We have over 20 years of experience in this industry for the valuation of the business, equipment and real estate. Let us help you with our valuation consultation in all areas of the valuation of marina businesses. Below is a brief synopsis of the industry.
Description of Business
Establishments offering dockage for boats and ships as well as harbor for companies to load and unload cargo. Also includes facilities for storage of cargo.
General Industry Information
There are almost 13 million families which owned boats in the United States. There are over 10,000 marina facilities which provide storage space and sell marine-related services and products to recreational power and sail and commercial water craft owners. There is no standardized format for determining marina industry assets since a marina may refer to a facility with only four docks or one with thousands of slips as part of a larger facility. The 1980s saw significant expansion and slowed in the early 1990s when vacancy rates ranged from 20-30%.
A marina rents, leases or sells slips, usually in a boat basin with piers and stationary or floating docks. More than 8,000 marinas, with about 400,000 slips, sell marine services. There are moorings and anchorages for about 33,000 boats. More than 200 dry slip or land based, often stacked, boat facilities store up to 150,000 boats on racks in buildings or on open land. Finally, there are approximately 1,100 boat yards provide wet slips.
Rents are generally based upon dry dock, open water slips, slips which range in length from 20 feet to 80 feet, end tie slips, and bulkhead slips.
Red Flags and Risks
When doing an inspection, review the following areas:
The mooring cleats should be cast ductile iron – hot dip galvanized, great for salt water. The cleats are the key to safely mooring a vessel to a dock. Check to see that all bolts and fasteners are hot dipped galvanized, and the power boxes are UL listed. The bumper strips should be of heavy duty marine grade vinyl, which protects the boats from hitting the whalers. Make sure that the pile caps are constructed of high gloss, long lasting fiberglass, with a layer of gel coat protection. The floatation system should be constructed of polyethylene pontoons and polystyrene foam core.
The marinas should be constructed of all #1 or better, ACZA pressure treated lumber, with .60 penetration, and pressure treated marine plywood. The decking should be made of “Trimax lumber” which is a high performance construction material produced from recycled plastic through a new patented process. “Trimax” resists attacks by termites, insects and marine borers. It outlasts all treated wood and does not erode in salt water. It is weather resistant, and most importantly is maintenance free.
Check for any amenities, such as fresh water and, dock-box storage for each slip, On-Site Pump-A-Head, Dock Carts, Clean Restrooms, any Shower Facilities, Handicap Access, On-Site Restaurant, On-Site Boat Yard, On-Site Marine Product Store, any Storage Garages, Convenient Parking, or Security Cameras.
The biggest risk for the industry is it’s reliance on healthy economic conditions since boating is a discretionary expense. As a result, vacancy rates increase significantly in recessionary times.
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