EXCLUSIVE -Excerpted Interview between Globe Street &-Gary DeClark-

Churches: Not Just Steeples and Clapboard Anymore By Amy Wolff Sorter | Houston

Lakewood Church in Houston, formerly Compaq Center, a professional sports arena.

Last Updated: August 19, 2013

HOUSTON-A recent retail report indicated that the retail vacancy slipped below 7% area-wide. What was interesting

about this trend, according to this report, is that religious organizations are leasing some of that retail space.

"Churches have been leasing retail space as overflow, and also for expansion purposes This seems to be a trend

for church groups interested in branching out into Houston suburbs. "They may not lease for a long time, but for long

enough to put together a congregation, then branch out into the suburbs.

Higher Power Re-Purpose

The most well-known example of a Houston church repurposing a property for its own uses is Joel Osteen's

Lakewood Church, which is housed in what was once the Compaq Center, home to the Houston Rockets NBA

team, as well as other professional sports teams. But Houston is not alone in the religious real estate repurposing

trend. Experts tell GlobeSt.com that, for many reasons, religious organizations are finding retail space – and even

warehouse space – preferable to buying and building when it comes to expansion.

Gary DeClark, managing director with Chicago METRO- Integra Realty Resources points out that this trend isn't

exactly a new one, but it does seem to be increasing. "I'm seeing it on multiple levels and with multiple

congregations, from the storefront missionary Baptists, to large warehouses containing mega-churches and

everything in between," he observes. Many times, he continues, the church organizations will rent large spaces,

such as warehouses, then buy them.

Ridge Community Church took over a former Walmart store in Greenfield, WI.

Other than economics, other reasons have driven the retail/church trends. DeClark points out that religion-specific

real estate can be difficult to re-adapt when it comes time to sell. For example, "a Muslim mosque requires a center

area for kneeling, compared to a Catholic church, which has a lot of ornate appointments, stained glass and pews,"

he says. "Adaptations between religious buildings are difficult," DeClark says. "Plus it's easier to walk away from a

lease than it is to walk away from an owned building."

Plus, shopping center locations tend to be more comfortable for potential parishioners who aren't used to attending

churches. Being in a shopping center or former movie theater gives churches a new way to deliver messages.

It doesn't mean, however, that a religious organization has an automatic "in" when it comes to repurposing of space. DeClark points out that zoning can be an issue. Furthermore, while congregations might want a shorter lease, landlords might not be amenable to that desire.

Park, Pray & Purchase?

Churches can use a lot of parking, and not provide a whole lot of benefit for other tenants. It is said that churches

have worship on Sundays and maybe something on Wednesdays. But many churches go beyond the Sunday-only

usage. Sometimes they have events, or mid-week services. And following those activities, "they're going to the

grocery store, or looking at shoes or the local Hallmark store in the center. What's happening is that people are

coming to the church, then going to the shopping centers.

The experts believe that the religious organizations will continue being creative with different types of space,

especially the retail side of it. "I don't see this slowing down any time soon," Foret comments.