The cost of building a marina

How Much Does It Cost to Build a Marina?

Last Updated on February 5, 2024
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

Building a marina is a major undertaking that requires extensive planning, regulatory compliance, environmental impact studies, and a significant capital investment. But for developers seeking to tap into the lucrative recreational boating industry, marina construction can also yield high returns.

Full-scale marina development requires millions in investment but offers strong income potential in prime markets. Managing construction costs and optimizing berthing capacity are crucial to profitability.

The permitting process can be lengthy and complicated for aquatic projects. Ongoing operational expenses and debt service need to be balanced with revenue streams.

Convenient location, modern facilities, and exceptional service attract discerning boaters.

With careful planning and execution, marina investors can achieve excellent returns while contributing to the boating infrastructure of coastal communities. As demand rises, these waterfront developments will continue to increase in value and provide benefits for decades to come.

This article provides a comprehensive overview of the main factors that determine marina costs and the total budget for building a marina.

How Much Does It Cost to Build a Marina?

Building a full-service marina development with slips, docks, amenities, and infrastructure can cost anywhere between $5 million to over $100 million depending on the location, size, and features included.

The largest expenses are typically land acquisition if needed, dock construction costs, dredging costs to provide adequate depth, and building seawalls or breakwaters. But many other costs like permits, design fees, utility installation, and marina facilities must be accounted for.

With careful planning and cost control, marina investment can be profitable, especially in prime boating destinations. Understanding the complete construction budget and return on investment is crucial.

This guide examines the major cost components so developers can effectively estimate expenses and plan funding for aquatic projects.

According to DockBoxes a marina can cost anything from several hundred thousand to several million dollars to build. Smaller marinas with simple amenities may cost $500,000 to $1 million, but bigger marinas with full facilities and services may cost millions of dollars or more.

DockMaster says that building a marina in areas where the boating culture is widely appreciated, such as Florida, can cost around USD 8 million.

AccuDock notes that floating docks are typically considered the best option for marinas. They can be made with PVC decking, and the cost is typically around $60,000 per slip, but this depends on the docking material used.

Planning and Design Phase

The upfront planning and engineering design represents only a fraction of the total marina costs, but lays the critical foundation. Hiring specialists for studies and concept plans ensures the marina maximizes berthing capacity and customer appeal.

The main planning expenses include:

  • Marina design fees – $100,000 or more
  • Surveying, soil testing – $20,000-$50,000
  • Permitting and applications – $50,000+
  • Environmental impact studies – $100,000+

Optimizing layout and flow is essential to making the most of the waterfront footprint. Designers balance factors like prevailing winds, ease of navigation, and integration of landside facilities. Advanced 3D modeling helps visualize plans.

You might also like our articles about the cost of a boat house, boat dock, or floating dock.

Environmental and Regulatory Considerations

Constructing any major waterway development requires extensive reviews and permits from government agencies like the Army Corps of Engineers, EPA, local municipalities, and others. Common requirements include:

  • Environmental impact assessments
  • Navigational impact studies
  • Dredging permits
  • Threatened species evaluations
  • Water quality monitoring

Navigating the regulatory process takes 6-18 months typically and requires environmental consultants. Permitting costs can exceed $500,000 for large marinas. Strict guidelines also apply for materials and construction methods.

Construction Costs Breakdown

The physical development of the marina makes up the majority of the total budget. The largest components are:

Land Acquisition

If waterfront property must be purchased, prices range from $50 to over $500 per square foot depending on the location. Prime destinations demand premium pricing. For a 100-slip marina, 4-8 acres of land may be needed.

Dredging and Breakwaters

Dredging costs for marinas generally run $15-$30 per cubic yard to provide 6–15-foot depths for navigation. Breakwaters reduce wave action and must withstand storms. Materials like riprap rock or concrete cost $200-$500 per linear foot installed.

Docks and Slips

Dock construction makes up 15-25% of the budget. Floating concrete docks for berthing run $40-$70 per square foot installed. Individual slip costs depend on width but 40-60′ slips with utilities and finger piers can average $70,000-$150,000 each.

Facilities and Amenities

Onsite buildings for shops, facilities, and storage range from $200-$500 per square foot. Fuel docks, power pedestals, landscaping, lighting, and other fixtures add significant costs as well.

Financing and Investment

Marina financing often involves a mix of private equity, commercial loans, and public funding. Larger projects may secure bonds or other debt instruments. Investors can expect a 10–15-year timeline to achieve target returns on investment.

Marina pro-formas estimate revenues from slip rental, fuel, repairs, storage, and other services. Well-run marinas see 20-40% profit margins. But covering debt service, taxes, staffing, and operational costs reduces net income. Prime locations and strong demand help attract financing.

Operational Costs and Revenue Streams

Marina With BoatsBeyond construction, developers must budget $2,000-$4,000 per slip annually for ongoing marina operation costs like:

  • Staffing and management
  • Maintenance and repairs
  • Insurance
  • Utilities
  • Property taxes and fees

Marina revenue streams include:

  • Regular slip rentals
  • Transient slip fees
  • Fuel dock sales
  • Boat repairs and service
  • Retail, food, and amenities
  • Storage and launching
  • Memberships and events

Top facilities maximize berthing with larger slips for yachts over 40 feet. Offering first-class amenities and services caters to high-value clients and boosts income.

Frequently Asked Questions

What makes a great marina?

A great marina has a convenient, protected location, ample berthing for various vessel sizes, high quality floating docks, full-service amenities like fuel and repairs, spotless facilities, and exceptional customer service. Investing in modern, comfortable accommodations and a skilled staff is key.

How do you run a successful marina?

Running a thriving marina requires understanding local demand, offering competitive slip rental rates, maximizing berthing occupancy, controlling costs, training staff in hospitality, maintaining first-class facilities, and reinvesting profits to upgrade docks, amenities, and infrastructure.

Events, services, and good connections with the boating community also help.

How big is the marina industry?

The marina industry has over 12 million registered recreational boats nationwide and continues to grow at over 2% annually. There are over 4,000 marinas across the U.S. generating over $50 billion in annual revenue from slip rentals, fuel, maintenance, and other services.

Prime coastal regions see strong demand from recreational boaters and yacht owners, supporting ongoing marina investment.

Alec Pow
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *