Properties held by religious organizations are more than physical assets — they are sacred spaces. The land itself often holds deep spiritual, historical, and emotional meaning. Whether a motherhouse, retreat space, medical facility, ministry center, surrounding land, some combination of these, or uses beyond, religious property has undoubtedly been the setting for mission and community life.
Yet even as realities shift and property use evolves, the opportunity for communities to leverage property in the service of mission and community life remains. Whether through repurposing, partnerships, or divestment and reinvestment, these decisions can (and should) reflect and advance the community’s values and vision.
To make informed decisions, it is essential to begin with a clear understanding of the property’s condition, potential, and value.
Real estate tools provide critical data to address the above, but data alone is not enough. As Catholic philosopher Bernard Lonergan, SJ, once wrote, “Thoroughly understand the context, and you will understand the meaning.” For religious communities discerning the future of their property, context includes not only market, legal, and financial considerations but also the charism, mission, and values that define their identity.
The real work lies in creating this context so that leaders and their trusted advisors can interpret data, establish congregational priorities, and make decisions to support the future of the mission and community life as their properties evolve.
Understanding highest and best use
In real estate, an industry-standard highest and best use study evaluates a property based on four criteria:
- Legally permissible – What uses are allowed under current zoning and legal frameworks?
- Physically possible – What can the land or structure physically support?
- Financially feasible – What uses are economically viable?
- Maximally productive – What use yields the highest financial return?
These criteria are helpful — to a point. However, religious institutes are often guided by a different compass. The key is to reinterpret this data through the lens of mission and values, rather than defaulting to financial maximization as suggested by the fourth tenet of a traditional highest and best use study.
A values-based context for property discernment
To make decisions that are both strategic and authentic, communities must begin with clarity about their identity and purpose. This includes:
- Mission – Who and what is the congregation called to be and do in the world? Who have you been throughout your history?
- Values – What principles must guide this discernment?
- Financial reality – What resources are needed to sustain your mission and community life now and into the future?
Consider a continuum. On one end lies a mission-driven or a communal-values-based context (e.g., affordable housing, community gardens, or retreat centers). The opposite end is a monetary- or financial-values-based context (e.g., market-rate development or sale to private entities).
Most congregations will find themselves somewhere in between these extremes: wanting to consider their mission and communal values while needing to realize some sort of financial gain from the property’s transition. This type of analysis would lead to your optimal property use.
Consider these examples:
Mission-Driven Value Prioritization
A congregation transforms its former motherhouse into transitional housing for women and children, partnering with a nonprofit while accepting a lower financial return.
Another religious community wanted to build affordable housing on a coastal property. The location was not ideal for those who would need affordable housing, so instead, the sisters sold the property for market value with the plan to invest in affordable housing at a suitable location in the city. Learn more about this client’s journey in our case study here.
Financial Value Prioritization
A congregation sells a portion of its land to fund elder care for its members, perpetuating the long-term sustainability of its mission. Read more about this client’s journey in our case study here.
Overcoming analysis paralysis
Property decisions are ripe for analysis paralysis. There always seems to be more perspectives to consider. While it might seem natural to continually surface more data, organizational psychologist Adam Grant says, “The antidote to chronic indecisiveness is not to gather more information. It’s to clarify your values. The goal is not to check every box. It’s to find an option that meets your top priorities.”
Values clarification is critical in setting direction and context; however, it is unrealistic to expect that all options will align neatly with all your community’s values. Competing priorities will likely arise.
Negotiating these challenges can be easier with the help of a trusted advisor: someone who can listen and reflect leaders’ hopes and realities back to them, help leaders clarify operative values, analyze financial needs, engage community members effectively, and support leaders throughout their property process. With clarity around your mission, your values, and your financial reality, a real estate professional can surface meaningful, feasible options for the future of your property. Your property can serve your mission and community life into the future.
Plante Moran Realpoint is uniquely situated as a team of consultants and real estate professionals who understand the landscape of religious life and commercial real estate. Reach out to us to start a conversation, or visit our service page to learn how we can help.
