Church survival mode: Leveraging real estate to create new income

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It began with the boiler, which stopped working in 2020 – and then a cascade of maintenance problems, including the windows that fell out of their frames from the third-floor preschool.

Fixing it all wasn’t financially feasible. And Pastor Alice Tewell knew that her Arlington, Virginia, church was at a crossroads experienced by thousands of American churches forced to reevaluate the purpose and value of their properties.

Why We Wrote This

A story focused on

Shrinking church congregations are finding ways to preserve their physical place in the community by thinking innovatively about uses of their real estate. Part 1 of two.

More than 75 American churches of various denominations close their doors every week, estimated a 2019 report by the United Church of Christ’s Center for Analytics, Research & Development and Data. Shrinking memberships and oversize, aging buildings drive these closures.

“In recent years, dozens of churches have found a number of ways to expand the use of their buildings and land for community benefit,” says Mark Elsdon, editor of the book “Gone for Good? Negotiating the Coming Wave of Church Property Transition.” He says solutions include “building affordable housing, creating new business incubators within their building, expanding food pantries into co-op groceries, opening church kitchens to food-based entrepreneurs, launching new early childhood education centers, and more.”

It began with the boiler, which stopped working in 2020. Related pumps, pipes, and hoses were also replaced at Clarendon Presbyterian Church, but there were still frequent leaks in the basement. The treasurer warned that the repair needed wasn’t financially feasible. The internet stopped working when it rained, leading to the discovery that the entire building needed to be rewired. Then one night in 2022, the windows in the third-floor preschool fell out of their frames and into the parking lot below.

Pastor Alice Tewell knew that her Arlington, Virginia, church was at a crossroads experienced by thousands of American churches forced to reevaluate the purpose and value of their properties.

More than 75 American churches of various denominations close their doors every week, estimated a 2019 report by the United Church of Christ’s Center for Analytics, Research & Development and Data. Shrinking memberships and oversize, aging buildings drive these closures.

Why We Wrote This

A story focused on

Shrinking church congregations are finding ways to preserve their physical place in the community by thinking innovatively about uses of their real estate. Part 1 of two.

Some congregations manage to stay in their churches by sharing their sanctuaries with other congregations, renting out unused space, or having only part-time clergy.

Others have found unusual solutions for financial stability. St. Bartholomew’s in New York City sold the air rights above the church for $78 million this year. The Arlington Temple United Methodist Church was an early model: Nicknamed “Our Lady of Exxon,” the church was originally built in 1970 with a rental space – a gas station – on the ground level below the steepled sanctuary. Most churches don’t have such valuable real estate assets, however, and many want their properties to continue to serve their communities in a way that matches their mission. In 2012, the Baptist Church at Clarendon here in Arlington built a 10-story building that included condominiums, 60% of which are for low-to-moderate-income residents. The church sanctuary occupies the bottom floors. 

“In recent years, churches have found a number of ways to expand the use of their buildings and land for community benefit,” says Mark Elsdon, editor of the book “Gone for Good? Negotiating the Coming Wave of Church Property Transition.” He says solutions include “building affordable housing, creating new business incubators within their building, expanding food pantries into co-op groceries, opening church kitchens to food-based entrepreneurs, launching new early childhood education centers, and more.”

In 2012, the Baptist Church at Clarendon completed the transformation of its original building into a 10-story condominium. The church occupies the bottom two floors, and 60% of the units are for low-to-moderate-income residents of Arlington, Virginia.

Church real estate offers myriad other uses

One example can be found in the Russell neighborhood of downtown Louisville, Kentucky. There, St. Peter’s United Church of Christ reached out to the UCC Church Building & Loan Fund for a $1 million loan to tackle the worst of the deferred maintenance on its 1895 church.



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