25
$400K8040272016
$600K12060403024
$800K16080534032
$1.0M200100675040
$1.2M240120806048
36 months or less37 to 6061 to 9697 or more

Read across a row

At a $600,000 cost above staying, moving from a $0.05 to a $0.15 monthly discount changes payback from 120 months to 40.

Read down a column

At a $0.15 discount, a $400,000 move pays back in about 27 months. A $1.0 million move takes about 67.

Arithmetic on assumptions, not a survey of relocation prices. No escalation, discounting, tax, financing or residual value. The companion workbook recalculates this matrix with your operating-cost and NNN inputs.

Part 1 · The decision

Price the project. Then fund the transition.

Five kinds of money move through a relocation. Blending them is the most common way a good move gets a bad budget.

One-time costItems 1-110

Setup, relocation, exit, staffing and disruption belong in the project comparison. Separate cash spend from economic loss and from capital expenditure.

Annual changeItems 111-120

Enter move and stay costs on a stabilized basis. Show the ramp separately; a full year of savings does not begin on the first operating day.

Cash tied upItems 121-124

Deposits and extra inventory need cash even though they are not expenses. Financing, spoilage and extra handling on that inventory are separate costs.

OffsetsItems 126-129

Landlord contributions, asset sales and other recoveries need written conditions, collectible amounts and receipt dates.

ReserveItem 130

A separate allowance for identified uncertainty. Never use it to hide missing scope or stack it on an allowance already in a vendor quote.

Weekly cash curve
Opening cash + financing + receipts − deposits − progress payments − operating outflows

Watch the lowest balance

Record the lowest weekly balance, not just the final net cost. Reimbursement dates, overlap rent and inventory build usually drive the peak requirement.

Count lost margin, not lost revenue

For disrupted orders, estimate contribution margin after avoidable variable costs and backlog recovery. Reconcile idle payroll, expedited freight and overtime so each impact is counted once.

Part 2The operation

Part 2 · Operating lens 1 of 4

Distribution centers: prove usable throughput

A distribution center is only as big as the capacity it delivers on the busiest shift.

Size the operation at peak

Receiving by hour, orders and order lines, pallet and carton dimensions, pick mix, replenishment cycles, returns and seasonal on-hand. Count quarantine, staging, empty pallets and charging space as well as sellable stock.

Convert the shell into a layout

Test usable positions, clearances, column interference, lift height and aisle geometry. Confirm rack engineering, slab, sprinkler compatibility, docks, trailer circulation and dispatch staging for the actual commodities.

Protect inventory and system truth

Create origin-to-destination locations, wave manifests, scanned receipts and count reconciliation. Rehearse receive, putaway, pick, pack, ship and return, including labels, carrier feeds, RF coverage and recovery from a failed cutover.

Measure acceptance

Agree on sustained lines or orders per labor hour, inventory accuracy, error rates, dock turn time and on-time shipment at the design peak. Write the sample period and tolerances before the move.

Useful questionHow much sellable, accessible capacity will this layout deliver on the busiest shift after reserve, staging, quarantine and travel paths are included?

Commonly missed

Rack reuse versus new procurement. Floor repairs and anchors. RF surveys after the racks are installed. Overflow storage. Extra touches during dual operation. Trailer and carrier changes. Returns that keep arriving at the old address.

Evidence to collect: SKU and peak-flow data, rack drawings, commodity and storage assessment, floor evidence, WMS transaction tests and operating acceptance logs.
Cost items to focus on: 4, 14-15, 24, 27-29, 41-50, 61-79, 101-124

Part 2 · Operating lens 2 of 4

Logistics and 3PL: move each customer safely

A 3PL does not move a building. It moves every customer’s service promise, one account at a time.

Turn contracts into wave constraints

List SLAs, blackout dates, required approvals, order cutoffs, penalties, custody terms and inventory ownership. Sequence the migration by account, SKU and lot, and service sensitivity, not by a percentage of floor space.

Recalculate the network

Model lanes, drayage, port and rail access, fuel, tolls, detention, empty miles, driver hours and carrier schedules on actual volumes. A lower rent can raise transportation cost enough to reverse the comparison.

Keep billing and custody intact

Map customer and location masters, rate tables, EDI and API feeds, balances, cycle counts, access controls and proof of delivery. Test billing through both sites and reconcile stock by owner and status.

Give each wave a recovery plan

Name the command lead, the dispatch, IT and customer escalation paths and the rollback trigger. Reserve the capacity critical customers need while their wave is unavailable.

Useful questionWhich customers could lose service during this wave, and what inventory, staffing and system capacity remains available to them?

Commonly missed

Ship-to and ship-from addresses, ASN instructions, labels, appointments, returns, carrier routing and after-hours contacts. Written customer acceptance wherever the contract requires it.

Evidence to collect: Account-level service matrix, actual lane model, manifests and custody reconciliation, tested transactions and customer approval records.
Cost items to focus on: 63-64, 71-80, 91-110, 111-124

Part 2 · Operating lens 3 of 4

Advanced manufacturing: install a process, not just machines

A machine on a new floor is not production. Saleable output at rate is.

Map the current process first

Record material routes, work in process, changeovers, scrap, rework, constraints and maintenance access before you draw the future layout. That is where the flow improvements, and later automation, come from.

Resolve utilities at each asset

Voltage, phase, load, air pressure and quality, water, drainage, gases, exhaust, heat rejection and controls. Verify foundations, pits and vibration. Keep rigging, final hookup and OEM commissioning as separate scopes.

Move in controlled waves

Asset IDs should connect origin, destination, shutdown method, lift and transport plan and reconnect requirements. Stage the work so installed equipment is never trapped behind the next wave.

Qualify performance at the new site

Startup is followed by calibration, process qualification, test parts and customer or quality release. Define throughput, yield, tolerances and sustained run time before accepting a line.

Useful questionWhat must pass after this machine is reconnected before we can sell the output and depend on its production rate?

Commonly missed

Realistic buffer stock and alternate production. Supplier and customer commitments. Equipment that cannot be duplicated, components with uncertain restart behavior, and OEM technicians with limited availability.

Evidence to collect: Measured equipment data, utility point-of-use specifications, lift plans, test protocols and signed performance acceptance by line.
Cost items to focus on: 4-6, 19-40, 51-60, 73-79, 101-110

Part 2 · Operating lens 4 of 4

Food and dietary supplements: make product release explicit

In food and supplements, mechanical completion is not permission to ship.

Design storage and process separation

Map ingredient receipt, quarantine, release, allergens, personnel and material routes, sanitation, waste and finished goods. Scope surfaces, drainage, utilities, temperature, humidity and air for the actual hazard and process.

Carry traceability through the transfer

Keep lot identity and status for ingredients, labels, packaging, work in process, retained samples and released stock. Control label versions so a transfer never bypasses hold and release rules.

Treat startup as a quality workstream

Define calibration, cleaning verification, water and air checks, process qualification, trial batches, lab tests, documents and release authority. Price the material and time for trials, rejects and delayed saleable output.

Check site and customer obligations early

Have the quality and regulatory owner confirm registrations, permits, certifications, customer audits and food-safety plans for the new site. Do not assume anything transfers automatically.

Useful questionWhat evidence lets us release this line and product family, and what remains on hold?

The regulatory frame

FDA’s Part 117 covers human food CGMPs and preventive controls; Part 111 covers dietary supplement CGMPs. Applicability and exemptions depend on the operation. Record exactly what is authorized to run and ship, and what stays on hold.

Evidence to collect: Approved process and flow plan, segregation map, lot reconciliation, calibration records, qualification and testing dossier, and a signed release.
Cost items to focus on: 20, 23, 34-40, 51-60, 76, 101-110, 124

Part 2 · The operation

Three public facts that change the plan

Each one is small. Each one shows why a relocation has to be planned around evidence rather than dates.

$3,000

and 20 to 30 business days for a power study

SCE’s Preliminary Capacity Assessment (PCA) report costs $3,000, paid in advance and nonrefundable, and the clock starts only after payment and complete documents. It is preliminary planning information. It does not reserve capacity and it is not an energization date.

Southern California Edison [7]
$50,000

reported savings from measured layout planning

A NIST/MEP success story published October 29, 2024 describes a chemical manufacturer that planned its move with measured equipment data and digital layouts. One case, not an expected return, but a clear argument for measuring before you move.

