Marina Market Analysis 30

Marina Market Analysis 30 marina sales have indicated that now is a good time to invest in a marina, despite the previous recession and limited financing. Competitive Marinas The most significant supply and demand indicators for the subject are rental and occupancy rates experienced by directly competing properties. The operation of a pleasure craft marina provides revenue sources which include a mix of various rental, sales and services for the pleasure craft operators. Principle revenue stream for pleasure craft marinas includes in-water slips, fuel sales, and building rent. The subject’s asking and average contract rates are shown in the table that follows. The current operator is leasing the marina slips by linear feet of vessel length. We have then converted this rental income into a rental rate per linear foot of dock space. The subject offers slip rental on a daily, weekly, monthly, seasonal and annual basis. The contracted rental rates represent a blend of these rates, from daily tenants to long term tenants on annual leases. According to management, approximately 60% of the occupants at any given time are seasonal or annual tenants. Marina Rent Roll Total Annual Average #of Average LF Annual LF Total LF Occupancy Total Rental Monthly Rental Year Slips er Sli Available Occupied Rate Revenue Rate/LF 2010 105 53.29 2,042,170 1,379,235 67.5% $1,551,721 $34.22 2011 105 53.18 2,038,110 1,298,157 63.7% $1,490,744 $34.93 2012 105 54.24 2,078,880 1,155,377 55.6% $1,290,526 $33.97 2013 105 54.10 2,073,200 1,206,388 58.2% $1,362,951 $34.36 2014 105 54.10 2,073,200 1,233,672 59.5% $1,513,100 $37.31 2015 (Annualized 105 54.10 2,073,200 1,172,976 56.6% $1,438,110 $37.29 Average 105 54 2,063,127 1,240,968 60.1% $1,441,192 $35.35 We weren't provided with a current rent roll for the marina slips but we were provided with monthly historical occupancy and rental rate data. With the transient nature of marina tenants, a historical rent and occupancy figures are a more accurate indication of the income properties of the marina. Rental rates at the subject, and in this market, are based ona rate per linear foot of vessel length. As discussed earlier, the subject contains 105 wet slips with a total of 5,680 linear feet of rentable dock space, which indicates a total of 2,073,200 rentable linear feet per year. As of the effective valuation date, the subject marina has experienced an overall occupancy rate of 56.3% for the year to date 2015. We have looked at occupancy rates on an average, annual basis due to the seasonal characteristics of this property type in this market. Again, due to the transient nature of the tenants in this property type and the short term nature of the leases which can range from daily to annually, the overall occupancy rate will be lower than other commercial property types such as lodging, multifamily, retail and office. The subject’s current occupancy rate is slightly lower than historical rates, but the property is considered to be at stabilized occupancy. The weighted average contract rate is $37.29 per linear foot per month for the year to date 2015, which equates to an average contract rate of $447.50 per linear foot per year. IGY American Yacht Harbor Marina HOUSE_OVERSIGHT_018840