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Your Road Ahead

Think of your church property expansion like a Roadmap.

Your vision for the future of your church is the destination. The road between that vision and where you are now can be long and even hazardous for inexperienced travelers.

CFS has helped shepherd churches of all sizes safely and successfully along their journeys. Every expansion project follows an established route with familiar milestones and a few well-known obstacles you can avoid with the right co-pilot.

We Know the Route (and Even a Few Shortcuts)

Whether it’s a ground-up development upon an undeveloped land site or acquiring an existing building to renovate, CFS has the answers to your questions. The travel plan below details the recommended route for a successful church property expansion.

If you haven’t journeyed along this route before, you’re in good company; most church leaders haven’t led building expansion and real estate development projects.

You may want an experienced guide who knows the road well, who has traveled it successfully before, and who can help you navigate the unexpected challenges. Scott McLean and Church Facility Solutions are Kingdom-focused allies to lead your church forward.

CFS believes that the local church is the greatest force for hope and transformation. That’s why we focus on these Kingdom projects - bringing decades of commercial real estate expertise and our extensive network of best-in-class contractors to our church clients.

We lead growing churches toward the facility God intends its church to have so its leaders can focus on changing lives in its community.

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If your church has attained 300 weekly attenders, 2 regular weekly services, $500K annual giving income, and 3 full-time staff persons, then click the button below to book a free Discovery Call at a time that works best for you. We look forward to speaking with you!

You may access our online resource library to discover tools designed to help you successfully plan and execute your church expansion project.

Keep Reading to See What’s on Your Road Ahead

(We have added helpful definitions for key property development terms below. Click the links for more insight.)

Phase 1

Envision Your Future Facility

God implants the future vision into the church’s leaders. Your challenge is bringing it to life.

Church Facility Solutions (CFS) helps you conceptually articulate the future facility program (building size, layout, cost, location), the project funding (fundraising, debt financing), and a likely projection timeline (schedule).

CFS can help you shape your expansion vision into a realistic, achievable, and executable plan—your Facility Goal. This starts with an understanding of your ministry needs and goals for worship, teaching, discipleship, recovery, fellowship, and evangelism.

Every successful church expansion plan includes the financial feasibility, initial property alternatives investigation, an estimate of total project costs, cash flow and master schedule that informs when the project can commence. We have practical tools that you can download from the Resources page of our website at www.churchfacilitysolutions.com/resources which will help guide your planning.

The plan predicts future donations, future attendance and giving, future church operating income & expenses, and future property operating expenses for the new church facility. Each component is critical for the directional team, guiding board, prospective donors, lenders, community stakeholders, and others to know. CFS can collaborate with you to estimate each.

Finally, assembling a project team of the most capable professionals with previous church expansion experience is paramount.

Financial Feasibility

What is your future church project target—size, cost, and timing? Understanding your church’s capacity to accomplish an achievable project based on future attendance (# seats) is the starting point. Predict the total project cost your church can afford, the amount your church will likely raise in a well-organized capital campaign, and how much debt your church can qualify for. Setting achievable parameters up-front gets your project started on the right foot.

Property Alternatives

While your church is not yet ready to acquire property, you must still learn about property types, sizes, locations, and the acquisition costs to solidify your vision and inform the Phase 1 project scope and cost.

Total Project Costs

Estimate the likely total project costs including the property acquisition, design/engineering costs, hard construction costs, other soft costs, financing costs and outfitting (furniture fixtures, equipment) costs presented with multiple line items in an excel spreadsheet.

Cash Flow

Create a spreadsheet showing monthly cash inflows from donations, retained income, and cash outflows from monthly project expenditures that inform the project schedule and when the church is ready to commence the project. Starting too early may require pausing the project which negatively affects momentum.

Master Schedule

The Master Schedule shows the entire project, not just the construction. It includes the initial vision meeting, establishment of the Building Committee, periodic meetings with staff and directional team, capital campaign, property acquisition, municipal entitlements, team selection, design, construction and the Grand Opening!

Future Donations

We have observed many fundraising efforts preceding future expansion projects, so we’re equipped to help you estimate an attainable yet conservative range of giving you can expect for a 2-3-year capital campaign.

Future Attendance & Giving

Consider past attendance (adults and children), giving history, future facility vision, your appetite for multiple services, and congregation and community demographics, then predict future attendance and giving. You and your leaders vet all projections before they become targeted goals.