NIST / MEP [3]
6 → 1

food facilities consolidated into one

JBA describes Wellington Foods consolidating six Long Beach facilities into an 82,000 SF Corona facility, with process piping and production planning as part of the project. Vendor-reported and undated.

JBA [2c]
What to take from them: start power diligence early, measure the equipment and the flows, and plan the transition across sites, departments and customer commitments. Then replace every case result with your own measured assumptions.

For fire protection, storage design and workplace safety, use the applicable authority, your insurer and qualified engineers. OSHA’s warehouse guidance and FM’s data sheets helped define review topics; this guide is not a building-specific design review. [5, 6]

Part 3The execution

Part 3 · The execution

Plan the interfaces, not the truck date

An illustrative 32-week master schedule with six release gates. Week 0 is the first approved operating release, not the day the trucks roll.

W-24W-20W-16W-12W-8W-4W0W+4W+8Operating requirementsBuilding, fire, power and floor due diligenceMove-versus-stay economicsLease and exit terms; execute after G1G1 - Site feasibility acceptedLayout, process and utility designG2 - Scope and budget freezePermits, fire and insurer reviewsUtility capacity and long-lead equipmentRacks and equipment procurementBuilding and yard constructionProcess utility installationsRack and material-handling installationIT, network, WMS and securityQuality spaces and documentationRetention, hiring and trainingVendor handoffs, lift plans and insuranceInventory, master data and cutover rehearsalIntegrated readiness testingG3 - Destination ready for Wave ABuffer stock, temporary capacity and customersWave A - stock and noncritical equipmentRig, reconnect and test each equipment waveQualification and quality release by waveG4 - First operating release (Week 0)Wave B - remaining stock and equipmentRamp and service performanceG5 - Stable peak performance acceptedRestore only vacated origin zonesG6 - Origin surrender acceptedActual costs, reimbursements and closeoutDual occupancy - illustrative exposure windowW0 = first approved operating release
WorkstreamRelease gateDual occupancy exposure

Gates are planned dates only; utilities, permits and OEM lead times can stretch the project. A relocation needs more runway than a renewal, so start the real estate search well before Week -24.

Part 3 · The execution

Six gates prevent premature commitments

A calendar milestone is a target. A signed release supported by evidence is the operating decision.

G1

Site feasibility

Operations, facilities, finance and the sponsor accept use, power, floor, fire and storage fit, staffing and economics before the lease is executed.

G2

Scope and budget freeze

Issued scopes cover vendor interfaces and exclusions. The budget shows allowances, pending items, incentives and timing. Design changes follow written change control.

G3

Destination ready for the first wave

Affected zones have safety and authority acceptance, usable utilities, storage, systems, access and staffed capacity. One named person releases the transfer.

G4

First operating release

Equipment, process, transactions and product quality pass their defined tests. Later waves repeat the checks; they do not inherit permission from the first.

G5

Stable performance

The agreed peak case runs for the agreed duration with acceptable service, inventory accuracy, yield and staffing.

G6

Origin surrender

The old facility meets the written restoration conditions. Inspection, keys, meters, condition evidence and landlord acceptance are documented before the deadline.

Record five things for every gateOwnerEvidenceAcceptanceAuthorityFallback

Part 3 · The execution

Make every vendor boundary visible

Ask competing vendors to price the same asset inventory, quantities, drawings, wave plan, access assumptions and acceptance tests. Otherwise the low bid may simply be missing a handoff.

01Disconnect
02Drain or isolate
03Dismantle
04Rig and load
05Transport
06Offload and place
07Reconnect
08Commission
09Qualify
10Release

The interface matrix: for every asset, name the owner of each of these ten steps and the evidence that hands it to the next. One blank cell becomes an unplanned crew, a delay or a claim.

Attach a quote basis

Inclusions and exclusions, site access and hours, load and utility assumptions, quantities, permits, shipping, overtime, taxes, cleanup, insurance, allowances, escalation, cancellation, change-order rates and a validity date.

Name the acceptance test

Drawings and as-builts, inspection records, safe startup, performance tests, quality documents and defect closeout. Tie progress billing and retainage to clear deliverables rather than percent complete.

Ask for uncertainty in writing

A site walk by a relocation specialist can tighten the estimate considerably. Ask the estimator to state the scope, fee, basis, range, exclusions, contingency and expiration.

Manage the project as the owner

Designate a move manager and an executive escalation owner. Keep a decision log, daily wave readiness, open defects and versioned budgets.

Part 4The cost inventory
01

Part 4 · Cost inventory · Category 01 of 13

Planning and advisers

The people who define the scope before anyone prices it.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
001Relocation feasibility study
Compare move and stay alternatives, operating needs, schedule and risk; exclude specialist work priced below.		Alternatives studied; sites visited; deliverables; exclusions
002Relocation project management
Owner-side coordination, master schedule, change control and move supervision; avoid duplicating GC general conditions.		Project duration; phases; site coverage; authority and change-control scope
003Architectural design
Drawings and specifications for the new facility; separate permit fees and construction.		Area and drawing packages; redesign rounds; construction administration
004Warehouse or production layout engineering
SKU flows, adjacencies, line balancing, throughput, access and phased transition.		Peak flows; SKU mix; simulation/modeling scope; layouts compared
005Civil and structural engineering
Design of site works, foundations, mezzanines and structural modifications.		Loads; foundations; structures; survey information
006Mechanical, electrical and plumbing engineering
Design services for building and process systems; installation is in categories 03 and 04.		Loads and utility points; drawings; controls; commissioning responsibilities
007Cost estimating and site-walk budget
Independent scope survey, quantities and estimate; obtain written fee, exclusions and accuracy terms.		Asset/site walk scope; estimate basis; uncertainty range; written fee
008Bid preparation and procurement support
Comparable vendor scopes, bid leveling and purchase-order administration.		Vendor packages; bid rounds; procurement administration
009Lease, contract and transaction counsel
Lease negotiation, work letters, surrender obligations and relocation/vendor contracts.		Lease/work-letter scope; exit review; contract review; fee basis
010Specialist risk and insurance advice
Coverage assessment for transit, installation and interruption; actual premiums belong in item 80.		Coverage gaps; policy coordination; advice scope
02

Part 4 · Cost inventory · Category 02 of 13

Due diligence and approvals

What has to be true about the building before you sign.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
011Measured survey and verified as-builts
Confirm dimensions, columns, elevations, utilities and existing services before final design.		Survey area; scanning; ceiling/column/utility verification
012Zoning and permitted-use approvals
Applications and review fees for actual use, operating hours and site constraints.		Actual use; operating hours; application and hearing scope
013Building permits and plan review
Authority fees and required inspections for construction; exclude design and contractor work.		Permit valuation; review rounds; authority fees and inspections
014Fire and commodity-storage review
Fire-protection engineer and authority review of commodities, storage height and suppression compatibility.		Commodity/packaging mix; height; rack arrangement; water supply; insurer review
015Rack and seismic engineering approvals
Rack calculations, anchorage design and rack permit fees; exclude rack procurement and installation.		Rack layout; loading; seismic location; anchorage; permit fee
016Utility capacity and connection studies
Utility applications and feasibility studies; capacity charges and physical upgrades belong in item 31.		Required capacity; service voltage; utility study fee; response timeline
017Phase I environmental assessment
Initial site/environmental due diligence when appropriate; separate investigation and remediation.		Assessment scope; site history; exclusions
018Phase II testing or targeted sampling
Additional investigation only where conditions warrant it; exclude remediation.		Sampling locations; analytes; lab turnaround; investigation scope
019Slab, floor-load and geotechnical testing
Verify floor flatness, slab capacity, soil and foundation suitability for planned loads.		Point loads; flatness tolerance; slab testing; equipment/foundation loads
020Process-specific operating permits
Applicable air, wastewater, hazardous-material, pressure-system or occupancy approvals; verify local applicability.		Process emissions; waste streams; chemical quantities; applicable authority fees
03

