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Marina Market Analysis 29 The table that follows details whether or not marinas will post a gross profit for 2014, based on marina size. Marina Gross Profit - Will Report a Gross Profit No Do Not Know Yes Marina Size % of Respondents Small (1 - 99 Slips) 19.0% 17.0% 64.0% Medium (100 - 249 slips) 16.0% 14.0% 70.0% Large (250 - 749 slips) 9.2% 14.5% 76.3% Very Large (Over 750 slips) 11.0% 11.0% 78.0% Overall 14.5% 14.5% 71.0% The majority of small marinas (64%) reported that they would report a gross profit in 2014. The majority of medium marinas (70%) reported that they would report a gross profit in 2014. The table that follows details changes in gross profit in 2014 over 2013. Marina Gross Profit - 2014 Over 2013 Decreased Stayed Same Increased Ownership Type/ Size/ Age % of Respondents Government Owner 9.0% 34.0% 57.0% Corporate Owner 17.8% 28.6% 53.6% Private Owner 22.4% 24.5% 53.1% Overall 19.2% 28.8% 52.0% New (Less than 7 Years) 53.8% 50.0% 68.0% Medium (8 - 35 Years) 21.5% 20.0% 0.0% Old (36+ Years) 24.7% 30.0% 32.0% The majority (53.1%) of private owner reported that gross profit increased in 2014. The majority (32%) of marinas over 36 years old reported that gross profit increased in 2014. Conclusion The majority of respondents indicated stable to increasing occupancy rates in 2014 over 2013. Most respondents had an occupancy rate above 85%. Most respondents also indicated increased revenues. These are all positive indications for the marina industry. An article in Marina Dock Trends states that the market is improving for marina properties. The article reports that pre-recession, marina capitalization rates were around 5% to 6%. Post-recession through May 2014, capitalization rates were around 10%. Since May 2014, capitalization rates for marinas began decreasing. Though the boating industry experienced a decline in revenue and participation during the recession, demand for slips far exceeds the current supply. Many industry experts as well as local brokers in IGY American Yacht Harbor Marina HOUSE_OVERSIGHT_018839