10Q: Church Real Estate Trends & Insights with Barry Willbanks
Faith-Based real estate comes with challenges and opportunities that often differ from traditional commercial property. From changing congregational needs and shared-use spaces to financing, property sales, leasing, and long-term facility planning, faith-based organizations benefit from guidance that considers both the real estate itself and the mission it supports.
In this edition of 10Q, Faith Space Finder’s 10-Question Series, we speak with Barry Willbanks, whose background spans ministry, higher education, real estate, and property investment. After earning his Master of Divinity from Harvard and serving as a pastor, Barry became a licensed Realtor and developed a focus on helping churches and other faith-based organizations navigate their real estate needs. Drawing on decades of experience working with religious communities, he shares his perspective on church real estate trends, common property misconceptions, changing uses for religious facilities, and the opportunities he sees ahead for faith-based organizations.
Q1: Tell us about yourself and your work – how did you come to focus on the faith-based church community.
It was serendipitous. The open door was a call from a pastor friend asking if I could sell his church property- they needed a larger facility and had found one. That one call ignited a specialty career in serving religious bodies and their unique needs.
Q2: What drew you to this space, and what keeps you engaged in it?
The combination of novelty and my comfort in serving others. Over the years I’ve worked with dozens of ethnic and unique faith groups. Plus, I genuinely love learning about other faiths and religious groups.
Q3: What’s the most common misconception churches or faith-based organizations have about their real estate or facilities?
The biggest misconception is that any broker can handle the unique challenges of transacting religious-use properties. They can’t. An experienced church broker like Lee and Associates anticipates the pitfalls and educates their client for a more confident outcome.
Q4: What do you wish more congregations understood before they buy, lease, or build?
Two things. First, Know your borrowing power. This reality will affect the size of your down-payment and other terms. Second, knowing if the subject property has or qualifies for a valid use permit. Skip that step and you’re one misstep from a financial disaster.
Q5: How has the physical use of faith-based organizations been changing?
Congregations gather less often and more briefly than before. AM and PM services use to be standard. Now, the struggles of commuting, youth sports, retail sales, and day trips curtail the size, length, and frequency of group gatherings.
Space-sharing among faith groups on a schedule is now common. Economically, this provides a cash flow for the owner and an affordable space for groups that do not yet own a property.
Faith-based properties are being repurposed. Example: fewer classrooms, more coffee-bar mingling space. Gym, parking structures, ground-floor entries, and elevators to upper-floor worship space are new expectations.
Mergers are on the rise. Two groups sometimes unite – one with an underused property and the other with a bourgeoning congregation without a home. Together, they solve both problems.
Q6: What trends are you seeing in the faith-based property market right now?
- Older established congregations are shrinking while becoming less able to maintain their properties.
- Surplus and under-utilized spaces are being monetized to support remaining programs.
- Joint ventures between “land-rich” religious groups and developers focused on subsidized housing or even market-rate housing.
- Leasing space to non-church tenants such as daycares and private schools. This can be profitable but comes with the challenges of the day-to-day management of non-parochial groups.
- Faith-based buyers are increasingly ethnic minorities, while sellers tend to be America’s historical majority.
- Lease-to-own and long-term leases can work instead of outright ownership.
- Warehouses are popular for adaptable configuration and cost efficiencies.
Q7: How are broader shifts reshaping how faith-based communities are using their spaces?
I have noticed a rise in “ministries” settling into communities in place of traditional “churches”. Example: a ministry offering a variety of services such as tutoring, worship, meals, distribution of food and clothes, skill-teaching, and sports.
Q8: Where do you see the biggest real estate opportunities for faith-based organizations in the next few years?
Mergers make better use of limited facilities. Shared ownership will preserve facilities for longer life. The goal is more vital congregations with stronger leadership.
Q9: If you could give one piece of advice to an organization navigating a property or space decision, what would it be?
Assemble a “dream team” of open-minded stakeholders who know the realities of their present property and future needs. The “team” can explore the options and opportunities that turn the “dream” into reality.
Q10: Outside of work, what’s something that energizes you or a cause that you’re passionate about?
As a former professor, teaching never left me – I still like to teach adults regularly at two churches and serve on an Advisory Board for The Salvation Army.