Part 4 · Cost inventory · Category 03 of 13

Building and site fit-out

Turning a shell into your facility.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
021Office and employee-area construction
Offices, meeting rooms, lockers and break rooms, including finishes and furniture only if scoped.		Area; finishes; furniture scope; accessibility; employee count
022Restrooms and accessibility alterations
Required restrooms, accessible routes and related building alterations.		Fixture count; accessible routes; existing conditions
023Production partitions and controlled rooms
Process separation and room enclosure; specialized sanitary finishes are in item 51.		Area; partition construction; separations; fire rating; process needs
024Slab repair and structural reinforcement
Repair, flattening, reinforcement or replacement needed for racks, equipment or traffic.		Area; load/flatness criteria; slab condition; repair method
025Equipment foundations, pits and trenches
Machine pads, vibration isolation bases and process pits; separate machine rigging.		Machine loads; vibration tolerances; dimensions; excavation
026Mezzanines, stairs and guards
New or relocated mezzanine structure and access systems; avoid overlap with rack-supported platforms.		Live load; structure; access; guards; fire/permit conditions
027Dock doors, levelers and seals
Dock equipment, doors, bumpers, shelters and installation.		Door count; trailer mix; dock heights; equipment ratings
028Yard, paving, fencing and gates
Exterior modifications for trailers, loading, storage, security and traffic flow.		Yard geometry; trailer positions; pavement loading; scope of fencing
029Sprinkler and fire-alarm construction
Physical fire-protection upgrades; design/review is in item 14 and ongoing service in item 118.		Approved storage/process design; water supply; sprinkler/alarm scope
030General contractor mobilization and overhead
Site supervision, temporary facilities, safety and general conditions; do not add a second markup to all-in bids.		Duration; phasing; site supervision; temporary works; included markup
04

Part 4 · Cost inventory · Category 04 of 13

Power and process infrastructure

Service, distribution and process utilities, delivered where the equipment needs them.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
031Utility service upgrades and capacity charges
Transformer/service work and utility charges needed to deliver required capacity; studies are in item 16.		Written utility scope; delivered capacity; energization date; charges
032Electrical distribution and machine circuits
Switchgear, panels, busway and new branch circuits to connection points; final hookup is in item 78.		Demand/load schedule; voltage; panel/circuit counts; connection boundaries
033Lighting and controls
Warehouse, production, office and exterior lighting, including task lighting and controls.		Illuminance needs; fixtures; zones; controls; installation
034General HVAC and ventilation
Comfort cooling, heating, ventilation and balancing; special process air is in item 52.		Heat load; ventilation; outdoor conditions; operating hours; balancing
035Compressed-air system
Compressors, dryers, receivers and distribution; exclude moving existing compressors priced in category 08.		Delivered flow/pressure; air quality; redundancy; distribution length
036Process gases, steam and fuel systems
Gas systems, boilers, steam lines and associated safety equipment, where applicable.		Gas/steam demand; pressure; purity; boiler/process requirements
037Process water and treatment
Water distribution, filtration, purification or softening required by the process.		Flow; pressure; required quality; treatment and distribution
038Drains, sewer and wastewater pretreatment
Process drainage, waste lines and pretreatment systems; permit fees are in item 20.		Flow/composition; discharge conditions; pretreatment; trench length
039Dust collection, exhaust and emissions controls
Source extraction, filtration and air-pollution control equipment, including combustible-dust design if relevant.		Capture volume; material/dust properties; filter/control design
040Backup power and continuity systems
Generator, UPS, transfer switch and associated installation, fuel storage and testing.		Critical loads; runtime; transfer behavior; testing; fuel arrangement
05

Part 4 · Cost inventory · Category 05 of 13

Storage and material handling

Rack, conveyors, automation and the equipment that moves product.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
041New pallet rack and shelving purchase
New storage equipment; reused rack dismantling/transport/reassembly belong in item 72.		Actual pallet/load sizes; positions; rack type; storage restrictions
042New rack installation and anchorage
Labor, anchors, protection and inspection for newly purchased rack; separate engineering/permits.		Approved rack plan; bays; anchor quantities; install access
043Pick modules and work platforms
Order-picking structures and stations; exclude mezzanine structure already in item 26.		Pick-face count; replenishment method; platform/load scope
044Conveyor and sortation systems
New or upgraded conveyor/sorter hardware and installation; moving existing equipment belongs in category 08.		Throughput; product dimensions; controls; install and acceptance scope
045Automation, robotics and controls
AS/RS, mobile robots, PLCs and automation integration; separate enterprise software in item 63.		Actual product/order profile; exceptions; integration; support
046Forklifts and other mobile equipment
New equipment or replacement purchases/leases required by the destination; moving existing units belongs in item 75.		Load weight; lift height; aisle geometry; duty cycle; lease terms
047Battery charging and fueling stations
Charging infrastructure, battery rooms, ventilation and fueling equipment.		Battery chemistry; duty cycle; charger load; ventilation; fueling needs
048Packaging and fulfillment workstations
Pack benches, scales, pallet wrappers and shipping stations; production packaging lines belong in process scope.		Station counts; ergonomic setup; packaging profile; included equipment
049Safety barriers, floor markings and signage
Guardrails, bollards, pedestrian segregation, traffic markings, labels and building signage.		Traffic plan; protection points; marking/signage quantities
050Inventory locations and barcode labels
Bin/location creation, barcode printing and relabeling for the new layout; exclude full inventory reconciliation.		Location count; identifier scheme; label media; labor; verification
06

Part 4 · Cost inventory · Category 06 of 13

Food, supplements and quality

Sanitary construction, controlled environments and product release.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
051Sanitary floors, walls and ceilings
Cleanable finishes, coving and process-area surfaces appropriate to the product and cleaning regime.		Finish area; process exposure; cleaning chemicals; sanitary details
052Controlled temperature, humidity and filtration
Special process HVAC, pressure relationships and filtered air where the process requires it; no universal cleanroom assumption.		Specified temperature/humidity/pressure; filtration; verification method
053Refrigeration and temperature-controlled rooms
Cold rooms, freezers, refrigeration equipment, monitoring and commissioning.		Load; pull-down time; temperature range; monitoring; backup needs
054Hygienic equipment installation
Sanitary mounting, piping and fittings for relocated or new production equipment; exclude general machine rigging.		Process contact points; sanitary design; materials; installation scope
055Sanitation and contamination-control startup
Deep clean, pest-control setup, sanitation materials, hygiene stations and cleaning verification.		Cleaning method; verification; pest program; startup labor/materials
056Allergen, quarantine and controlled-storage segregation
Physical separation and storage controls for ingredients, work in process, rejects and released finished goods.		Ingredients/allergens; status controls; segregated areas and flows
057Quality laboratory and sample-storage fit-out
Lab benches, instruments, sample-retention storage and necessary laboratory services.		Test scope; instruments; services; sample quantities; retention storage
058Process qualification, calibration and validation
Documented startup qualification and product/process-specific verification; generic machine commissioning is in item 79.		Qualification protocol; calibration list; acceptance and QA signoff
059Site registrations, certifications and customer audits
Applicable site-related fees, certification transfers and customer qualification audits; confirm product and jurisdiction.		Applicable registrations/customer certifications; audit scope and fees
060Trial batches, laboratory tests and quality release
Test materials, testing and quality release during startup; avoid duplicating trial-run materials in item 109.		Trial-batch size/count; tests; hold time; disposition; QA-release criteria
07

Part 4 · Cost inventory · Category 07 of 13

IT, systems and security

Network, systems, devices and the cutover.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
061Network cabling and fiber installation
Copper/fiber cabling, drops, racks and cabling certification; carrier service activation belongs in item 62.		Drop count; lengths; cable type; certification; patch/rack scope
062Internet, telecom and carrier activation
Circuit turn-up, carrier installation and number/service transfer fees; ongoing subscriptions belong in item 118.		Circuit bandwidth; redundancy; activation date; installation/termination fees
063WMS, ERP, TMS and system configuration
Location master, interfaces, license/setup changes and application implementation; annual fees belong in item 118.		Applications; location count; interfaces; licenses; implementation scope
064Data migration and cutover testing
Data mapping, backup, reconciliation and application cutover tests; physical SKU reconciliation is in item 76.		Record volumes; reconciliations; end-to-end tests; rollback plan
065Servers, cloud connections and backup equipment
Required hardware, edge systems and one-time cloud/network setup; recurring service costs belong in item 118.		Hardware sizing; workloads; backup scope; one-time setup
066Scanners, printers and operating terminals
New or replacement RF devices, label printers, workstations and associated setup.		Device count; coverage/use profile; printer/label compatibility
067Warehouse wireless design and coverage
RF survey, access points, installation and coverage testing under the actual rack layout.		Rack-loaded RF design; roaming; operating-device testing
068Access control, cameras and intrusion systems
Security hardware, installation and commissioning; ongoing monitoring belongs in item 118.		Coverage/layout; camera retention; doors; monitoring boundaries
069Fire, refrigeration and process-monitoring interfaces
IT integration and alert routing for building/process systems; exclude mechanical controls already in equipment scope.		Alarm points; systems/interfaces; routing; tested escalation
070Cybersecurity and remote-access setup
Firewalls, segmentation, secure vendor access and cutover security testing.		Access roles; segmentation; vendor access; cutover test scope
08

