Mainebiz

W W W. M A I N E B I Z . B I Z 15 JA N UA R Y 7 , 2 0 1 9 F O C U S 2 0 1 9 E C O N O M I C O U T L O O K W E A LT H M A N AG E M E N T Spinnaker's Rand 'cautious' of financial market headwinds B y r e n e e C o r d e s A s Amanda Rand embarks on her second year as president of Portland-based wealth manage- ment firm Spinnaker Trust, she sees headwinds that could put a damper on financial markets. "We're 10 years into the bull market that started after the Great Recession. at's a long time," she says. "We're certainly more cautious going into 2019." Specifically, she says that after returning to more volatility last year, markets are closely following anything said about trade issues. She also notes that a strengthening dollar is "not great" for multinational corporations, and that ris- ing interest rates are challenging for businesses but are offset by the fact that companies are doing well from an earnings standpoint. As for Spinnaker Trust, she says that 2018 was a great year in terms of new business, and is hopeful that 2019 will bring more of the same. ough most of the firm's clients are in southern Maine, they extend up the coast to Bar Harbor — and nation- wide, though always with a tie to Maine. "We like to joke that we're right here at world headquarters on Free Street," she says. "More and more clients value that." She says there are no immediate plans to add to the current roster of 32 employees, adding: "If we continue to grow in terms of the client base as much as in 2018, we might have to do a little more, but for now it's just strategic." Staying ahead of the curve on technology will also remain a priority after Spinnaker went through a major platform conversion in 2017. It now offers clients the option of using the Spinnaker Connect mobile application. Looking at the broader political picture in Maine, Rand and her colleagues will be watching for any new tax policies that may affect Spinnaker's client base of high net-worth individuals, as well as what Gov. Janet Mills's focus on alternative energy portends for Maine's economy. "We have the natural resources here to be a significant player in that," she says. Rand adds that Maine stands to benefit from the revised U.S. trade agreement with Mexico and Canada, especially if the latter allows the United States to export more dairy products. EDITOR'S NOTE: This interview was conducted in December, at a time when the world markets were especially volatile. R E A L E S TAT E Realtor sees 2019 in historical perspective B y W i l l i a m H a l l S ue Spann has witnessed good times and bad since she and her husband, Don, opened RE/MAX Riverside Real Estate Co. in 2002. In 2014, she thought the Topsham business "had hit its top end," with $125 mil- lion in sales. "But we've seen improvement every year since 2012," she says, citing the 2017 sales total of $163 million. Now she's wondering how business can get any better for her 32-broker agency — and for Maine's real estate market in general. "It's going to be really hard for it to improve even more," she says. But a decade after the Great Recession brought new construction in Maine "to a grinding halt," she's excited by its resurgence. "I love seeing the increase in new con- struction [Maine] is experiencing. at's a sign of a healthy market," Spann says. She feels the Brunswick area is particularly well-poised to meet the demand for Maine real estate. e Portland market faces a "critical shortage" of inven- tory, she says, while new properties — such as hundreds of homes at Brunswick Landing, the redeveloped Navy air base — are coming online. "We see that people are appreciating the value of Brunswick, with its schools, a 30-minute commute to Portland, and the quality of place here," Spann says. But is there a danger that Maine real estate is in the midst of another bub- ble that will burst, perhaps in the coming year? "I don't see that," says Spann. Unlike previous boom-and-bust cycles, she believes the current real estate market will withstand fluctuations in supply and demand. "is market can take care of itself. I see it being strong and balanced in 2019," she says. Spann has a wait-and-watch attitude about how Gov. Janet Mills might affect Maine's real estate industry or the economy as a whole. But with nearly two decades of real estate experience, Spann tries to keep such unknowns in perspective. "I choose not to look for doom and gloom," she says. "And these days, how can you look at (Maine real estate) with anything other than optimism?" H O S P I TA L I T Y Inns face challenges, but finding buyers is not one of them B y l a u r i e s C H r e i B e r R ick Wolf is an owner and partner with the B&B Team, specializing in lodg- ing brokerage and consulting. Despite uncertainty in the stock market and "the chaos" of national politics, he's bullish on the lodging industry. e market will remain robust as buyers con- tinue to seek opportunities in Maine. "ere were a couple of ticks up on the interest rate, but it's still at incredibly low levels, which is attractive," he says. "One thing we've seen more is buyers recog- nizing that they can utilize their 401(k) restricted retirement funds and self-direct them into a new corporation. It is their corporation, so they're investing in them- selves, which gives buyers greater control over their investments." In addition, banks remain interested as lenders, he says. "ey recognize the importance of what hospitality contributes to the Maine economy," he says. On the operations side, workforce shortages will continue to plague the indus- try. "e H-2B visa is a political football," he says. "But there are no quick fixes." e shortage affects inn-keeping operations and will continue to do so, especially in competitive markets with multiple hospitality properties, but limited populations. "It all reflects on the total package the inn is offering," he says. "If you have a good staff, you need to care about them — how you treat them, how you pay them, how you empower them so they feel their contribu- tion makes a difference." e worker shortage is not expected to stall the buyer's market. "Fundamentally we remain optimists," he says. "We just put a property under letter of intent yesterday, we've got closings coming up between Christmas and New Year's. We've got a couple more in the works. I'm talking with a couple this morning who I believe will be putting in an offer on a property. So Maine remains very active." Sue Spann Rick Wolf P H O T O / C O U R T E S Y O F S U E S PA N N P H O T O / C O U R T E S Y O F R I C K WO L F We're certainly more cautious going into 2019. — Amanda Rand Spinnaker Trust Amanda Rand P H O T O / C O U R T E S Y O F M . L E O N A R D I N T E R N AT I O N A L I N C . P H O T O / C O U R T E S Y O F S P I N N A K E R T R U S T

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