Marina for Sale!!

If you love the boating life and run across a marina for sale, do you find yourself tempted to take the leap, and jump into the Marina Ownership Lifestyle?   Marinas can range from a small family owned business to large, corporate operations with significant real estate operations, including revenue generators such as slip rentals and gas sales.

In today’s market, there is a diverse inventory of marinas currently for sale. Check out Marinas for Sale and Marina Sales.  Given the real estate decline of the last few years, you may find the final purchase price of a marina to be significantly less than it would have been four or five years ago. 

1. Operating costs are low. A marina provides few extra services to a rented slip besides the space.
2. Once built, modern docks will last for over 40 years with routine maintenance.
3. Most slips rent on an annual or seasonal basis providing steady predictable cash flow. Transient slip rates are significantly higher and can provide a boost to revenues during high season.
4. In many areas waterfront space is limited allowing marinas to earn good rates on slips and add dry land or rack storage for additional revenues.
5. Dependence on the economy. Boating is a recreational activity and marina services do well when the economy prospers.
6. Property and construction cost plus environmental regulations limit the construction of new marinas. 
7. Coastal property values should continue to increase.

(Click here to learn more about Clean Marina
Programs in Participating States)

Cons when considering the purchase of a marina for sale:

1. Cash flow can be highly seasonal, depending on the marina location.
2. Building and maintenance cost are high. It can cost up to $60,000 to build a new slip including the required environmental costs.
3. Competition from public marinas. Public marinas may be subsidized by local governments and provide services at a lower cost than a private one can. In Michigan, Florida and California (the states with the highest number of boaters) public marinas provide significant competition to private marinas.
4. Dependence on the economy. See above.
5. Marinas are usually highly leveraged and a small change in revenues or boating activity can have a significant effect on bottom line profits.

Finally, a couple of trends from the Richard Graves and Associates report:

More boaters are moving inland to get away from high coastal costs and weather threats. Inland marinas are reporting significant gains in activity.

There is a shortage of marinas that can handle and cater to mega-yachts. The sale of very large yachts is still a growth business and marina space will be needed.

Source: The Marina Business    |   Richard Graves & Associates