In today’s market environment, marinas are experiencing record demand for their services. Interest in outdoor activities has skyrocketed due to the prolonged COVID era. The boating industry has seen record demand for boats, boat maintenance and repair services, and marina slips. Marinas across the country are reporting 100% capacity and long waiting lists for slip availability. Given these circumstances, marina operators may be tempted to rest on their laurels and reap the financial benefits associated with the boating boom. However, it will behoove marina owners and operators to utilize this time of economic prosperity to consider ways to strategically invest in their property and its operation to position it for longer-term success.
Below, we highlight several investments and improvements that can yield dividends by increasing the perceived value of the marina by tenants while being conscious of spending. Marina expansion is a consideration for some marinas given the spike in demand for boat slips. This option can require significant capital investment, involve a lengthy permit approval process, and take quite a while to complete the project. Space constraints can also make this option infeasible. For the sake of this article, we will forsake this option and focus on smaller-scale projects that may be sage investments.
1 – Earn “Clean Marina” certification. Most states offer Clean Marina certification that provides guidelines to be followed to allow a marina to earn accreditation while also being good stewards of the environment upon which they depend to support their business long term. Boaters are drawn to pristine waters which are free of environmental threats and unsightly refuse. Studies show marinas that are certified as Clean Marinas can charge slightly higher slip fees and have higher occupancy rates. While the occupancy rate may not be a concern today, it has certainly been an issue in the past and may well also arise in the future. Consult your local government branch of the Clean Marina program in your state and get to work meeting the requirements to earn their stamp of approval.
2 - Review & Update the marina rules. It typically costs little to update the rules that marina tenants are expected to abide by during their use of the marina facilities. Take into consideration things like boat maintenance and appearance requirements, dock clutter, noise and disturbance limitations, and consistency of appearance for items like dock boxes and boarding steps. While marina operators don’t always provide dock boxes and dock boarding steps to their tenants, they can require that everyone purchase the same products to provide a uniform look. This can go a long way to improving the appearance of a marina. With demand at an all-time high, now is the opportune time to implement rules changes without much fear that the changes could lead to the departure of marina tenants.
3 – Expand the Ship Store offerings. Take advantage of the captive audience made up of your marina tenants. Explore whether additional product categories could sell well to these customers. Consider adding new and current apparel and merchandise featuring the marina logo. Expand the offering of drinks and snacks to offer upscale items that have a higher unit price and margins. Survey your customers to see if they have recommendations about what additions they would like to see to the onsite store.
