(Bloomberg) -- JPMorgan Chase & Co. named Michelle Herrick the next head of its $145 billion commercial real estate business, succeeding Al Brooks, who has overseen the unit for nearly a decade.
Herrick, who was named deputy head of the business earlier this year, will take over in January and report to John Simmons, JPMorgan’s head of commercial banking, according to an internal memo Wednesday. Brooks will become a vice chair for commercial banking.
The commercial-property industry has been plagued by economic uncertainty and a rapid rise in interest rates in recent years, with urban office buildings bearing the brunt of the weakness. The Federal Reserve’s first rate cut in more than four years prompted some early signs of life in the industry, with the potential for an active 2025.
In an interview, Herrick said the pandemic followed by the Fed’s rate hikes and quantitative tightening amounted to a major disruption, but that the bank and its clients are preparing for the sector’s cyclical nature.
“I would never bet against the future of large cities or the creativity that exists within the CRE industry,” she said.
Herrick joined the biggest US bank from Bank of America Corp. in 2017 as the central region market manager for real estate banking, and was promoted to run that business in 2021. In addition to real estate banking, JPMorgan’s commercial real estate unit also includes agency lending, community development banking and commercial term lending.
JPMorgan’s commercial real estate portfolio grew by nearly a third overnight last year when the firm scooped up failed regional lender First Republic Bank. The acquisition bolstered JPMorgan’s presence in the market on the West Coast, which had been tagged as a growth area for years.
Herrick oversaw part of that region at one point, sometimes making the round trip to Seattle from Chicago, where she’s based, in a single day.
Herrick adds to the ranks of women atop what was historically a male-dominated industry. Kara McShane has run rival Wells Fargo & Co.’s commercial real estate business since 2020, meaning two of the largest US commercial-property lenders will now have women at the helm.
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