Appraisal Matters

Over the last few weeks, our posts have been about what is going wrong in the industry.  There are segments and marinas that are doing just fine.  They may not have the same net income as last year, but smart planning and their position in the market have helped them survive and sometimes thrive in this market.  There are many factors that help a marina’s position.  The following marinas have features that are most desirable:

1. Yacht marinas are doing well, especially mega-yacht marinas.  The rich are still doing just fine and still keeping their boats in the water.
2. Primarily sail boat marinas are still strong since the price of fuel is not keeping boats out of the water.
3. Full season marinas are fairing better than marinas with shorter seasons.
4. Access to salt water.
5. Clean and green marinas have an advantage as boaters sensitivity to these items grow.
6. Updated facilities at the top of the market.  Internet and upgraded electric are no longer just an option.
7. Properties that are NOT condominiums or were purchased for redevelopment.
8. Marinas that have “one stop shopping” with food, entertainment, repairs, fuel etc are more insulated than others.
9. Marinas that did not refinance based upon development entitlements or “paper” plans.
10. Marinas that do not rely upon boat sales as their primary income stream.

Overall, this too shall pass.  the non-performing properties will eventually work themselves out.  Marina owners that were conservative during the good times, put away reserves and who tighten their belt even more now will do just fine.

Eileen Simpson