By (Reuters) – U.S. banking giant JPMorgan Chase (NYSE:JPM) on Wednesday named insider Michelle Herrick as its head of commercial real estate business, effective January, succeeding Al Brooks.
Herrick, who joined the largest U.S. lender in 2017, will take on the role at the biggest CRE unit in the country at a time of significant turbulence in the sector.
CRE loan portfolios across the U.S. banking industry have faced growing concerns over defaults in the past two years, as elevated interest rates keep refinancing costs higher and a lasting post-pandemic shift to remote work leaves office buildings vacant.
In the most recent quarter, executives from several U.S. banks expressed optimism that the September rate cut and expectations of additional cuts from the Federal Reserve will alleviate some of the pressure on the CRE sector next year.
JPMorgan had appointed Herrick as the deputy head of the CRE business earlier this year. She previously led the lender’s real estate banking unit, housed within the broader CRE division.
The bank added that Brooks will become a vice chair for commercial banking next year and advise teams across JPMorgan in the new role.
Herrick – a two-decade CRE industry veteran who has also worked at rival Bank of America – will report to John Simmons, head of JPMorgan’s commercial banking arm.