Part 4 · Cost inventory · Category 08 of 13

Physical relocation and recommissioning

Disconnect, move, reconnect and prove it runs.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
071Asset tagging, packing and office move
Move inventory, labels, crates, furniture, records and office contents; specialist machines and inventory are separate.		Asset register; pack scope; crates; access; office quantities
072Existing rack dismantling, hauling and reassembly
All-in reuse move package for existing racks; keep new rack purchase/installation separate.		Reuse suitability; rack bays; labor; trucking; anchors; permit exclusions
073Equipment shutdown and utility disconnection
Safe shutdown, isolation, drain-down and disconnection of machines being moved.		Machine IDs; isolation/drain-down scope; shutdown method; trades
074Machine disassembly, rigging and load-out
Disassembly, crating, crane/forklift work and loading; exclude highway transportation.		Machine weights/dimensions; lift plan; disassembly; crane/access requirements
075Freight, specialized transport and escorts
Trucking, permits, escort vehicles, temperature-controlled transport and shipment of mobile equipment.		Loads; route; permits; carriers; escorts; handling/temperature needs
076Inventory transfer, counts and reconciliation
SKU/lot counts, loading, transfer labor and stock reconciliation; freight can be here or item 75, once only.		SKU/lot quantities; count method; temporary controls; reconciliation labor
077Equipment offload, placement and reassembly
Destination rigging, positioning, leveling and mechanical reassembly.		Machine IDs; placement drawings; access path; leveling/reassembly scope
078Final equipment utility reconnection
Final electrical, air, water, gas and exhaust hookup from prepared connection points.		Connection point list; trades; utility readiness; OEM boundaries
079Machine startup, calibration and performance tests
OEM/vendor technicians and functional testing; regulated/product qualification is separately scoped in item 58.		Machine-specific tests; tolerances; OEM time/travel; acceptance criteria
080Transit and installation insurance premiums
Incremental premium/deductible budget for move coverage; do not count insured damage twice.		Declared values; coverage period; deductibles; exclusions; delay coverage
09

Part 4 · Cost inventory · Category 09 of 13

Old-facility exit and surrender

Restoration and the obligations that follow you out of the old building.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
081Remaining lease obligation or early-exit payment
Contractual exit costs net of avoided rent or verified recovery; do not also put the same months in item 101.		Lease/legal position; dates; recovery assumptions; exit consideration
082Holdover rent and surrender delay
Incremental premium or additional rent caused by late delivery; distinguish it from ordinary overlap rent.		Required surrender date; holdover rate; probable delay; alternative plan
083Lease-required improvement removal
Demolition/removal of improvements the lease requires removed; exclude machine disconnection in item 73.		Written surrender scope; area/quantities; demolition and disposal
084Rack anchors, holes and slab restoration
Cut/grind anchors, patch holes and restore slab to the agreed surrender condition.		Anchor/penetration count; patch specification; landlord acceptance
085Walls, ceilings and finish restoration
Repairs and reinstatement of building finishes required by the lease or surrender agreement.		Written condition requirements; finish quantities; repair method
086Abandoned utility and process-system removal
Remove/cap unused wiring, pipes, ducts and process infrastructure; separate relocated machine disconnection.		Abandoned systems and lengths; isolation/capping requirements
087Waste, obsolete assets and hazardous disposal
Disposal/recycling charges for unusable assets and waste; asset sale proceeds belong in item 129.		Asset/waste inventory; disposal method; required handling evidence
088Environmental investigation and remediation at exit
Required exit sampling, cleanup and documented closure; avoid counting new-site assessment here.		Known condition; testing/remediation scope; clearance/closure evidence
089Final cleaning, yard repair and landscaping
Surrender clean and exterior restoration beyond normal operations.		Surrender standard; cleaning area; exterior repair quantities
090Closeout inspections, meter closure and disputes
Surrender inspection fees, utility termination charges, documentary closeout and specific legal resolution costs.		Inspection/termination fees; meter closure; specific dispute scope
10

Part 4 · Cost inventory · Category 10 of 13

People and organization

Retention, hiring, training and the time your own team spends on the move.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
091Employee retention and transition bonuses
Incremental incentives to retain key people through the move.		Eligible roles; payment triggers; number retained; retention period
092Employee relocation and commuting assistance
Authorized relocation packages, temporary commuting assistance or transportation support.		Eligible employees; package caps; move distance; duration
093Severance and separation costs
Costs of positions or people not transferring, based on actual arrangements and applicable requirements.		Affected roles; actual agreements; timing; applicable requirements
094Recruiting and onboarding replacements
Agency fees, hiring, screening and onboarding due to relocation-related attrition.		Vacancies caused by move; fee basis; onboarding scope
095Training and cross-training
Training on the new layout, equipment, safety, quality systems and revised procedures.		Roles; training hours; new procedures/equipment; verification
096Move overtime, premiums and temporary staff
Incremental wages and agency staff for packing, transfer and startup; remove labor already inside vendor bids.		Extra paid hours; premium rate; agency hours; overlap with bids
097Travel, lodging and relocation per diem
Staff and technician travel/temporary lodging; exclude OEM travel already in item 79.		Travelers; days; locations; per diem; vendor-included travel
098Employee communication and HR administration
Additional relocation communications, staffing coordination and change administration.		Affected groups; communication needs; extra admin labor
099Management and internal team timeBusiness loss
Incremental backfill/payroll, or separately valued diverted time; choose one valuation basis and explain it.		Incremental backfill or diverted hours; stated valuation basis
100Ramp-up productivity lossBusiness loss
Extra paid hours per unit during learning; exclude lost contribution margin already in item 107.		Baseline vs startup paid hours per unit; duration; exclude lost output
11

Part 4 · Cost inventory · Category 11 of 13

Business continuity and startup

Overlap, temporary capacity and the real cost of the ramp.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
101Overlapping rent and occupancy costs
Extra concurrent-site costs during fit-out and cutover, beyond the common comparison baseline; exclude item 81 months.		Site occupancy dates; common baseline; lease charges; avoid exit overlap
102Temporary warehouse, swing space or overflow 3PL
Temporary facility/service expense required to keep operations running; exclude permanent new-site rent.		Area/pallet positions; duration; service scope; handling and freight
103Temporary equipment and utility rentals
Rental forklifts, generators, cooling, compressed air or other bridge equipment.		Equipment type; duration; utilization; delivery; fuel and maintenance
104Inventory-buffer carrying and storage expense
Incremental interest, storage, insurance or handling of extra buffer stock; the inventory principal is item 124.		Additional stock value; holding days; financing/storage/insurance rates
105Expedited freight and emergency replenishment
Incremental freight premiums due to cutover or ramp-up; normal ongoing transport delta is item 112.		Incremental expedites; premium vs normal rates; cutover period
106Customer penalties, service credits and claims
Documented contractual penalties or concessions for disruption; avoid duplication with lost margin.		Customer contracts; affected service events; negotiated recovery
107Lost contribution margin from missed production or ordersBusiness loss
Unrecoverable revenue less avoidable variable costs, after backlog recovery; not gross revenue or ordinary fixed payroll.		Unrecoverable units/orders; unit contribution margin; backlog recovery
108Damage, spoilage, scrap and rework
Incremental uninsured loss or deductible, disposal and rework; net recoveries separately and avoid duplicate trial scrap.		Quantity; replacement/rework cost; recoveries; deductible; disposition
109Startup consumables, trial runs and changeover materials
Non-quality startup materials and supplies; item 60 owns qualification batches and associated testing.		Runs; materials; quantities; consumables; distinction from QA trials
110Defect correction and temporary operating workarounds
Unreimbursed punch-list fixes and bridge measures during startup; exclude work covered by contractor warranty.		Issue register; warranty responsibility; bridge duration; actual scope
12

