Originally published October 2022.

Part 1: an introduction for investors.

We’ve all heard the old axiom: if it floats or flies, rent don’t buy.  So, how does one treat a marina with its innumerable floating components? Marinas are niche real estate assets with one defining characteristic in common: a waterfront location. Most property investors or developers would salivate over a portfolio of real estate assets all containing some element of water frontage and many do. However, there is more to the sector than meets the eye and a growing interest in the market too.

Historically, I have often heard marinas referred to as ‘car parks for boats’. This might initially sound appealing to a potential investor thinking in terms of small scale, high volume, regular rental income, low operational costs and a stake in the underlying real estate. If only it were this simple. Marinas are, however, the ultimate hybrid asset. Part wet and part dry, sometimes saline, sometimes riparian, tidal or non-tidal, conditions vary hugely, as do environmental issues and operational costs. Marinas can have both leisure and industrial components; they can simultaneously have a number of operational businesses working alongside a commercial property landlord. And in other cases, there are even residential considerations to take into account where live aboards are concerned.