Marina Opportunities 2000, a survey of more than 160 marinas, shows the industry at a crossroads that demands a new business model to reach its profit potential, according to survey author Bruce Blomgren, president of Brandy Marine, Inc., a leading international marina development, management, brokerage and consulting company.

With over 80 percent of the nation's 10,000 marinas still independently owned, the U.S. marina business is still a largely non-standardized, primarily family-owned cottage industry that resists consolidation. When scrutinized with standards real estate valuations, marinas often fall short in investor

return and are thus overlooked as prime investment properties.
"Clearly a new business model is necessary if the industry is to prosper," says Blomgren.
Brandy's survey of 160 marina owners/partners along the East Coast from Norfolk, VA to Mobile, AL revealed:

"On the brink of the 21st century, some of the nation's most intrinsically valuable real estate is underperforming, and many marinas are missing their annual profit potential by 4 to 11 percent," said Blomgren. "That helps account for the sizable gap we found between sellers' and buyers' perceptions of what marinas are worth."
"The good news is that tremendous opportunities do exist. Marinas are truly real estate's 'sleeper' in terms of waterfront amenity potential and as more profitable business for current owners. They also are attractive investments for the institutional buyers who've transformed other industries, providing they are professionally and aggressively managed," Blomgren said.

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