Last Thursday, Britain took to the polls and voted to leave the European Union in a referendum that was too close to call ahead of the vote.
The final tally was fairly close, with 51.9 percent of roughly 31.9 million majority votes cast for the “leave” option. In essence, Britons collectively chose to pick up their marbles out of various EU financial playgrounds, hop back across the English Channel and go home.
According to some experts in the industry, the United Kingdom government should act promptly to negotiate new trade agreements with the EU, its single largest trading partner. According to the Treaty of European Union, parties involved are granted a two-year deliberation period, which would be triggered by a formal notification in which agreements must be made unless both parties agree to extend the time frame.
Insiders believe these negotiations, should they fail to progress in a promising fashion, could impose a second shock on the U.K. economy around 2017 or 2018. While no country has left the EU in its 25-year history, Greenland’s 1985 exit from the European Economic Community — a precursor to the EU — took three years to negotiate.
According to Wes Coody, president of C2 Wealth Strategies headquartered in Mobile, the decision by U.K. voters to leave the European Union will have profound effects on the U.K. market, the entirety of Europe and broader global markets such as the United States.
Coody outlined some short-term investment ramifications, as follows:
Stocks may correct. Expectations are for U.K.-based stocks to correct swiftly and drag Europe-based stocks down with them, as investors seek more conservative investments.
Bond yields may remain at or near historical lows. Investments will flow to perceived safe-haven bonds, such as U.S. Treasuries and German government bonds. These investments should further suppress bond yields.
U.K. recession is possible, with potential issues flowing to Eastern Europe and Asia. Capital outflows from the U.K. amid such uncertainty could cause the world’s fifth-largest economy to fall into recession.
Despite expectations for a more volatile environment, Coody isn’t recommending any wholesale investment changes based on the Brexit outcome.
Commercial real estate moves
Cummings & Associates handled the sale of the southwest corner of Airport Boulevard and Glenwood Street in the Loop area of Midtown Mobile by a local investor for $865,000. The space was formerly occupied by Antiques at the Loop and the adjacent building by Benjamin’s Restaurant. A new pawn shop business will occupy the 11,000-square-foot former Antiques at the Loop property; the former eatery space will be available for lease.
John Delchamps with the Merrill P. Thomas Co. Inc. recently handled a sublease for an 11,000-square-foot office and warehouse property at 2220 Michigan Ave. in Mobile. The new tenant is Chamblee, Georgia-based Pumping Systems Inc. This will be its second location in the area, fourth in the state and 10th overall.
I Do Bridal and Formal, a full-service bridal and formal boutique, has leased 7,200 square feet of retail space at Providence Place Shopping Center, 6920 Airport Blvd. in Mobile, and currently occupies the building. Nathan Handmacher with Stirling Properties handled the transaction.
Lewis H. Golden with Hamilton & Co. recently assisted in leasing a fourth location for locally owned Mediterranean Sandwich Co. at 3702 Airport Blvd. in Mobile. The 2,668-square-foot restaurant space is the former location of Istanbul Grill. Mediterranean Sandwich Co. plans to renovate the space and update the kitchen to serve as a commissary for its three other locations: 2502 Schillinger Road S. in West Mobile, 274 Dauphin St. in downtown Mobile and Jubilee Square in Daphne. The popular Greek-themed eatery’s newest spot is expected to open sometime later this year, according to Golden.
Guelph, Ontario, Canada-based Danby Appliances recently announced the grand opening of its retail outlet store and warehouse in Saraland. A ribbon-cutting ceremony will be held Monday, July 11, 3-5 p.m. at the new warehouse, located at 252 Jacintoport Blvd. in Saraland.
The space is Danby’s new southern distribution center, serving customers in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, South Carolina and parts of Texas. The warehouse is on a 125,000-square-foot site and includes a small factory-outlet retail store. It employs 25 full-time local workers.
Deep Fried Studios recently relocated from 15 St. Emanuel St. in downtown Mobile to a brand-new facility at 951 Government St., on the ground floor of the Marine Street Lofts. DFS will be integrated inside a new co-working space called the Container Yard.
White-Spunner’s Wilson earns CCIM
According to a news release, Michael Wilson, 23, of White-Spunner Realty Inc. has become one of the youngest professionals in the country to earn the Certified Commercial Investment Member designation from the CCIM Institute, one of the world’s leading commercial real estate associations.
Wilson was among 149 commercial real estate professionals from around the country who earned the designation by passing the CCIM Comprehensive Examination, the final component in the designation process. Only about 6 percent of the estimated 150,000 commercial real estate practitioners worldwide hold the CCIM designation, which reflects not only the caliber of the program but why it is one of the most coveted and respected designations in the industry.
Wilson joined WSR in 2014 as a licensed agent. His focus is in Baldwin County, one of the state’s fastest growing communities. He earned a degree in business administration from Birmingham-Southern College, where he attended on a four-year academic scholarship.
“To be successful in commercial real estate, our industry requires a level of commitment exemplified by the time and focus Michael maintained to earn the CCIM designation,” Mike Reid, qualifying broker at White-Spunner Realty, said.