CRE Executive Perspectives with James Millon, Justin Wheeler, & Michelle Herrick

He was joined by James Millon, President & Co-Head of Capital Markets U.S. & Canada at CBRE Capital Markets, Justin Wheeler, Chief Executive Officer of Berkadia, and Michelle Herrick, Head of Commercial Real Estate at JPMorganChase.

Together, they discussed the state of the commercial real estate market and where we are in the cycle, the gap between buyers and sellers and what may unlock transactions, how AI and data centers are shaping investment and lending, lessons on leadership and culture, and what the next few years may hold for talent and consolidation in the industry.

1. Who are James Millon, Justin Wheeler, and Michelle Herrick? 

• James Millon is President and Co-Head of Capital Markets U.S. and Canada, CBRE Capital Markets, where he leads debt and structured finance and helps clients execute investment sales and capital strategy.
• Justin Wheeler is Chief Executive Officer of Berkadia, one of the largest multifamily lenders in the country and a major Fannie Mae and Freddie Mac originator.
• Michelle Herrick is Head of Commercial Real Estate, JPMorganChase, managing a large balance sheet and overseeing lending, construction finance, and client strategy across asset classes.

2. What are the top reasons to listen to this webcast?  ‍

• ‍A candid look at today’s capital markets from three of the largest CRE capital providers
  ‍They break down liquidity, debt capital flows, fundraising pressures, and the bid-ask disconnect in real time.‍
• A grounded discussion on AI, data centers, and workforce disruption
  The panel explores whether the AI build-out resembles the dot-com cycle and how firms are integrating AI internally.‍
• A forward view on multifamily, housing policy, and where to invest in 2026
  Each executive shares where they would deploy capital today and why.

3. How do the panelists describe today’s CRE capital markets environment?

Justin describes a market flush with debt capital, including lenders willing to step in at higher leverage levels. He sees strong liquidity on the credit side but hesitancy on equity placement, especially among institutions reluctant to reset pricing. James notes that assets will trade when capital must be returned and sees forced selling and fund maturities as catalysts for increased transaction activity.

4. Will 2026 bring a meaningful rebound in investment sales activity?

James believes transaction volume improves as financing stabilizes and bid-ask spreads tighten. He emphasizes that limited partners want distributions, not just net asset value marks, which pushes assets to market. Justin agrees that capital needs to recycle before new funds can scale again.

5. Are middle-market sponsors at risk of consolidation?

Justin believes track record matters more now than in the easy capital years of 2021. While multifamily ownership remains fragmented, he expects some fallout among underperforming funds and sees stronger operators gaining share as fundraising becomes more selective.

6. How disciplined is construction lending today?

Michelle describes JPMorganChase’s posture as risk consistent rather than risk on or risk off. She explains that construction lending remains active but far below 2021 levels, with strong client selection and underwriting discipline guiding capital deployment.

7. Is the AI and data center build-out a bubble risk?

The panel acknowledges enormous capital flows into data centers and AI infrastructure. Michelle emphasizes borrower quality, tenant strength, and syndication as key safeguards. James highlights underwriting differences between investment-grade hyperscale tenants and riskier profiles. There is caution, but no consensus that it mirrors the dot-com collapse.

8. How are their firms using AI internally?

Justin explains that Berkadia’s internal AI platform aims to automate repetitive processes so employees can focus on advisory work and client engagement. James describes leveraging proprietary transaction, servicing, and valuation data to improve strategic advice and risk assessment. Michelle views AI as a productivity enhancer that reduces task work while preserving human judgment.

9. What is their outlook on multifamily and housing policy?

The panel sees multifamily fundamentals stabilizing, especially as new supply moderates. With Fannie Mae and Freddie Mac maintaining liquidity, the agencies continue to anchor the market. Broader housing affordability remains a policy focus, with leaders noting the need for supply in constrained markets like New York.

10. If each panelist can make only one investment or loan in 2026, where would they go?

Justin Wheeler chooses office in San Francisco as a high conviction recovery play, with a lighthearted nod to potato farmland in Idaho. James Millon targets trophy office in New York City, favoring senior debt at attractive yields and discounted bases. Michelle Herrick selects multifamily in supply constrained markets such as New York, citing durable demand and limited new supply, while noting selective upside in office turnarounds.

Watch or listen to the replay.