> []{}[]{}[]{}[]{}
In the phrase in this context,
> It is Person **A** who is (searching), and
>
> it is Person **B** who is (not there).
The above was your (only) mistake, but since it was a big one, it cost you the rest of the sentence.
One more thing. here means more like "to this degree", "as hard as this", etc. It does not really mean "until here".
My own fairly literal TL:
> "If we searched this hard and still couldn't find her, that would mean that the remaining possibility would be either the dojo or the storehouse."
Your understanding of is just fine. I just happened to use "that would mean" in my TL.