Pastors and church planters are finding storefront property increasingly attractive these days. The rising cost of land makes building cost-prohibitive for many, and the sluggish economy that forced many businesses to close, created a glut of vacant property, driving prices down.

Some of the property available offers the right mix of demographics and amenities that make them conducive to church.

An example, said Al Stone of Atlanta project management company CCL Associates, is the 500 or so Kmart stores closed in the last few years.

"Whether they have been there 10 years or 20 years, they didn't go out of business because of poor location," Stone said. "They went out of business because of poor management."

They were built because high demographics — traffic flow, accessibility, available parking and other considerations — were carefully examined to make sure a property was viable, he said.

"All of those issues apply to a church. Those are issues a church ought to look at before it starts spending a lot of money to build on a particular location," Stone said.

A Developer's Mindset

Church leaders should think more like developers when making decisions about facilities, he said.

About 10 years ago, as pastor of a church, he had an opportunity to buy a 70,000-square-foot store that had closed for about $1 million. About 40,000 square feet of the building was climate controlled and the property came with 750 parking spaces. To Stone, it was a perfect opportunity because the church was on the verge of real membership growth and needed more facilities.

"That would have been a great option for us as a church," Stone said. "Our property at the time was worth about $8 million. The facilities we had were probably about 15,000 square feet. We could have quadrupled into major square footage, but it would have meant selling our property. The problem was our church could not fathom relocating."

Despite his recommendation, the church opted to stay put. Since then, the property value has dropped to about half of what it was.

"That church has had two pastors since I left and they are still running what we were running when I left and they have not built a building yet," he said.

Temporary Digs?

Since most storefront churches are small, they are typically thought of as a temporary solution for a church. But that is not always the case, experts say.

"I guess in most church members minds, it is a temporary location until they get in a position where they can find a more permanent, formal place," said Bradford Grant, chairperson for the department of architecture at Hampton University in Hampton, Va. "But as you can imagine, many storefront churches are there for years and years. They just can't amass the money or property or whatever it takes to get out and build a new church."

George Thomason of the Southern Baptist Convention's North American Mission Board said his experience in planting churches leads him to believe a large number of churches will remain in storefront properties for many years.

"Probably — and this is not coming from research — as much as 10 percent to 15 percent stay permanently in that kind of setting," he said.

Stone said that rather than looking for a temporary solution, many churches are buying storefront property with plans to stay long-term. That is particularly true when the property involved is a large, free-standing building. Those properties can be modified to look less like a retail outlets.

"It's a lot easier to go in and buy a facility that would have cost $10 million to build and pay maybe $4 million or less," he said. "What they've got is equity in their property."

Fitting into the Neighborhood

Frequently, storefront churches elicit mixed reactions in the communities they serve. On the upside, they can infuse a positive influence in areas that may be suffering from urban blight. They occupy space that might otherwise be vacant.

In an article that appeared in The Atlanta Journal-Constitution, William Hudnut, senior resident fellow at the Urban Land Institute in Washington, said storefront churches tend to be good neighbors.

"They definitely supply a positive energy to an area," said Hudnut, former mayor of Indianapolis. "They stand for good things. They try to exercise a constructive influence on young people. They attract people. That's what a city is all about."

But many community government leaders are concerned about the loss of revenue when churches occupy storefronts that were designed for tax-generating retail operations.

Lee Walton with Robert and Co., a consulting firm that conducted a study on revitalizing Main Street in Forrest Park, Ga., told the newspaper storefront churches could hinder progress.

"A proliferation is a sign of an unhealthy downtown or main street economy," Walton said. "Retail grows off of retail."

Scrambling for Space

In areas where land for development is scarce and demand for existing real estate high, church leaders and planters can find themselves in the unenviable position of competing with businesses.

That is the case in Ft. Lauderdale, Fla., and surrounding communities encompassing a 28- by 37-square-mile area with a population of 2 million.

John Fleming, associational director of missions for Gulfstream Baptist Association, said there simply is no land on which to build in the area. Storefronts, he said, are all that are left for church growth.

"We've had churches that meet in a funeral home. We've got churches that meet in movie theaters. We've got churches that meet in schools and in recreation centers," he said. "We've got one church that started in a park in an open-air pavilion. We've done just everything you can do."

Despite all the challenges, he said more than a dozen Southern Baptist churches were started in the Gulfstream area last year.

"We've had some churches purchase shopping centers. Small ones — strip shopping centers," he said. "But, in south Florida that kind of property is extremely valuable."

He said undeveloped land, if it can be found, sells for about $1 million an acre and storefront property is priced accordingly.

"When you're in commercial zoning and you go to buy that kind of property, especially today with nothing left, everything in town, every business and every denomination, they're all clamoring for the same dirt and the same empty buildings," he said. "So, you've got a long line of competition."

Location a Godsend

As far as the Rev. Joel Rainey is concerned, divine appointment led him to the storefront location of his True Life Church in Greenville, S.C.

The Southern Baptist pastor recalls God gave him an opportunity to minister to two daycare employees. One day, when he stopped by to visit, he found a storefront the center had previously used as an after-school room was available to rent.

"In short, God presented it to us," Rainey said. "The strange thing about this facility was that it had been empty for over a year while we were looking. I suppose God was just holding it for us."

Most of the 50 or so who attend Sunday services at True Life are under 35 years of age. Because there are very few children (usually eight or fewer), the storefront location suits his members well.

"Although we have a great children's program that coincides with the morning service, it seems that young adults with kids aren't as attracted to our venue as to other, more (traditional) ones," he said. "I still believe that for more affluent couples with children, schools are the best choice."

However, Rainey said, storefronts probably offer better value.

"If you compare lease prices to the amount of time you get the building, then I would say storefronts are much cheaper," Rainey said. In Greensville, space in a school rents for about $860 a month while a storefront may cost about $1,000.

"The storefront costs more, but when you consider that you have that facility 24/7, you realize that it is much more cost-effective, and also much less labor intensive," because it does not require moving in and move out every week, he said.

Rainey is so sold on storefronts is convinced even established churches with their own facilities can benefit from the opportunities they afford by using them to reach out with new ministries.

"An established church can rent a site much cheaper in an area that is in decline, bring some revenue to that area, minister to the people in that area — especially young people — who would not otherwise darken their doors, and as a result make a difference in their communities," he said.