Part 4 · Cost inventory · Category 12 of 13

Annual operating-cost differences

What changes every year after the move, for better or worse.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
111Rent, escalations, operating expenses and property chargesAnnual cost
Compare all-in annual occupancy cost for move versus stay; use a year-by-year model if escalations differ.		Same horizon; all-in rent; escalations; operating charges; incentives
112Transportation, drayage and delivery costAnnual cost
Annual network delta from mileage, mode, carrier rates and customer/supplier geography.		Actual lanes; volume; rate/mileage; mode; service constraints
113Labor rate, staffing and turnoverAnnual cost
Annual net staffing/pay delta including shifts, benefits, training and persistent turnover.		Staffing by shift; wage/benefit rates; turnover; expected productivity
114Electricity, gas, water and sewerAnnual cost
Annual usage and tariff/demand-charge delta at planned throughput.		Measured/process demand; tariffs; demand charges; hours; weather
115Equipment and building maintenanceAnnual cost
Annual preventive service, repairs and upkeep delta; separate one-time startup repairs.		Equipment/asset list; service frequency; contract scope; expected repair
116Recurring insurance premiumsAnnual cost
Annual property, liability, equipment and other relevant insurance delta; exclude one-time transit premium.		Equivalent coverage/limits; site risk; deductibles; annual quotes
117Outsourced storage and recurring handlingAnnual cost
Annual difference in permanent outside storage, overflow handling or 3PL support.		Structural overflow quantities; storage/handling rates; term
118IT, security, monitoring and service contractsAnnual cost
Annual software, circuits, alarm monitoring, fire service and other ongoing service subscriptions.		Actual subscriptions/circuits/monitoring scope; renewals; per-device fees
119Recurring quality, sanitation and complianceAnnual cost
Annual testing, certifications, pest control, sanitation and applicable compliance costs.		Applicable tests/audits; frequency; sanitation/pest service scope
120Recurring inventory carrying and working-capital financeAnnual cost
Annual cost of structural inventory changes, including finance/carrying cost; item 124 owns extra principal.		Structural stock delta; cash cycle; financing and other carrying rates
13

Part 4 · Cost inventory · Category 13 of 13

Funding, offsets and reserve

Cash tied up, money coming back, and the reserve for what you do not know yet.

One-time project cost unless tagged. Enter move and stay amounts; blank means unknown, not zero.

#Item and scopeQuote basisMoveStay
121Lease security deposit or cash collateralCash tied up
Refundable cash posted for the lease; expense only an identified forfeiture or nonrefundable fee.		Deposit terms; refund date; collateral requirements; bank fees elsewhere
122Prepaid rent and occupancy paymentsCash tied up
Cash paid before use; avoid counting again as an economic cost when recognized in rent.		Advance amounts; dates; credit application; avoid expense duplication
123Utility and vendor deposits or progress advancesCash tied up
Recoverable deposits and advance payment timing; underlying purchase/install cost is already in the relevant line.		Payment schedule; recovery/credit terms; underlying cost line
124Extra inventory and working-capital principalCash tied up
Peak cash tied up in buffer stock, receivables or startup cash cycle; carrying expense is in items 104 and 120.		Buffer units/value; receivable/payable cycle; recovery timing
125Financing fees and incremental interest
Loan arrangement fees and transition interest only; loan principal is funding, not an expense; avoid duplicated carrying interest.		Borrowed amount over time; rate; fees; avoid interest counted elsewhere
126Landlord tenant-improvement contributionOffset
Collectible contribution applied to eligible work; input positive amounts and the formula treats them as an offset.		Signed work letter; eligible invoices; cap; reimbursement date
127Landlord moving allowance or lease buyout supportOffset
Documented reimbursement for relocation/exit costs; do not also net it from the vendor cost line.		Written allowance; eligibility; cap; payment timing; assignment
128Committed incentives and creditsOffset
Only verified, eligible incentive amounts and incremental free-rent value not already netted into rent; model timing and conditions.		Award/lease evidence; eligibility; timing; performance conditions
129Asset sale proceeds and insurance recoveriesOffset
Realizable net proceeds or committed recoveries; do not net them twice against costs.		Net sale/claim value; costs; collectible amount; timing
130Contingency reserve for defined uncertaintyReserve
A separately stated estimate reserve, not an already incurred expense. Do not duplicate risk allowances embedded in vendor quotes.		Risk register; scoped unknowns; basis; embedded quote allowances
Part 5Readiness checks
01

Part 5 · Readiness checks · Area 01 of 10

Operating requirements

Define the operation the building has to support.

R01What must this building handle on the busiest shift?
Why it matters An average-day fit can fail at peak.
EvidenceActual peak receipts, orders/lines, production units, staffing and operating hours; customer commitments.
Accept whenGM approves a defined peak design case and demand/growth scenarios; capacity review uses that case.
GM + operations · Before site commitment · Cost items 4,24,27,41-49,111-120
R02Which inventory actually needs a storage position?
Why it matters Nominal positions can omit quarantine, returns, staging and slow movers.
EvidenceSKU/lot profile; dimensions/weights; on-hand by status; seasonal peaks; special storage.
Accept whenLayout accounts for usable reserve/pick/staging/status positions and operating access; assumptions are recorded.
Inventory + warehouse manager · Before layout approval · Cost items 4,14,41-50,56
R03Which service promises and customer rules must survive the move?
Why it matters A functional building may still miss cutoffs, contract duties or customer approvals.
EvidenceOrder cutoffs; SLAs; 3PL customer terms; label/EDI requirements; visit/audit obligations.
Accept whenMove and startup plan supports agreed promises, or written exceptions are secured.
Commercial + operations · Before site commitment · Cost items 59,63-64,106-107
R04What stays, moves, gets replaced or gets retired?
Why it matters Ambiguous asset scope creates omissions and duplicate invoices.
EvidenceAsset register with IDs, ownership/lease terms, condition, OEM needs and disposition.
Accept whenEach asset has one disposition, responsible vendor and priced boundary.
Engineering + finance · Before vendor bids · Cost items 41-49,71-79,87,129
R05Are the move and stay alternatives genuinely comparable?
Why it matters A move can be blamed for upgrades the business needs either way.
EvidenceCommon horizon; realistic stay renovation; growth and service assumptions; landlord obligations.
Accept whenBoth alternatives support the same defined operation; different capability and residual-value effects are explained.
Finance + GM · Before approval · Cost items 1,7,111-130
02

Part 5 · Readiness checks · Area 02 of 10

Storage, fire and floor

Prove the storage design before the rack order.

R06Can the proposed fire protection support our actual goods and arrangement?
Why it matters Clear height alone does not establish permissible storage.
EvidenceCommodity and packaging profile; plastics/flammables/aerosols/batteries where present; storage height/layout; water-supply data.
Accept whenQualified fire-protection review, applicable authority approval and insurer requirements are resolved for the actual design.
Fire engineer + EHS · Before site commitment · Cost items 14,29,41-45
R07How many positions remain after all operating constraints?
Why it matters Brochure area and theoretical positions can overstate working capacity.
EvidenceDimensioned layout; columns; sprinkler clearances; egress; staging; returns/quarantine; aisle geometry.
Accept whenUsable capacity is calculated from the approved layout; seasonal peak fits at the team’s justified operating limit.
Warehouse manager + rack designer · Before layout approval · Cost items 4,11,41-50,56
R08Will reused rack be suitable, documented and approved?
Why it matters Reuse can require redesign, replacements and fresh anchorage/engineering.
EvidenceRack manufacturer/configuration; component condition; load plaques/design; new slab and seismic inputs.
Accept whenRack designer/engineer approves exact reused configuration, repairs and anchorage; required permit/inspection completed.
Rack engineer + operations · Before reuse commitment · Cost items 15,19,41-42,72
R09Does the slab suit the actual loads and handling equipment?
Why it matters The problem may be point load, flatness or vibration, rather than overall area.
EvidenceRack/equipment loads; machine vibration tolerance; slab records and testing; truck/forklift requirements.
Accept whenQualified design review confirms acceptable capacity and geometry, or scoped corrective work is budgeted.
Structural engineer + equipment supplier · Before site commitment · Cost items 5,19,24-25
R10Do trucks, loads and people fit the aisles and lift heights safely?
Why it matters Rack geometry must match the equipment and operating method.
EvidenceActual load dimensions; equipment turning/lift envelope; protection; pedestrian/egress plan.
Accept whenEquipment supplier and operations validate the intended routes/lifts; required safety review and training are complete.
Operations + EHS · Before layout approval · Cost items 41-49,95,100
03

Part 5 · Readiness checks · Area 03 of 10

Docks, yard and network

Docks, trucks and the network around the building.

