> Update 2006
Recent Trends
The state of wet and dry dockominiums and rackominums across the state of Florida and elsewhere continues to evolve dramatically from year to year. Multiple factors have had an impact on the market, the greatest of which continues to be more marinas and boatyards being purchased and converted to condos, residential and otherwise. Various marine industry efforts mounted over the months to preclude such outcomes have stemmed the tide somewhat, but seem unable to impede the tidal wave of changes coming our way.
Here are just some of the trends the group has been following this year:
The rapid proliferation of dry rackominiums with various business models from boat club to high end resort like amenities has resulted in an excess of new product in the marketplace at large. Conversion of hundreds of slips in multiple markets has resulted in much slower absorption rates and some price resistance as well. Investors are affecting this segment of the market, but will eventually give way to end users. Watch for a settling of this segment of the market through the end of this year and well into next.
In the wet slip dockominium arena, newer projects continue to come on line, albeit more slowly as increased acquisition and development costs have limited the players and type of product somewhat. There is a definite trend towards satisfying the needs of larger vessels and their owners in the major yachting markets, thereby setting the pace for both pricing and amenities offered. Look for slightly slower absorption rates and price stabilization in the months ahead.
Resales of existing product, both wet and dry have continued, but at a slower pace than last year. Expect some peaking of pricing back to more reasonable growth rates year over year, as opposed to the trend of the last several.
Finally, a new phenomenon has recently emerged. More mature private yacht clubs are making available their slips available in the form of equitized memberships and dockominiums. Watch as long time communities compete with the “new” by upgrading their older facilties and offering competitively priced opportunities.
