Introduction

In total, the Catholic Church holds more than 177 million acres of property worldwide. Through these properties, the Church has educated, supported, and positively impacted countless lives and communities. However, the way these properties are utilized by the Church today has evolved. And in the wake of declining church participation and public relations challenges, cutting expenses and generating revenue are essential for the future.

The value of the Church’s properties - schools, land, churches, administrative buildings, and more - is hard to overstate. Yet many Church properties around the world have been sold off in recent years under their value, and alternative revenue-generating opportunities have been overlooked, costing the Church billions.

In this white paper, we’ll explore a new solution: cataloging property assets. Doing so will:

• Generate new revenue

• Save money

• Support the Catholic mission

What is Property Asset Cataloging?

As audits are conducted by dioceses around the world, consolidation of parishes to maximize efficiencies has been a consistent outcome. But what should happen with the excess properties has become a haven for missed opportunities and lost revenue.

Property Asset Cataloging allows the Church to have comprehensive oversight of its holdings in one central location, and identify valuable opportunities to maximize the financial potential of the portfolio. Some successful revenue opportunities will be highlighted further in this white paper.

These detailed catalogs must be comprehensive and maintained to be beneficial, but the outcomes are transformational. Data points in a Property Asset Catalog include but aren’t nearly limited to:

• Square footage and room counts

• Recreation assets such as sports fields, bleachers, concession stands, and more

• Number of parking spots

• Distance from highways and major intersections

• Existing subleases, their terms, and lease rates

• Maintenance costs

• Staffing

Creating and accurately maintaining these databases is arduous and requires local market expertise and industry experience, yet it is essential to understanding the true real estate value of a diocese’s assets and identifying the best opportunities for those properties.

“We have seen tremendous undersales of properties and it is like watching sand escape hands. We have lost billions of dollars since the abuse crisis settlements, not because of the settlements, but because of the rapid offloading of properties in a very irresponsible, financially uninformed way.” - Molly Burhans, Founder and Executive Director of GoodLands

How cataloging can create opportunity for the future of the Catholic Church

With a comprehensive and accurate picture of a parish’s property assets and the guidance of an experienced real estate partner, informed decisions can be made to strategically achieve the best financial outcomes, while always keeping the mission of the Church at the forefront. 

Oftentimes, that means saving money through portfolio optimization, or developing creative lease strategies rather than selling off these valuable assets entirely. Or if a sale is the right choice for a property, it ensures the highest sales value is obtained for the parish. With the experience and support of a firm like [CLIENT], the opportunities to secure the Church’s financial future are great.

Portfolio Optimization

With hundreds or even thousands of properties within a single region, management and maintenance of those assets is often left to individual sites. But as archdiocese around the world conduct consolidation audits, they have found millions of dollars of inefficiencies in operational and maintenance costs that could be saved, resulting in revenue for the Church.

Services as basic as snow removal have been found to range widely in the same market. By leveraging the large scale of the Church’s properties in a single market or comparing costs to negotiate lower rates with the support of a firm like [KWW CLIENT], significant cost savings can be realized. Staffing efficiencies have also been found to realize operational savings helping to ensure the Church’s future and impact. When you consider the scope of the operational needs of an entire region’s property portfolio, the financial impacts are significant.

Leasing Opportunities

There are many leasing arrangements dioceses can explore with the help of a real estate firm that enable the Church to retain ownership of its valuable property and generate immediate and recurring revenue to support its operations and mission.

• Land leasing: The Roman Catholic Diocese of Austin held property adjacent to the University of Texas campus where space for student housing had become scarce. Awareness of their valuable location and acreage paired with the support of a real estate consultant, the Diocese of Austin negotiated a 99-year land lease agreement with a developer who constructed a highrise student-living complex where the first six floors were for the Diocese’s use for administrative, mission, and educational purposes. This arrangement provided an immediate financial influx, the stability of recurring revenue, and modern physical space for the Church’s use.

With the support of a real estate consultant like [KWW CLIENT], other regions can identify opportunities like this and negotiate the most favorable terms to carry the Church forward with financial stability.

• Youth sports: The Catholic Church holds a diverse array of assets that are easy to take for granted. Schools with playing fields, gymnasiums, and ample parking are tremendous opportunities for the Church to lease to community organizations seeking practice and play space. Cities and private organizations are spending millions purchasing or leasing property for youth sports, and with the help of a real estate firm, these opportunities can be found and negotiated for the Church.

What’s next?

There is urgency for the Catholic Church to strategically plan its financial security to ensure its future. To continue providing education, worship, community services, and individual faith support in these changing times, it is important to realize the potential of the Church’s real estate assets and maximize opportunities to save money and generate new revenue. Contact [KWW CLIENT]’s occupier services team to learn how your region can strategically secure its future and impact by leveraging its property portfolios.