R11Can the dock plan handle the peak inbound/outbound schedule?
Why it matters Door count can hide bottlenecks in time, staging and labor.
EvidenceArrivals by hour; unload/load dwell; doors allocated by flow; staging; appointment rules.
Accept whenPeak dock workload, yard and staffing are tested together using observed cycle times.
Transport + warehouse manager · Before site commitment · Cost items 4,27-28,101-103
R12Are docks compatible with the actual trailer and vehicle mix?
Why it matters Height, leveler rating and restraint compatibility affect safe usable doors.
EvidenceVehicle dimensions; trailer types; dock equipment ratings; restraint/chock plan; observed delivery mix.
Accept whenRepresentative vehicles and handling loads are reviewed; equipment and operating procedures are suitable.
Facilities + transport + EHS · Before fit-out approval · Cost items 27,49
R13Where do waiting, dropped and empty trailers go at peak?
Why it matters Trailer storage can be lost to parking, circulation or local restrictions.
EvidencePeak trailer count; dwell; drop policies; parking; fire access; shared-site rights.
Accept whenDimensioned, permitted yard plan accommodates the actual trailer/vehicle pattern.
Transport + facilities · Before site commitment · Cost items 12,28,102,112
R14Can trucks actually enter, turn and reach every needed door?
Why it matters A turning diagram must match vehicle size and daily access conditions.
EvidenceSwept-path review; gates; slopes; street approach; delivery restrictions; conflicts with other users.
Accept whenActual operating vehicle envelope is reviewed and trialed where feasible; access rights and restrictions are documented.
Civil engineer + carriers · Before site commitment · Cost items 11-12,28,75,112
R15What changes in the transportation network and delivery cutoffs?
Why it matters A rent saving may shift costs into drayage, mileage or missed delivery windows.
EvidenceActual origins/destinations; lanes; carrier rates; driver time; port/rail proximity; customer cutoffs.
Accept whenMove-versus-stay transportation estimate uses the expected volume/mode and service requirements.
Transport + finance · Before business-case approval · Cost items 105,112
04

Part 5 · Readiness checks · Area 04 of 10

Utilities and building systems

Power, process utilities and the date normal operation can begin.

R16Is required power deliverable by the startup date?
Why it matters Service size on a listing does not prove capacity, equipment availability or energization.
EvidenceLoad schedule; voltage/phase; demand and startup peaks; utility written scope/date; switchgear/transformer lead times.
Accept whenElectrical engineer and utility confirm deliverable service; dependency schedule includes energization and testing.
Electrical engineer + utility · Before site commitment · Cost items 6,16,31-32,40,114
R17Do process utilities meet equipment requirements at the point of use?
Why it matters A system can exist yet deliver insufficient flow, pressure or quality.
EvidenceOEM point-of-use specifications for air, water, gas, steam, exhaust and drainage; simultaneous demand.
Accept whenDelivered conditions are designed and tested against the actual process specifications.
Process engineer + OEM · Before equipment startup · Cost items 35-39,73,78-79
R18Can the facility hold required conditions under real load?
Why it matters An empty-room temperature test can miss people, machinery or refrigeration loads.
EvidenceHeat/moisture load; temperature/humidity needs; ambient design conditions; refrigeration duty; monitoring/alarm plan.
Accept whenSpecified conditions and alarm response are tested under a representative load and defined duration.
Facilities + quality · Before restart · Cost items 34,52-53,69,114
R19Are charging, fueling and critical backup systems ready?
Why it matters Equipment availability depends on charging capacity, safe setup and continuity design.
EvidenceEquipment/battery chemistry; charging pattern; loads; fuel arrangement; critical-load list; backup duration.
Accept whenSupplier/EHS requirements and applicable approvals resolved; charging and transfer behavior tested.
Facilities + EHS · Before occupancy · Cost items 20,40,47
R20Can normal operation legally and safely begin when planned?
Why it matters Construction completion, occupancy permission and operating readiness can fall on different dates.
EvidenceUse/occupancy approvals; building/fire inspections; applicable process permits; required closeout documents.
Accept whenRelevant authority conditions and safety-critical inspections are satisfied before the affected activity begins.
Facilities + EHS + advisers · Before occupancy · Cost items 12-15,20,29,59
05

Part 5 · Readiness checks · Area 05 of 10

Systems and inventory control

Wireless, systems and inventory truth.

R21Does wireless coverage work with the racks and inventory in place?
Why it matters An empty-building survey may miss shielding, roaming and device behavior.
EvidenceRF design; loaded-layout survey; actual scanners; roaming paths; exception zones.
Accept whenRepresentative pick/putaway tasks run without unacceptable dropouts; weak zones have a tested remedy.
IT + warehouse manager · Before cutover · Cost items 61,66-67
R22Can an order complete the full receive-to-ship process in the new systems?
Why it matters Individual screen tests do not establish end-to-end operation.
EvidenceReceiving, putaway, replenishment, pick, pack, ship, returns, labels, billing and exception scenarios.
Accept whenOperations witnesses successful complete flows and reconciles system/physical outcomes.
IT + operations · Before cutover · Cost items 50,63-66
R23Can every moved SKU, lot and status be located and reconciled?
Why it matters Stock can be physically present but unavailable or misclassified.
EvidenceTransfer IDs; source/destination locations; counts; lot/serial/expiry/status rules; discrepancy ownership.
Accept whenTransfers reconcile to agreed controls; discrepancies and holds are resolved before affected stock is released.
Inventory control + quality · Each transfer phase · Cost items 50,56,64,76
R24Do customer, carrier and billing interfaces still work?
Why it matters A 3PL can ship successfully yet fail customer messages or billing.
EvidenceEDI/API tests; shipping accounts; routing guides; address/site codes; customer notices; billing/event tests.
Accept whenRelevant customers/carriers approve required changes; messages, labels and billing reconcile in a test.
IT + account managers · Before cutover · Cost items 59,62-64,106
R25What happens if the system cutover fails?
Why it matters Recovery needs a tested procedure and defined inventory truth.
EvidenceBackups; rollback conditions; permissible manual process; restore steps; responsible team; reconciliation rules.
Accept whenA rehearsal demonstrates recovery; the decision owner and cutover/rollback deadlines are explicit.
IT + GM · Before cutover · Cost items 64-65,70,102,107
06

Part 5 · Readiness checks · Area 06 of 10

People and daily operation

The people who make the new building run.

R26Which key skills are at risk because the commute or job changes?
Why it matters Headcount can transfer while vital skills do not.
EvidenceShift/skill roster; commute impact; employee discussions; turnover risks; retention alternatives.
Accept whenNamed coverage for critical roles and an executable staffing/retention plan exist.
HR + operations · Before site commitment · Cost items 91-94,113
R27Can we staff every operating shift at the new location?
Why it matters A wage assumption needs a hiring and transport reality check.
EvidenceLocal recruiting evidence; pay/benefits; shift patterns; transport options; time to proficiency.
Accept whenStaffing plan covers the approved peak case and startup overlap with documented recruiting assumptions.
HR + GM · Before approval · Cost items 94,96,113
R28Are people trained for this equipment and this workplace?
Why it matters Prior experience may not cover new traffic, hazards, systems or procedures.
EvidenceRole-based training plan; workplace/equipment changes; safety/quality procedures; completion records.
Accept whenRequired training is completed and practical task competence verified before independent work.
Supervisors + EHS + quality · Before occupancy · Cost items 49,95-96
R29Are workstations and movement paths usable during an actual shift?
Why it matters Small ergonomic and replenishment problems can persist as labor cost.
EvidenceRepresentative tasks; reaches/lifts; travel distances; replenish routes; pedestrian conflicts.
Accept whenOperations and EHS review actual tasks; corrective actions are addressed or owned before restart.
Operations + EHS · Before layout approval · Cost items 4,21,43,48-49,100,113
R30Who owns first-shift problems and customer communication?
Why it matters Unclear authority can extend a small issue into service failure.
EvidenceNamed command team; escalation thresholds; shift coverage; issue log; customer update responsibilities.
Accept whenEach critical issue has an owner, escalation path and operating decision authority.
GM + supervisors · Before cutover · Cost items 2,98,106,110
07

Part 5 · Readiness checks · Area 07 of 10

Scope, contracts and sequence

Bids, contracts and the order of operations.

