What is a fair market rate for a church congregation to expect to pay for a building?

Doing research for a court case involving two owners of a church. One owner has used the church and has not paid rent. The other owner is assessing the fair market value due. I can do neighborhood comps, but they are more of a retail or office nature, not a weekly usage. Any thoughts or experiences with this subject would help!!
In Leasing Property - Asked by Sarah P. - Sep 8, 2009
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Answer(s)

david h.
Owner/Investor
Bristol, TN

they should expect to pay the same as any one else would be expected to pay, the value or market share of a building is the same share to one client as another

Sep 9, 2009
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Mike M.
Broker/Agent
Germantown, TN

Sarah P.,
I would do comps for office rentals in the area nad use the per sqaure foot per annum rate to calculate the rental due. (Take the comparable annual rent in the neighborhood divided by 52 weeks, and multiply it by the weeks used.)

Sep 9, 2009
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Jeffrey B.
Broker/Agent
Tampa, FL

I would suggest the overall rates is more like a flex showroom which commands a lower price. Assuming the owners have an equal share of course the one not using the building is entitled to 50% of the value. I have observed lease rates for churches or charities etc that are in shopping centers, store fronts, flex projects etc are pretty low in that they do not use as much parking spaces in prime times and have low impact on the property. I would look at leases with public service, charities, churches to determine the fair rate.

Sep 9, 2009
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Deborah T.
Appraiser
Columbia, SC

Believe it or not, churches really are rented, and typically for much less than office or retail space in an area. On the other hand, weekly rent would be much more than annual rent. In this economy, an owner would probably accept weekly rent at will just to get some funds rolling in. I've seen churches rent space in retail strips. Why not interview landlords of retail space of similar size and ask them what they'd accept for a weekly rental rate for a church, assuming that there would be no tenant improvements required?

Sep 10, 2009
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David C.
Property/Asset Manager
Dallas, TX

I manage warehouse space all over the SE and have leased ours to several churches over the years. We've always leased to them for the same rent we'd lease to anyone else, the exception being if there was a build out involved. We've financed those on occassion and charged it back as addtl rent. But the base rent was never reduced as a result.

Sep 11, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

Fair market rate is going to be the fair market value.
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Oct 23, 2009
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