It should be no surprise that I have continued interest in the church development industry. After spending the past 23 years serving the development needs of churches, I have a deep passion and interest in the development of the right ministry space for churches. Heck, most of my best friends are in that industry.
SO…I decided to conduct a very scientific survey as to the status of church expansion, building and development projects. What is happening? Are churches still building? Are churches still designing projects? Are they doing capital stewardship campaigns?
This “very scientific” survey was conducted on August 5th and 6th by me sending out an e-mail to an undisclosed group of professionals in various fields of endeavor that specialize in church design, construction, stewardship and other related industries. These are people with whom I have great respect and whose firms are passionate about furthering the Kingdom through their efforts and specializations.
I asked 5 specific questions:
1. Are you starting to see any new activity of churches inquiring about your services?
2. If so…are any buying or just exploring?
3. Are you seeing any trends in the price range/scope of projects….meaning, are project sizes being reduced?
4. Are you seeing more renovation than before?
5. What is the most common “reason” you are given for projects being delayed or put on hold?
I received the following responses:
1. Are you starting to see any new activity of churches inquiring about your services?
Seeing numerous conversations but still with a pause before pulling the trigger. Brad Leeper, Generis www.generis.com
More are reengaging in discussion but it seems to be more remodel and smaller scope. Randy Ongie, Cogun, Inc. www.cogun.com
New, just one. We have three contacts with schematic designs that are stretching out further and further, keeping from committing to move into design. The new lead is for a sizeable sanctuary and school auditorium. Afraid to even explore the idea of a new campaign because of economy. Brian Felder, Greenline Architecture www.greenlinearch.com
2. If so…are any buying or just exploring?
Exploring – still cautious. Pat Kase, Cogun, Inc www.cogun.com
70% exploring 30% buying David Dial, Living Stones Architecture www.livingstonesarchitecture.com
All appear ready to buy; in two cases, financing seems available. Fear is making one move terribly slowly, and a lack of information, or I should say a lack of willingness to listen to us with respect to program and financing (lack of trust, maybe.) Of the two that appear to have funding and desire, one is weighing the possibility of acquiring new land vs. infill on existing site. The second has to go thru zoning appeal process to expand. All three use their fears of the economy as an excuse to move SLOWLY. Brian Felder, Greenline Architecture www.greenlinearch.com
I find most are serious about doing something. Michael Janaskie, GJS Architects www.yourchurcharchitect.com
3. Are you seeing any trends in the price range/scope of projects….meaning, are project sizes being reduced?
Yes, everything is being scaled back. Alan Wildes, Generis www.generis.com
No – these churches would delay entirely before reducing scope = not building for building sake. Pat Kase, Cogun www.cogun.com
Smaller, short turn around type projects. Looking more at adaptive reuse than new construction. David Dial, Living Stones Architecture www.livingstonesarchitecture.com
4. Are you seeing more renovation than before?
I have not seen an increase in renovation as a stand alone project, but more often as a component of a larger construction project. Wiley Brown, Edifice, Inc www.edificeinc.com
Yes quick impact and more ‘front of house’ type areas. Places visitor’s see full impact of. David Dial, Living Stones Architecture www.livingstonesarchitecture.com
Yes. The purchase of a big box and renovation seems the growing trend since commercial real estate is depressed in cost. Brad Leeper, Generis www.generis.com
5. What is the most common “reason you are given for projects being delayed or put on hold?
Fear. Uncertainly in planning because most of the boundaries have changed. Brad Leeper, Generis www.generis.com
Perceptions of down economy Pat Kase, Cogun, Inc www.cogun.com
Fear of the economy; can’t get funding because of too much current debt or the project is too large. Alan Wildes, Generis www.generis.com
The reason for delay is “wait and see” how the general economy does and what that means for increased employment, but the increasing attendance is driving them to plan for, or at least think about, facilities expansion. Wiley Brown, Edifice, Inc www.edificeinc.com
It is very hard for churches to get loans and they are still nervous about the economy and giving. Most projects are on hold because of softness in giving especially to a capital campaign. Randy Ongie, Cogun, Inc. www.cogun.com
Fear of economy, even though internal giving is up. Using this as an excuse to move painfully slowly. Brian Felder, Greenline Architecture www.greenlinearch.com
Afraid to go into capital campaign to raise money, due to the economy. David Dial, Living Stones Architecture www.livingstonesarchitecture.com
So…what does this mean? Here is what I think…
1. Churches are still living in fear of the economy…even if the media says we are coming out of the recession. (We may be coming out of the recession…but can we survive the recovery)
2. Churches are growing….they will need to accommodate that growth…but it may be in different means and methods than we have seen in the past.
3. Church leaders are starting to “think” about how to handle the growth…and building/renovation projects “may be” one way to address that so they are kicking tires.
4. We need church leaders to lead…cast vision…set the pace…obey the scriptures and do not live in fear or worry.
OK….enough of my soap box…what would you say from your soap box….join the conversation
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Alan Wildes
Tim, very good information my friend. Great idea on your part. I will certainly pass this along to my clients and potential clients.
I would add to some of the comments regarding soft giving to capital campaigns or fear of soft giving to capital campaigns. i worked with three churches this spring (2009) and the results were in or very close to the 2 to 3 times over and above operating budget range that has been in place for over 20 years in the capital campaign industry. I had the following multiples:
1.9
2.6
2.8
Most churches would take that giving in the boom of the recent economy of 2007, but in these times these numbers are wonderful.
People will give to the following:
1. Clearly Communicated Vision
2. Evidence that their giving will impact the Kingdom
So, to all the church leaders out there considering building; do those two things and your people will give.
Alan Wildes
August 11th, 2009 at 12:17 pm
Jason Lewis
good stuff. wise counsel. thx.
August 11th, 2009 at 8:01 pm