R31Does every vendor bid cover the same physical boundary?
Why it matters The cheapest proposal may omit essential work.
EvidenceScope matrix by asset/system: isolate, remove, transport, reinstall, connect, test, restore; exclusions and taxes.
Accept whenEvery handoff has one owner; inclusions/exclusions are priced once, including travel and premium hours.
Project manager + procurement · Before contract award · Cost items 7-10,30,71-80
R32Can leased or financed equipment be moved on these terms?
Why it matters Ownership and warranties can restrict relocation or dictate technicians.
EvidenceEquipment leases/liens; lessor approvals; OEM/warranty terms; move insurance requirements.
Accept whenRequired consents and approved methods/vendors are secured before disconnection.
Finance + counsel + OEM · Before shutdown · Cost items 9,71-80,125
R33Which long-lead items control the startup date?
Why it matters Calendar estimates fail when rack, switchgear, permits or circuits arrive late.
EvidenceConfirmed lead times; design approvals; orders; permits; utility/carrier dates; delivery dependencies.
Accept whenThe master schedule uses current supplier/authority commitments and assigns contingency actions.
Project manager + vendors · Before commitment · Cost items 2,13-16,29,31-32,41-45,62
R34Are construction and move access compatible with operations?
Why it matters Work that is easy in an empty facility may be slow or unsafe during live operation.
EvidencePhasing plan; access routes; work hours; isolation zones; contractor rules; live-site restrictions.
Accept whenConstruction/move sequence preserves approved operating and safety conditions; premium costs are scoped.
Project manager + EHS · Before execution · Cost items 2,30,72-79,96,101-103
R35Are landlord responsibilities and reimbursement terms explicit?
Why it matters A promised contribution is different from cash available before work.
EvidenceWork letter; delivery conditions; eligible work; invoice rules; caps; payment dates; surrender obligations.
Accept whenResponsibilities are documented; finance budgets timing and disputed/excluded items.
Broker + counsel + finance · Before lease execution · Cost items 9,21-40,81-90,121-128
08

Part 5 · Readiness checks · Area 08 of 10

Move and cutover execution

Interruption limits, buffers, waves and fallbacks.

R36What is the maximum tolerable interruption for each flow?
Why it matters A single company-wide downtime number conceals different customer/process limits.
EvidenceFlow-specific tolerance; critical customers/lines; recovery capacity; move-wave plan.
Accept whenEach critical flow has a planned outage, allowable limit, restart test and escalation decision.
Operations + commercial · Before move approval · Cost items 2,76,79,101-110
R37How much buffer is useful, where does it fit, and can it still ship?
Why it matters Extra stock consumes cash and space and may not protect the right orders.
EvidenceDemand by product/customer; shelf life; build capacity; storage/ship access; financing and expiry risk.
Accept whenBuffer targets match disruption risk and actual recoverability; principal and carrying costs are separated.
Planning + inventory + finance · Before buffer build · Cost items 56,101-105,108,124
R38Is the destination ready before the next machine or inventory wave leaves?
Why it matters Moving assets before services are ready can lengthen the outage.
EvidenceWave prerequisites: room/rack readiness; utility tests; labels/system setup; access; staffing.
Accept whenWave owner signs a defined destination-readiness checklist before release from the origin.
Project manager + operations · Each transfer phase · Cost items 31-40,50,61-79,101-110
R39How will shipments and assets be protected and traced in transit?
Why it matters Damage and misrouting create startup and recovery costs.
EvidenceLift/pack plans; asset/transfer IDs; carrier scope; condition photos; temperature/chain-of-custody needs.
Accept whenVendor/operations agree documented custody, condition, exception and claim procedures.
Move lead + carriers · Before load-out · Cost items 71-80,108,129
R40What is the fallback if a move wave or restart fails?
Why it matters A fallback must fit space, people, systems and contractual realities.
EvidencePartial old-site availability; backup fulfillment; rentals; supplier/OEM support; decision triggers.
Accept whenFallback capacity and terms are secured to the required extent; decision deadlines precede irreversible steps.
GM + project manager · Before shutdown · Cost items 81-82,101-107
09

Part 5 · Readiness checks · Area 09 of 10

Manufacturing and product quality

Performance and product quality after the move.

R41Will the moved machine meet its former performance and quality requirements?
Why it matters Powered on is not the same as producing acceptable output.
EvidenceBaseline cycle time; yield; dimensional/process tolerances; condition; test protocol; OEM requirements.
Accept whenAgreed startup/performance tests pass; deviations are resolved and authorized before production release.
Engineering + OEM + quality · Before production restart · Cost items 25,73-79,100,107-109
R42Can the new flow prevent contamination, mix-ups and wrong-status use?
Why it matters An efficient layout must still protect materials and product identity.
EvidenceProduct/process risk assessment; allergens; sanitation; zoning; material/personnel flows; status controls.
Accept whenQuality approves appropriate controls and procedures for the actual process and product.
Quality + process engineering · Before layout approval · Cost items 23,51-56,60
R43Are quality records and control systems current for the new operation?
Why it matters A move changes equipment, locations and procedures that may affect the control system.
EvidenceApplicable manufacturing/quality documents; calibration; training; change approvals; batch/lot controls.
Accept whenResponsible quality staff approve required changes and verification before affected activities start.
Quality + operations · Before production restart · Cost items 57-60,63-64,95
R44Can we hold product until testing and release are complete?
Why it matters Startup product can consume storage and cash before it is sellable.
EvidenceTrial-batch plan; required tests; lab lead time; hold space; disposition; release authority.
Accept whenTesting capacity, hold controls and release responsibilities are in place; working-capital timing is modeled.
Quality + planning + finance · Before trial production · Cost items 56-60,104,107-109,124
R45Have affected customers and certification bodies accepted required changes?
Why it matters Technical readiness may precede authorization to supply a particular customer.
EvidenceActual customer/quality agreements; required notices; audit/site-transfer terms; certifications/registrations.
Accept whenApplicable notifications, approvals and certificates are resolved or shipments remain controlled.
Quality + account managers · Before customer shipments · Cost items 20,59-60,106-107
10

Part 5 · Readiness checks · Area 10 of 10

Restart, closeout and funding

Restart, closeout and the money at the end.

R46Has the whole operation passed a representative stress test?
Why it matters Separate equipment tests do not reveal flow bottlenecks or interface failures.
EvidencePeak-case receive/produce-to-ship test; staffing; congestion; exceptions; quality and inventory reconciliation.
Accept whenGM approves results against predefined throughput, service, quality and safety acceptance criteria.
GM + operations + quality · Before full restart · Cost items 4,58,64,79,100,107,110
R47What must be handed over for reliable operation after the vendors leave?
Why it matters Missing settings, records or support can extend defects into routine downtime.
EvidenceAs-builts; manuals; passwords/access control; maintenance/spares; warranties; training; emergency contacts.
Accept whenNamed owners accept handover; unresolved defects have deadlines, warranty responsibility and interim measures.
Facilities + IT + operations · Before project closeout · Cost items 2,63-70,79,110,115,118
R48What exactly does the old landlord require to accept surrender?
Why it matters Assumed broom-clean delivery may not satisfy the actual lease.
EvidenceLease/work letter; written restoration agreement; condition photos; inspection dates; key/meter transfer.
Accept whenWritten scope is priced; inspections and acceptance evidence are arranged before lease expiry.
Facilities + counsel + broker · Before exit work · Cost items 9,81-90
R49Is the business loss valued without counting the same event twice?
Why it matters Revenue, idle payroll, extra labor and lost margin may describe overlapping effects.
EvidenceUnit contribution margin; recoverable backlog; avoided variable cost; incremental premiums; penalty/recovery treatment.
Accept whenFinance reconciles the disruption estimate to one defined economic-loss method and separate actual incremental spending.
Finance + operations · Before budget approval · Cost items 96,99-100,105-109
R50Can we fund the timing of the move, not just the net total?
Why it matters Deposits and delayed reimbursements can create a funding gap despite a sound project return.
EvidenceDated vendor/lease cash schedule; invoices; deposits; inventory; loan fees; reimbursement conditions; recoveries.
Accept whenFinance reviews funding by date and downside timing; no refundable principal is added again as economic expense.
Finance + project manager · Before spending commitment · Cost items 80,104,121-130
AppendixAppendix

Appendix

Southern California prices you can cite

Published authority fees with a defined scope, reviewed October 1, 2026. They price a study or approval step, not the installed operation.

