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Marina Market Analysis
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Marina Market Analysis

Marinas are not at all homogenous, and the various combinations of business and physical components result in significantly different results for the owners and operators. The two major types of marinas are coastal (usually found in saltwater inland waterways that lead to an ocean port), and freshwater (found on lakes). Saltwater marinas tend to attract larger vessels and require a completely different level of maintenance. Freshwater marinas typically cater more toward day-sailors and day-boaters who do not have personal space with which to keep their boats.

Typical marinas in both coastal and freshwater locations can include any combination of the following components:

• Wet Slips (covered and uncovered)
• Dry Storage (land)
• Dry Storage (stack)
• Maintenance and Repair Yard and Services
• Marine Dealerships (boat sales)
• Merchandise Sales (fishing, boating, sundries)
• Fuel Sales (gas and diesel)
• Equipment Rental

With regard to slip rentals (wet and dry), these spaces can be either rented (the traditional route), or sold as "dockominiums" and "rackaminiums." The sellout component became very popular in the last decade, and many marinas were converted to all or part sellout type enterprises. Part of the reason is that developers in recent times prefer to develop real estate for sale (condominiums or homesites) that surround the marina, and in turn could sell the boat spaces and then move on to another investment. The market for dockominiums (wet and dry) somewhat dried up during the recent recession, and many of the unsold units were subsequently rented instead of sold.

Another trend of development prior to the 2008 recession was for marinas within luxury resort communities that also have a residential component. These include 4 and 5-star resorts in the subtropical USA as well as the Caribbean. Typical luxury resort developments planned in the last decade would include a hotel (which the developer would license to a "branded" operator), condominiums and villas for sale, home sites for sale, and recreational components such as a golf course and marina. The sellout types of dock spaces fit well into the business model of the developer, as they sell other components and license the hotel operation to a separate entity.

Marinas also vary in size from small "mom and pop" or "lifestyle" businesses with less than 50 slips to large enterprises that attract institutional purchasers. Across the board, marinas are affected by economic downturns due to the leisure component of the boating hobby. During the last two recessions (2000-2003 and 2008-2009), many marinas went into foreclosure. This created difficulty for marinas to obtain financing.

IGY American Yacht Harbor Marina

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