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That cheaper location might be next door. Or even on campus. Might also be cheaper to flatten the buildings and build new. Reno on old buildings is often more than building new.
Bold - that's very true because UAB rather to demolish the old building (even 60's/70's) because it is cheaper to build a new building with better, updated building code and more efficient for students.
The student union building (built in 1983) at UAB will be demolish in around 2015 because this building had many flawed design and very inefficient, also major renovation is very expensive, so they only made small renovation like paint and change the carpet, that all before demolish.