November 1, 2018 1

Update on the San Francisco Marina Industry Marina and Boatyards Committee Bay Planning Coalition

Presented by Dr. Joshua Burnam, Anchor QEA Update on the San Francisco Marina IndustryNovember 1, 2018

Discussion Outline • Overview of US and California boating • Metrics associated with berth size, boating economics, and

demographics for the San Francisco Bay – Boat industry size – Boat market demand – Marina data and berth pricing – Comparable data in primary California regions

• Recreational boat industry trends relevant to BCDC • Committee activities

Update on the San Francisco Marina Industry November 1, 2018 2

National Boating Trends

• US is half the world market in boats – $121 billion in economic benefit – 650,000 jobs; 35,000 businesses

• 1.2 million boats sold annually in the US – 250,000 new boats – 95% of new boats are made in the US

Update on the San Francisco Marina Industry November 1, 2018 3

California Boating • More than 800,000 registered boats • $8.9 billion in total economic benefit

– 48,400 jobs; 3,062 businesses

• 8,000 new recreational boats sold in 2016 • 4,000 personal watercraft

Update on the San Francisco Marina Industry November 1, 2018 4

Other California Boating Data

• More desirable locations have highest rates – Dana Point, Newport, Lido – Longest wait lists too (20+ years)

• Most southern California publicly owned marinas are independently managed – Experience, long planning horizon

Update on the San Francisco Marina Industry November 1, 2018 5

San Francisco Bay Boating Infrastructure

• A premier US boating region • 57 marinas in the San Francisco Bay

– Most over 50 years old, numbers in decline – Five marinas closed in the last 10 years in the South Bay

• Two more expected to close soon – Services (boatyard/fuel) are also declining

Update on the San Francisco Marina Industry November 1, 2018 6

Slip Size Number of Slips Less than 25 feet 1,880

25 to 30 feet 5,381 30 to 35 feet 3,370 35 to 40 feet 2,775

50 feet 1,142 60 feet 338 70 feet 32

80 feet and more 21

San Francisco Bay Metrics • 17,700 wet slips in the San Francisco SF Bay

– 80% occupancy

• Demand increases with size; proximity to San Francisco • Abundance of small slips, few large slips

(+side-ties)

Update on the San Francisco Marina Industry November 1, 2018 7

6,000

Slips in the Bay Area by Size Bay Area Slips (Total: 17,700)

5,000

4,000

3,000

2,000

1,000

0 25' 30' 35' 40' 45' 50' 55' 60' 65' 70' 80'

Update on the San Francisco Marina Industry November 1, 2018 8

Boating Trends in California • Smaller vessels are increasingly trailered

– Less costly – More flexibility – Lower maintenance – Trailerable vessels up to 35 feet are common

• Dry-stack/dry storage increasing – Cities want boats off roads and driveways – Demand for launch ramps and storage is high

• Increase in size of first time boat ownership • Net result = lack of demand vs. abundance of small slips

Update on the San Francisco Marina Industry November 1, 2018 9

Bay Area Berthing Costs • San Francisco Bay has lowest berthing rates in California

– San Francisco has highest housing costs in the US – Average boater income the same as average resident income

• Berthing fees based on square footage, not length • Market demand drives cost, not size • MRA tracks fees in all regions of California

Update on the San Francisco Marina Industry November 1, 2018 10

Berth Cost in the Bay Area (per foot)

$16.00

$14.00

$12.00

Double Finger Berth Cost per Foot

$10.00

$8.00

$6.00

$4.00

$2.00

$0.00 25' 30' 35' 40' 45' 50' 55' 60' 65' 70' 80'

Update on the San Francisco Marina Industry November 1, 2018 11

$20.00

$18.00

$16.00

$14.00

$12.00

$10.00

$8.00

$6.00

$4.00

$2.00 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Santa Barbara Ventura Harbor Channel Islands Harbor Marina Del Rey King Harbor Los Angeles Harbor Long Beach Harbor Dana Point Harbor Oceanside San Diego Bay San Francisco SF East Bay

San Francisco Bay versus California Trends in Effective Slip Yields

Update on the San Francisco Marina Industry November 1, 2018 12

Summary of Key Concepts

• Bay Area rates are 1/2 to 1/3 less than the rest of

California

• There is an over-abundance of small slips

– Large yachts are less than 1% of the total

• Marinas and boatyards are declining in number even

though population is increasing

• Operators cannot afford to build or maintain marinas

without adjusting slip mix to the market, and are already

facing low fees

• Applications for new or modified marinas likely to reflect these issues.

Update on the San Francisco Marina Industry November 1, 2018 13

Other Committee Priorities • Focus on expanding the use of

administrative/regionwide/general permits for basic marina activities

• Rely on the BPC committee when judging new applications for marina issues – San Diego Port Tenant Association relationship is a good

example of this

Update on the San Francisco Marina Industry November 1, 2018 14

Update on the San Francisco Marina IndustryNovember 1, 2018 15

Thank You