. >> plus, we will be joined onset by don peebles.hile many are worried about the commercial real estate market, he thinks that now is a great time to buy. first let's get a check of the markets. they are rebounding. today's gains aren't enough to save the major averages from a losing week to start the second quarter, tyler. >> all righty. let's start with a jobs report from this morning. it was a whopper. u.s. employers hired 303,000 new workers this month. a blow-outcome paired to just 200,000. the unemployment rate down to 3.8% as expected. wages rose in line, however, with expectations. what does all this say about the state of the la boar market and the overall health of the economy. let's ask seth, former acting u.s. secretary of labor under president obama. good afternoon. welcome. good to have you with us, seth. >> thanks, tyler. good to be with you. >> does this put a stake in the heart of those that expect a recession over the next 12 to 18 months. >> well, it doesn't put a stake in the heart of the people, but it definitely

bank, and the turmoil that followed in the banking sector while that turmoil has sort of settled, don peebles the shift on rate cuts could lead to new trouble. what is's hurting the real estate industry also is that with these losses in terms of occupancy is the interest rates are more than doubled. that's made these buildings essentially almost all of them in major cities insolvent. in the fed does not drop rates, these buildings, there will be a catastrophic i believe events going back to these local regional banks >> our next guest is at the help of a mid-sized banks and says higher rates haven't been an issue so far for her and her company. let's welcome priscilla sims brown, one of the 2024 cnbc changemakers, spotlighting women whose accomplishments have left an indelible mark on the business world good to have you with us, ms. brown. >> thank you >> and congratulations on being a changemaker, which is a title you have justly earned let's go back to what don peebles said there, predicting a catastrophic effect on commercial real estate i think he's speaking mostly of office buildings if

coming up on power lunch, we will have don peebles.in tyler on the other side of this quick break. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. ♪ >>> good afternoon and welcome to "power lunch," everybody. i'm tyler mathisen. stocks rebounding from yesterday's late day selloff, following a stronger-than-expected jobs report. why are the markets liking a report that seems to give the feds cover to stay higher longer? we'll discuss. >> plus, we will be joined onset by don peebles. while many are worried about the commercial real estate market, he thinks that now is a great time to buy. first let's get a check of the markets. they are

joining me now is the people's -- peebles' corporation chairman and founder don peebles.thinking these days about commercial real estate? we've been worried about these loans coming due and perhaps a problem specifically on commercial real estate. >> well, the worst is ahead of us. i mean, i think that a interest rates are are not going to drop as quickly as people anticipated. if people are not coming back to work, and many of these buildings, the vast majority of these office buildings in cities like new york, san francisco, los angeles and other major markets are insolvent. and if so we will see those properties increasingly go back to their lenders which will be local and regional banks because 82% of those loans are held by local and regional a banks. and i think that will bring considerable stress into those sectors in terms of banking. and also it's drying up capital for entrepreneurs and small businesses. maria: well, this is a big issue as well. mark tepper, jump in here, because this is something you've been expecting for some time. >> yeah. but you know what? i

global office footprint joining us now to walk us through the commercial real estate market is don peeblesthe peebles corporation ceo and chairman good to have you this morning. >> good to be here >> we're four years out from the lockdown moment and we have been waiting for commercial real estate to either rationalize or whether it is going to get worse or we're going to get through the problems and work it out on the financing side what are the trends today in terms of companies rethinking how much space they need >> well, all companies -- most prudent companies and larger ones have reconsidered how they do business and how thueir employees work and that was happening before covid. law firms were doing hoteling where no one got an assigned office anymore and they -- you had larger corporations doing that. and then covid just accelerated it and also what is happening, also, in the tech sector, their business is being more efficient, all about being more efficient. you can expect them, historically, companies grow and then they kind of level off and downsize a bit, because they can be more

it goes back to our conversation with don peebles the other day.on is trending in the right direction, people are still feeling the rising costs. >> $100 worth of groceries three years ago, people see it and they feel it. it is probably the reason why if you are a small business person or ordinary voter, people do not presume the economy is as good as the numbers say it is. >> potentially higher gas prices as well. >>> one million-dollar homes are becoming typical in a number of u.s. cities according to an analysis by zillow. the boost in $1 million cities, there are now 550 of them across the united dates, and seems to be caused in part by mortgage lot in effect. naples, florida currently holds the most expensive home for sale in the u.s.. that is one thriving city. >>> paramount losing more than one third of its value since early december when reports a sale. the lack of enthusiasm due to the company's ownership structure which would tilt any deal to benefit the redstone's of her regular shareholders. the company is reportedly in talks with scott