State of the Marina Market

Marinas are still viable investments as the popularity of recreational boating remains strong. Marina Dock Age sat down with the Simply Marinas team, Michelle Ash, owner and broker, and George Ash, national director, to discuss the state of the marina market and what sellers need to know.

Marina Dock Age (MDA): What is your role as a marina broker?

Simply Marinas (SM): We advise our clients on the much-needed presale strategic planning. The same principles apply to large operations or small marinas. We share our strategies with all marina owners for early and comprehensive preparation to position their marina for sale to achieve the highest possible value. We recently completed a seller’s guide that’s filled with our recommendations that come from decades of proven results including more than 250 marina transactions and more than $380 million in recent sales alone. (Request a copy at team@simplymarinas.com or 305-390-0397.)

MDA: What are some critical pieces of advice you offer sellers?

SM: Luck is not a strategy. We emphasize ongoing preparation from day one to position the marina for sale, not just when a marina owner decides to sell. Marina owners should pay attention to understanding the market and what buyers look for, identifying new profit centers, exploring expansion potential, taking care of deferred maintenance and maintaining reliable financial records. In addition, knowing what the impact of the sale is on their bottom line after depreciation and planning their exit strategy are essential.

MDA: Of your sellers, what do you see as the most common reason they are ready to sell?

SM: It is mainly about the timing, whether it is a good time to leverage their investment, a time for them to retire, or circumstances that would require them to sell.

MDA: How have marina prices changed over the past several years?

SM: Marina sales and pricing accelerated after the pandemic with a more robust interest in marina acquisitions in 2021, followed by 2022 and 2023. We are seeing slight stabilization at this time; however, due to new investors and Wall Street private equity firms’ strong interest in marinas, this demand will continue to make marina investments viable.

MDA: Are more marinas being sold to corporations or individuals?

SM: Several existing and new corporations have been actively buying and consolidating marina acquisitions. However, several of our buyers are individuals or regional buyers and not large groups. Corporations focus on larger marinas with storage income and have stringent criteria concerning investment requirements, location, type of marina and upside.  End users, local buyers and regional buyers are also very active in the market, often proving to be more suitable matches for many marinas sold. There is a buyer for each marina type.

MDA: How are corporate buyers and individual buyers different?

SM: The intent is different. Corporations acquire multiple marinas within similar locations for economies of scale and have the goal of selling their portfolio.
Individuals focus more on long-term holdings and creating a family business and legacy.

MDA: Taking a longer view since you’ve been in the business so long, how has the market changed? 

SM: More deals were closing with local buyers. Marina investments attracted fewer investors early on, while most gravitated to other commercial real estate asset types.

At this time, buyers are not limited by location; they consider marinas as desirable acquisitions due to their higher cap rates and accelerated depreciation compared to other asset types.
There is a significant shift in the market, with a much larger pool of qualified buyers now showing interest in marinas. This is further fueled by a substantial influx of cash from private equity groups, injecting a new level of competition into marina acquisitions.

MDA: How has the role of a marina broker changed through the years to meet the market?

SM: These newer investors are focused on the bottom line rather than a lifestyle acquisition.

We work with the marina owner to present reliable financials and to produce the required due diligence package so there is no retrading in the value of the marina down the line.

Our outreach and marketing are national and global because buyers are open to more than one location. Our sales velocity has accelerated, which is a testament to our growth and the success of our award-winning marketing outreach. Our Simply Marinas Network of marina buyers and investors, which we developed over the years, now has more than 14,000 marina investors.

To meet clients’ needs, our team provides support to our clients from presale strategic planning and valuation to due diligence, financing, contract negotiations and exit strategy.

MDA: What have been some key learning moments in your career?

SM: The most rewarding aspect of our work has been the endearing relationships we have developed with our clients, who sometimes become friends. Several have become repeat clients who buy and then sell with us. We value each client and understand their goals and needs to help them achieve their end goal.

MDA: What are your predictions for where the marina market is heading?

SM: Based on the number of investors and private equity firms contacting us regarding marina acquisitions, we believe the market will continue to be a viable acquisition attractive to investors. Sophisticated marina buyers who contact us share their enthusiasm and confidence in the marina market.