Future Church Operating Income & Expenses

From the foregoing giving projections, predict future operating revenue, expenses, and debt service and show how and when the church can increase staffing, payroll, and programming expenses to accommodate new growth. Include a debt payment plan showing timing to retire the debt during the growth spurt years.

Future Property Operating Expenses

We can help you predict the cost of operating the future property as part of your church’s future operational expenses including maintenance, insurance, utilities, janitorial, replacement reserves, etc.

Project Team

Perhaps the most critical aspect of any successful project is assembling the best people to execute. For example, we recommend hiring an architect who regularly attends church and understands the experience attenders have from arrival to departure. CFS can help source the most qualified professionals, lead the selection process (requests for proposals, interviews), business negotiations, and contracting (in tandem with the selected attorney).

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Road Signs

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Road Signs

In this early planning stage, churches and their leaders face challenges as described in the following frequently heard statements.

  1. We have outgrown our building, know we need to relocate, but we don’t know where to start.
  2. We have some dreams about our future and how we could grow our campus, but we’re unsure how to evaluate our wants versus needs.
  3. We think we should hire an architect to help us determine the building we desire but realize we first should know what our budget will be.
  4. We saw a property for sale, contacted the broker, have been looking at possibilities, but realize that we are a long way away from being ready.
  5. We want to make our facilities available and welcoming to our surrounding community, but we're unsure how to balance serving our congregation with creating a space the community will want to use.

Does This Sound Like You?

If you recognize any of the statements above, you can benefit from our church property development expertise.

If your church has attained the following milestones, we will offer you a free consultation:

  • At least 300 weekly attenders
  • At least 2 regular weekly services
  • At least $500K in annual giving, and
  • 3 full time staff persons.

Call us at 800-200-2089, email Scott , or click the button below to schedule a free consultation, and get started today.

Ask about our new Church Property Expansion Workbook, a comprehensive resource that shows you and your team the critical components for executing your church expansion project. Click here for a preview.

Phase 2

Acquire Real Estate

Whether you are considering renovating an existing building or constructing on an undeveloped land site, CFS can guide you as your buyer broker, or we can work hand in glove with your previously selected broker. Knowing what you can afford (Phase 1) informs which type of real estate investment will best suit your current and future needs. Then we source properties both on and off the market. When the shortlist is created, CFS can help you evaluate what design, municipal entitlements, and construction is required. Once under contract, your broker must lead the due diligence investigations so that all eyes are open to the property’s opportunities and challenges (and costs) before a closing occurs.

Existing Building

CFS recommends that a church first seek to acquire an existing property before considering land to develop from the ground up. The cost to renovate can be less and the time to complete shorter. Existing buildings generally offer the best locations. Good access and adequate parking is essential. Property types include retail, retail box, former theaters, former schools, flex industrial buildings, office buildings, etc. Be aware that the cost to convert a previous use to an “assembly” use is high.

Undeveloped Land Sites

Land is complex and must be carefully evaluated to estimate the costs to prepare it for vertical development. The land must be properly zoned to allow for church use. Since a church is a destination, suitable land options require only limited visibility but easy access from a primary arterial street. We recommend that an architect complete a site “test fit” to be sure it will accommodate your church well into the future. Along with your chosen civil engineer, CFS can coordinate the necessary entitlement tasks (with the municipality) to secure the development plan approvals needed to develop a church upon the land.

Buyer Broker

With decades of experience, Scott McLean can help you acquire your desired property or he can work hand in glove with your previously selected brokerage professional. Since knowledge is power in any negotiation, learn about the property’s deficiencies, the costs to construct, and recent property sales prior to negotiating the final purchase price. With his experience developing all types of commercial properties, an understanding of zoning and land use issues, and having the resources to learn recent comparable sales prices, Scott McLean will help you achieve the lowest possible cost.

Source Properties

Start first with a search of available alternatives from subscriber databases (such as CoStar or CREiX). Typically there are few options, so then identify properties that fit the location, size, and parking, then reach out to connect with each owner. Occasionally you’ll turn up an off market property option. The church should broadcast its need for an existing building or land to develop. Should a desired property not allow church use “by right”, then CFS can help you determine the likelihood of re‐zoning success and guide a campaign to secure approval.

Municipal Entitlements

If you develop land from the ground up, you’ll need approval from the governing municipality for your site development plan showing the location of the building, storm water detention, roads, utility connections, parking, etc. CFS works closely with the chosen civil engineer to affect the best layout and to negotiate the most favorable arrangements. Once a concept plan is prepared (architect or civil engineer), you should apply for a pre-application meeting with the municipal planning staff to learn what requirements will be necessary to obtain site plan approval and eventually a building permit.