RefPublished scopeJurisdictionPrice
P01Preliminary Capacity Assessment
Per study		SCE service territory$3,000
P02High-piled storage code/commodity compliance
PR330		OCFA jurisdiction$1,515
P03High-piled storage inspection only
PR330i		OCFA jurisdiction$583
P04Planning/development hourly rate
Per hour		OCFA jurisdiction$254
P05High-piled plan review, 50,000-100,000 SF
Fee 56		Ontario, California$1,428
P06High-piled inspection, 50,000-100,000 SF
Fee 48		Ontario, California$761
P07Annual high-piled permit, 50,001-100,000 SF
Annual; fee 8		Ontario, California$396
P08High-piled storage re-inspection
Per visit; fee 51		Ontario, California$427
P09Additional review after two submittals
Per hour; fee 62		Ontario, California$291

SCE: the PCA is planning information; the quoted study duration is not an energization date. OCFA: inspection-only and full review are alternatives where applicable, not automatic additions. Ontario: storage-area tiers and separate review, inspection and annual categories require an authority fee calculation. Design, construction and other permits are additional. [7, 11, 12]

Vendor planning ranges

RefReference scopeBasisPublished range
P10Local move for warehouse under 20,000 SFProject
Nationwide vendor; Irvine-based firm		$50,000-$150,000
P11Distribution center of 50,000-150,000 SFProject
Nationwide vendor; Irvine-based firm		$200,000-$600,000
P12Large 3PL or multi-site consolidationProject; and above
Nationwide vendor; Irvine-based firm		$1,000,000+
P13Selective pallet rack, material onlyPer pallet position
General US vendor guidance		$40-$150
P14Selective pallet rack, material and laborPer pallet position
General US vendor guidance		$75-$200

Warehouse ranges are from the 2026 warehouse relocation guide published by Relo-Strategies, an Irvine-based relocation management firm; the larger tiers do not fully itemize inclusions, so price construction, service upgrades, restoration and disruption separately. Rack ranges are general US guidance; material-only and installed are alternative bases, not two costs to add. [8c, 14]

Appendix

Verify the local requirement and the signed lease

Commodity storage comes before the rack order

OCFA identifies high-piled review for storage areas over 500 SF with goods higher than 12 feet, or 6 feet for high-hazard commodities. Have the authority and fire-protection designer review the actual goods, packaging, height and configuration. A generic 12-foot screen misses some operations. [11]

Power timing needs project evidence

Confirm required load, existing service, capacity, design, equipment availability and the service plan with the serving utility. Public research does not establish a universal SCE transformer delivery time or installed cost per amp. [7]

Surrender is a written scope

The posted 2019 draft AIR CRE single-tenant net form places ownership, removal and surrender in paragraph 7.4 and holdover in paragraph 26. That is a form example. Your executed lease, notices, approvals and amendments set the actual exit scope. [13]

Holdover has to use the contract’s rent basis

In that form, paragraph 26 raises base rent to 150%. For an illustrative 100,000 SF at $1.45 base plus $0.35 NNN, that is $217,500 of holdover base rent plus $35,000 of expenses, or $252,500 a month. Signed terms can differ.

Holdover is the most expensive line most budgets leave out. At the rates above, one extra month in the old building costs more than many line items in this guide combined. Put the surrender deadline on the master schedule, not just in the lease file.

Terms used in this guide

Cost above staying the net move cost minus what staying would realistically cost.

Contribution margin revenue minus the variable costs of producing it; the right measure of a lost order.

Commissioning proving installed equipment and systems work as designed.

Qualification documented proof a process consistently produces acceptable product.

Cutover the moment operations switch to the new site or system.

Wave one planned group of inventory, equipment or customers that moves together.

WMS / ERP warehouse management and enterprise resource planning systems.

OEM original equipment manufacturer.

NNN triple net: taxes, insurance and maintenance paid by the tenant.

3PL third-party logistics provider.

Appendix

Sources and how they were used

Public pages reviewed October 1, 2026. The checklist, schedule, formulas and dollar examples are this guide’s own synthesis.

[1] Justin Smith, Industrial Intelligence manuscript
April 2021 manuscript; new-site setup, physical move, old-site exit and comparison with staying. This guide expands that foundation into an operator inventory.

[2] JBA: facilities, relocation and sector project pages
Public vendor descriptions informed current-state flow, future layout, asset IDs, phased migration and interfaces. Wellington Foods case is vendor-reported and undated; case results are not benchmarks.
jbateam.com/relocation-managment

[2a] JBA: facilities design and engineering
Process/layout planning and design coordination.
jbateam.com/facilities-design-engineering

[2b] JBA: manufacturing and distribution
Vendor-reported manufacturing, consolidation and phased automation examples.
jbateam.com/manufacturing-and-distribution

[2c] JBA: food
Wellington Foods six-facility consolidation and process piping example.
jbateam.com/food

[3] NIST / MEP: PCC equipment relocation
Published October 29, 2024. Digital equipment/layout planning; $50,000 reported savings in this case.
nist.gov/mep/successstories/2024/efficient-facility-relocation-pccs-equipment-move-through

[4] FDA: food and dietary supplement CGMP overview
Part 117 and Part 111 framework and applicability distinctions.
fda.gov/food/guidance-regulation-food-and-dietary-supplements/current-good-manufacturing-p

[4a] FDA: dietary supplement CGMP small-entity guide
Plant/equipment, quality, production, records and holding controls informed sector checks. Actual applicability belongs with the quality/regulatory owner.
fda.gov/regulatory-information/search-fda-guidance-documents/small-entity-compliance-guide

[5] OSHA: warehousing hazards and solutions
Forklifts, docks, conveyors, ergonomics and operating hazards informed readiness questions.
osha.gov/warehousing/hazards-solutions

[6] FM: property-loss prevention data-sheet directory
Directory and commodity-classification material identify insurer/engineer review topics. Full site-specific sprinkler design was not evaluated.
fm.com/Resources/fm-data-sheets

[7] Southern California Edison: power requests
PCA study $3,000 nonrefundable; typically 20-30 business days after complete documents and payment. Planning information does not reserve capacity.
sce.com/partners/consulting-services/power-requests

[8] Relo-Strategies: preparation and vendor management
Public descriptions informed phased planning, estimate scope, vendor coordination and origin/destination workstreams.
relo-strategies.com/solution/preparation-for-relocation/

[8a] Relo-Strategies: vendor management
Bid and handoff coordination. Public marketing claims are not project guarantees.
relo-strategies.com/solution/vendor-management/

[8b] Relo-Strategies: industrial relocation checklist
Public industrial checklist and supporting sector descriptions informed review topics. The 130 items and 50 checks are an original synthesis.
relo-strategies.com/industrial-relocation-checklist/

[9] Relocation Strategies: services
Public move management, furniture/equipment and vendor coordination descriptions; firm is separate from Southern California Relo-Strategies.
relocationstrategies.com/services/

[11] OCFA: plan submittal guidance and fee schedule
High-piled storage review thresholds and posted PR330/PR330i fees, effective September 1, 2025.
ocfa.org/about-us/departments/community-risk-reduction/planning-development-services/

[12] City of Ontario: FY2026-27 citywide fee schedule
High-piled plan review, inspection, annual permit and re-inspection fees.
content.ontarioca.gov/sites/default/files/2026-06/FY%202026-27%20Citywide%20Fee%20Schedule

[13] AIR CRE: posted 2019 draft single-tenant net lease form
Surrender, restoration and holdover paragraph locations used as a form example only.
aircre.com/site/wp-content/uploads/2020/02/Commercial-Single-Tenant-Lease-Net.pdf

[8c] Relo-Strategies: warehouse relocation project management, 2026
Vendor-published warehouse move planning ranges (P10-P12); inclusions are not fully itemized for the larger tiers.
relo-strategies.com/warehouse-relocation-project-management-2026/

[14] Atlas Pallets: pallet racking cost guide
General US per-position rack ranges; material-only and installed bases are alternatives.
atlaspalletsllc.com/how-much-does-pallet-racking-cost

Vendor cases carry no implied independent audit, universal result or endorsement. Utility terms and published guidance change. Specialist quotes, approvals and signed project documents establish the actual requirements.

From the desk

Working through a stay versus move decision? Send the location, approximate square footage, lease timing and the operating constraint driving the decision. We will start with the real estate alternatives and, when the assignment calls for it, bring professional industrial engineers and move managers onto the team.

Justin
Justin Smith, SIOR
Senior Vice President and Principal
Smith Industrial Partners
Lee & Associates, Irvine
9838 Research Dr., Irvine, CA 92618
jbsmith@leeirvine.com · 949.400.4786

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