You have a lot of options, the existing shop and site and all the others you mentioned.
I would "value engineer" each, weigh in the advantages such as the site and so on, compare and then make a decision. There is nothing worse than a building that just does not function for an owners needs, let alone having drainage and site issues.
If the existing building site is ideal, you can improve the conditions of the site to perform as needed, then you can consider what may be salvageable, compare the labor to salvage against new construction costs. My point is, maybe you take a spread sheet, fill in all the blanks and see what pencils out. These are simple buildings with specific features you may want or need, nothing complicated, so you should be able to "pencil in" everything conclusive, then see what makes the most sense.
Ideally, you want that home and shop now, so you can make use of it, however none of us (or that I know live in anything remotely ideal LOL!)
So given its 24'x 24', common type of wood frame construction, you need to do a lot of work under it, is it worth the labor to salvage? That thing could be down very quickly and the remedial work to the site commenced immediately, and the only loss is the value of 30 year old lumber, of how much is compromised, vs new material and what, a few days or less, (depending on how its done) of labor to erect/frame it. That labor will easily cancel out with the labor to salvage, shore up, reinforce, jack, and then you still have to work around it. Concrete is already a loss, site has to be corrected anyway, shingles are done, as well as the doors, at a glance it would make sense to start from new.
If the existing location works with improvements, it may very well make sense to look at the obvious.
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