Due Diligence

Once under contract, arrange a thorough inspection of the property including obtaining a new ALTA survey, Phase 1 environmental site assessment, title records (commitment), seller property disclosure and past maintenance records to name a few. Require the Seller to replace or repair deficient items. CFS offers a complete checklist for this process, so you don’t forget anything, as part of our Church Building Expansion Toolkit. Once the inspection is complete, update the project scope and revise the future total project costs.

Road Signs

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Road Signs

Churches seeking to acquire an existing building should expect extensive renovations to meet building code requirements for an assembly use. Undeveloped land is complex and must be carefully investigated for suitability.

Do any of the following comments sound familiar?

  1. We have spoken with a couple real estate agents, but we are unsure whether to seek undeveloped land or try to find an empty big box.
  2. We often get excited about properties that are available to purchase but realize it's too soon to get serious.
  3. We are interested in an inexpensive land site but do not know how to evaluate it or whether it would be wise to purchase it.
  4. We know people in the city and are confident we can get their approval easily.
  5. We found a building that we can move into without many changes necessary.
  6. We like one particular building but we’ll have to change the zoning.
  7. That warehouse building is perfect because there are no walls to demolish.
  8. We’re not sure how to handle our new growth before we move into the new building.
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Does This Sound Like You?

If you recognize any of the statements above, you can benefit from our church property development expertise.

If your church has attained the following milestones, we will offer you a free consultation:

  • At least 300 weekly attenders
  • At least 2 regular weekly services
  • At least $500K in annual giving, and
  • 3 full time staff persons.

Call us at 800-200-2089, email Scott , or click the button below to schedule a free consultation, and get started today.

Ask about our new Church Property Expansion Workbook, a comprehensive resource that shows you and your team the critical components for executing your church expansion project. Click here for a preview.

Phase 3

Funding Your Project

Knowing what your new church facility will cost informs the financial resources you’ll need in the form of savings, new fundraising, and borrowed capital (loan). When your equity and debt resources are eventually secured, your church is ready to make the down payment for the new loan, close on the acquisition of your new property, and begin the project execution as described in Phase 4 below.

Savings

You’ll need between 25%-50% of the new church facility costs in cash to supplement a future loan. Perhaps you have cash in the bank and equity in real estate or other assets that can be accessed. This is a great start. The remaining portions will come from a well organized fundraising campaign. If you have a property to sell, CFS can lead the marketing and sales effort as your selling broker or assist you in hiring and overseeing a local real estate broker.

Fundraising

To achieve two to three times your annual giving in new pledges, select a fundraising organization with a proven approach providing key strategies, communication structures, teaching ideas, and ongoing coaching. Expect several months to organize, communicate, present, and conduct a teaching series prior to pledge Sunday. Most expansion projects begin in earnest a few months after completing a fundraising initiative.

Loan

Debt could allow your church to arrive where it’s already headed… faster. Carefully consider the amount of debt you can afford so your church doesn’t get into harm’s way. To achieve the best results, create an attractive lender package, source church qualified lender candidates, and negotiate the most favorable loan terms possible. Finally, create a loan retirement plan to pay it off during the upcoming growth years.

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Road Signs

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Road Signs

Churches and leaders ready to gather resources may face a range of challenges. Do any of the following statements sound familiar?

  1. We’re still a young church and don’t know if we are ready for a building expansion.
  2. We’ve always needed every penny that comes in the door, so we’ve not yet begun to save money for our future needs.
  3. Our people are wonderful supporters; however, I’m unsure how to cast the vision for a financial commitment like a new building or expansion project.
  4. We have watched other churches launch capital campaigns; some were highly successful, others weren’t. We see similarities to our church, but we also know every congregation is unique—a strategy that works at another church may not work here.
  5. Our budget always seems to work out, but we don’t know how to plan for a large-scale project like a building expansion.
  6. We don’t think borrowing money is wise nor biblical.

Does This Sound Like You?

If you recognize any of the statements above, you can benefit from our church property development expertise.

If your church has attained the following milestones, we will offer you a free consultation:

  • At least 300 weekly attenders
  • At least 2 regular weekly services
  • At least $500K in annual giving, and
  • 3 full time staff persons.

