Boat Slip Auction

The quantity of available boat slips continues to plummet world wide while the number of boating participants continues to increase by an average of 6-10% annually. This problem is projected to continue and worsen in staggering proportions throughout the U.S. and Caribbean.

This was our message between 2000 - 2007, and while the number of "new boats" cominging into the market is no longer increasing, the number of people who participate in boating is - even in a down economy. During the boom years, at least we had developers clammoring to build new marinas and for a little while, it got easier to find an opportunity to purchase your own slip or rack. Unfortunately, many of these projects were tied to condominium developments or were expensive redevelopments taken on late in the cycle - too late and too expensive to find success before the market collapse. The terrible result is that there are now even fewer slips available today, than there were at the height of the real estate boom. Hopefully, in the not too distant future, these redevelopment projects that suffered from bad timing will find new owners to complete them or purchase them out of foreclosure and begin again.

In addition to marina projects that suffered ill timing, many dockominium offerings who still have a small portion of slip inventory available have wisely (but unfortunately) elected to stop selling in the current market. It is wise because it protects that value for those who have already purchased slips in their marinas. Unfortunate, because it makes it more difficult for those who are still seeking this hard to find asset. In the short term, as banks begin to work through their foreclosure portfolios, we expect to see a small number of slips and racks to come into the auction market - these will be the opportunities to grab until credit markets begin some form of recovery and new boat manufacturing finds its feet again.

Over the past 40 years, dockominiums have gone through 4 recessions and still have averaged between 8% and 14% annual appreciation over the long term. That's an incredible track record. And while there is great tribulation and doubt now over the value of real estate assets, it's our bet that a growing population and shrinking waterfront will keep this asset class performing as it has since it first appeared in the early 1970's..
  • Industry magazines placed the 2006 shortage of boat storage spaces in the United States at over 500,000..... increasing at the rate of more than 100,000 a year. These same magazines estimated a near-term shortage of one million spaces and predict an average rental of $20,000.00 annually by 2020.

  • Private marinas and what little waterfront property available for permits was being siezed by large development corporations for condominium and hotel projects - eliminating or greatly reducing the dockage available for recreational boaters.

  • Transient and Long Term Slip rates skyrocketed, marinas and docks disappeared at alarming rates. Dockage in southeast Florida and other similar locations became so difficult to acquire that many had trouble selling a boat unless a slip was part of the deal.

  • Wet Slip waiting lists at hundreds of marinas can easily be found to be several years long. It is not unusual to find a Yacht Club or Marina that can only offer a new slip space through a members passing or move from the area.
  • Hurricanes have eliminated tens of thousands of slips in the Bahamas and the U.S. Gulf and East coasts. This will, of course be an ongoing threat that can not be overcome. It's affects can have far reaching impact on the recreational marketplace.

  • Stringent Federal, State, Local government and environmental restrictions have almost completely ceased the creation of new marinas and made it almost impossible for even grandfathered marinas to expand or dredge in many locations.

  • Investors, insightful boaters, developers and waterfront property owners realize that demand for water access is far greater than the supply and they are capturing the remaining opportunities as quickly as they become available. This "land grab" has accelerated the deficit in available rental space and will continue to place upward pressure on the recreational market.

  • There are over 10,000 dry rack spaces on the Chesapeake Bay that are currently occupied and new marina development is in the Critical Bay Zone is now prohibited.
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SLIPS AND RACKS.COM

These are only a few of the factors that have contributed in the past to what is going to be a continued shortage of dock space in the USA, Caribbean and Global Urban Markets. While we realize that there is a temporary decline in demand, history of all previous recessions tells us that demand will recover and an ever shrinking supply of existing marina and marina property suitable for development will keep upward pressure on berth rental rates, waiting lists and purchase prices. Despite 4 recesssions (excluding the current) dockominiums on the US Eastern Seaboard and Florida Gulf Coasts have obtained AVERAGE annual appreciation rates between 8% and 14% over the past 38 years.

Florida Boat Slip Auction

Our service is intended to provide early notification of development and acquisition opportunities to boat owners and investors who are seriously interested in ownership of these types of properties....and who understand that lower pre-development prices are offered by many developers as an incentive to sell out the initial construction phases of a new development or re-development project in an expediant manner. Developers normally recieve the bulk of their funding once the initial construction phase has been completed. Thousands of dollars can be saved through these types of developer sponsored incentives...provided you're ready to act when the offers are available.