Marina Market Booming in Florida and Beyond

The booming marina market is good for the overall US economy.

MIAMI—It’s not just about Spring Break, winter vacations and retirement. Americans from across the nation are flocking to Florida to invest in a better way on life. For marina owners and investors , the market has been strong, according to a new report from CBRE Marina Services . The firm says it’s a positive sign for the overall US economy. Recent statistics from the National Marine Manufacturers Association (NMMA) Statistical Abstract and the Recreational Boating Economic Study reveal that recreational boating is still a vital factor to the US economy. The NMMA study points to the popularity of and demand for boating has increased significantly over the past several years, with current participation in recreational boating at 35.7% nationally. That’s well above the 2006 percentage of 26%. CBRE recently examined the statistics from a microeconomic perspective—specifically for Florida—and are predicting the outlook for investment in the Florida marina market is up. Jeff Carson, vice president of CBRE Marina Services, tells Globest.com supply and demand characteristics of Florida’s three marine regions are significantly different. He notes the differences among the east coast of Florida, the west coast of Florida and the Florida Panhandle. “Within the east coast region, the southeast Florida submarket still remains the hottest marketplace with the highest rental rates, the lowest vacancy and the longest waiting lists in the state,” Carson says. “This area clearly has the fundamentals necessary to support new marina development as well as marina expansion, reconfiguration or redevelopment.” Regarding the other regions, he says the West Coast market is primarily a buy and hold, or value added play. In the Florida Panhandle, he continues, marinas, cargo terminals and other waterfront properties can be purchased at a fraction of the east coast pricing levels. Carson’s conclusion: This region is ripe for low bid acquisition with a long term holding strategy. Key economic indicators provide a snapshot of the direction and velocity of American disposable income. “With the national GDP trending positive since Q2 of 2011, this is a very positive indication of potentially increasing disposable income, and the NMMA data reflects the growing popularity of boating in the United States,” Carson says. “While the popularity of boating is increasing, the average hourly earnings data supports the ability of the average hourly wage earner to afford a boating lifestyle.”