Call us at 800-200-2089, email Scott , or click the button below to schedule a free consultation, and get started today.

Ask about our new Church Property Expansion Workbook, a comprehensive resource that shows you and your team the critical components for executing your church expansion project. Click here for a preview.

Phase 4

Project Management & Execution

Once you’re confident about the timing to receive the required funding (fundraising and new loan), complete the final cash flow spreadsheet showing when the project execution can begin. If you have not previously hired an owner’s representative, then now is the time. Thankfully, you're finally ready to complete the final design, pre-construction estimating, municipal entitlements, construction, interior outfitting and be on your way to your final destination.

CFS encourages church leadership to keep its congregation fully informed every step of the way with routine communications even during the project’s challenging moments. This is a journey that will unite your entire church family!

Final Cash Flow

Utilizing the consolidated financial spreadsheet from Phase 1, revise and finalize the total project cost estimate worksheet, then complete the cash flow worksheet. Add the expected receipts of fundraising pledges, retained income, future loan draw requests; paired with estimated future expenditures (soft, hard and outfitting costs). Don’t begin the project without confidence that you have sufficient cash as evidenced by positive monthly ending balances. Momentum is critical to success and stalling a project that has already begun is devastating.

Owner’s Representative

Your guide, advocate and project manager is invaluable, showing shortcuts and saving you time and money from inexperienced decisions that occur without expert advice. Your OR oversees all project tasks performed by others. Your OR also creates the entire project schedule (now until Grand Opening), the total project budget (not just hard costs), and oversees invoice payments, lien waivers, and much more. As your advocate, your OR resolves problems, approves changes during construction and stays involved until every punch list item has been completed to your satisfaction. It’s a ton of responsibility!

Pre-Construction

At each step of the design, your GC provides an updated cost estimate assuring hard costs align with the affordable budget. Usually, costs come in higher, requiring creative brainstorming (value engineering) by the designers, contractors, OR and church. Once a final cost estimate is agreed upon, it becomes the guaranteed maximum price that your GC can charge for the detailed scope outlined in the CDs.

Construction

Construction is the most challenging component of any project because the GC and its subcontractors must interpret the architect’s CDs. Each day questions arise, often leading to requests to modify the installation method or its materials. Your team and OR will help you decide the best solutions for these change requests. Keeping changes to a minimum is critical to meet the project schedule and budget.

Outfitting

Your new building will look as good as its interior components. Reusing old furnishings may offend your new building! CFS offers best practice guides to help you plan, select, negotiate and install AVL (audio, visual, and lighting), FF&E (furniture, fixtures, and equipment), security cameras, access control, IT wiring, playground equipment, food service equipment and more.

Communications

Your Owners Representative should produce a monthly progress report ensuring the timely and accurate dissemination of information by staff to the congregation. Routine updates from the pulpit will excite the community and dispel inaccurate impressions which can slow momentum.

Road Signs

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Road Signs

Churches and leaders ready to begin the execution of their project may face a range of challenges. Do any of the following statements sound familiar?

  1. We think an owner’s rep is a luxury which we cannot afford.
  2. We have a retired person in our congregation who wants to be the expansion project manager.
  3. We expect our executive pastor to take on this expansion project himself.
  4. We have an architect in our congregation who has never designed a church building, but is willing to discount his services, but we’re not sure if we should hire him.
  5. One of our members is a residential builder and wants to get into the commercial construction side.
  6. Our attorney does everything for us, so we’ll have him negotiate the professional’s contracts.
  7. We’d like to have volunteers perform some of the construction tasks.
  8. We want to shelter our congregation from the challenges of this project and only report good news.
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Safely Navigate the Road Ahead With CFS

We have created a short, detailed informational overview about each key component of a successful church property expansion project.

Click the link to download our Church Property Expansion Rules of Thumb, a short, comprehensive overview for church expansion projects and Milestones Needed to Purchase a Permanent Church Property.

You will also find a broad range of additional resources in our new resource, the Church Property Expansion Workbook.

Are you ready for a free Church Property Expansion Consultation?

If your church has attained the following milestones, we will offer you a free consultation:

  • At least 300 weekly attenders
  • At least 2 regular weekly services
  • At least $500K in annual giving, and
  • 3 full time staff persons.

Call us at 800-200-2089, email Scott , or click the button below to schedule a free consultation, and get started today.

Ask about our new Church Property Expansion Workbook, a comprehensive resource that shows you and your team the critical components for executing your church expansion project.
Click here for a preview.