When considering potential future commercial investments, Marinas may not be the first property type to come to mind. However, in addition to warehousing, this is one of the few property types that seemed to be gaining momentum pre-pandemic and weathered the storm of the pandemic quite well. Moving forward, will Marinas remain sound investment opportunities? In this blog, we look at the 2021 IBISWorld report on trends in the Marina industry to find the answer!
The Latest Trends in the Industry
As previously noted, Marinas have fared quite well as commercial investments since March of 2020. While we were in the midst of the shutdown, boating and water sports were considered socially distant approved activities which contributed to an increase in revenue of 3.6% in the year 2020 alone. As we move toward a state of normalcy once again, the driving external factors of successful investments will most likely include:
- Discretionary income of the surrounding community
- Prescence of add-on services (watercraft rentals, bike rentals, grills, food and beverage availability)
- Tourist/ visitor interest
Outlook for Marinas
As of now, the external factors listed above seem to be aligned just right to allow the industry to continue its growth over the next several years. In their report, IBIS world observed that industry revenue increased at a rate of 3.3% to $6.0 billion over the five years to 2021. Even during the pandemic, the boating industry weathered the storm quite well, relying on a large portion of individuals who are boat owners earn a salary of over $100,000. For the most part, those with salaries around this mark were not as financially burdened as lower income households. The increased interest in watersports, combined with the minimal financial burden endured by boat owners was the perfect formula for growth last year. The reason we expect this growth to continue is that per capita disposable income is forecasted to rise over the next five years. With increased financial security, consumers may be encouraged to purchase boats and marina memberships, particularly if outdoor activity remains highly attractive due to a lingering pandemic in 2022
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