The San Jose-based First Pentecostal Church paid $21 million for an industrial building 20 minutes from its main location, according to public records. The seller is an entity traceable to Registered Agent Services, a business services company.
The property is located at 5891 Rue Ferrari Road in San Jose and is 73,000 square feet. The industrial building was built in 1997 and sits on 5 acres. Classified for research and development use, the property is located in an industrial hotbed of San Jose.
The church did not respond for comment on the intended use of the space.
Across the country, there is a trend to use industrial buildings as extensions of their spaces of worship.Chicago-based report Aspen Group Discover some of the most important aspects of converting from a warehouse to a church are lighting, sightlines, and building materials.
Grace Midtown Church Acquired a 3-acre industrial building in Georgia and converted it into a 1,000-seat auditorium. The church also transformed the parking lot into a multi-purpose meeting place.
“Grace Midtown is a great example of how churches are rethinking their buildings and how they relate to the public realm, re-establishing the relationship between public space and the congregation within,” said designer Marques King.
Nevada, carson city Christian Fellowship converted a 25,000-square-foot warehouse into an extension for its congregation, including Reception, shared offices, classrooms for infants and primary school children, as well as kitchen and storage areas.
While demand for warehouse space remains high in early 2023, it has cooled from the hot market in 2022, according to a report from brokerage Cushman & Wakefield. Subletting accounts for 25 percent of available space in the Silicon Valley market, up from 6 percent a year ago. Leasing activity fell to 757,000 square feet, about half of last year’s fourth quarter.
“Most tenants have put expansion or relocation plans on hold due to the uncertain economic situation,” the report said.
