The Mandate
A second-generation marina operator expanding wet-slip and dry-stack capacity engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a USDA B&I financing request for a project located in Talbot County, Maryland. Total project capitalization fell within the $5M-$10M band. The capital provider, a USDA Rural Development field office working with a community bank, required documentation consistent with current program review standards. The analytical question put to the team: Did Chesapeake Bay registered-vessel growth and regional waitlists support 80 incremental wet slips and 120 dry-stack positions.
Engagement Scope
- Primary market area defined as a 40-mile drive-time
- Comparable supply set of 8 properties
- Demand model framework: regional vessel-registration and slip-waitlist absorption analysis
- Financial projection horizon: 10 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 40-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of marina assets in Maryland. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 8 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a regional vessel-registration and slip-waitlist absorption analysis approach over a 10 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 2.3 across the projection window, with a stabilized capture rate of 3.4%.
Exhibit 1: Comparable Supply Set, Maryland PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 10 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- Chesapeake Bay regional vessel registrations totaled 88,400 with average waitlists of 18 months.
- Comparable full-service marinas operated at 96% to 100% slip occupancy.
- Subject's existing waitlist of 162 vessels confirmed pre-leasing momentum.
- USDA B&I rural-area and equity threshold tests confirmed.
Deliverable
The delivered report ran 122 pages with 27 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the USDA Rural Development field office working with a community bank. The corresponding USDA B&I review framework guided exhibit selection and supporting documentation.