A marina is a dock or basin with moorings and supplies for yachts and small boats. A marina differs from a port in that a marina does not handle large passenger ships or cargo from freighters. Most commercial appraisers use a combination of the Sales Comparison Approach, Income Approach and Cost Approach to help them develop an opinion of value for a marina. The following is general guideline for valuing marinas.
For the Land Value, commercial appraisers consider the marina’s location and how much demand it has and its proximity to users and the destination area. We also consider accessibility issues like tidal restrictions, seasonal limitations, lock, bridges and access to services. We also consider whether the marina is owned or leased.
For the Cost Approach, commercial appraisers consider the number of slips, slip length and overall lineal feet of dock. Then consider the condition of bulk-heads, breakwaters, haul-out access and the condition of service building and storage facilities.
For the Income Approach, commercial appraisers consider all sources of revenue like slip rentals, haul-out charges, storage fees, building leases to yacht brokers, fuel sales and storage sales.
Some quick facts on marinas: 1.) There are more than 12,000 marinas in the U.S. ; 60% are located in saltwater. 2.) The median age of a marina is 40 years. 3.) 75% of marinas are 25 years or older. 4.) Most marinas are owned by individuals as opposed to corporations. 5.) Pleasure boat dockage, slip rentals, launch fees and storage fees account for most marina income.
Please contact us for marina appraisal services.