Lessons from Three Decades in Commercial Real Estate Finance: A Take From Steven Maeglin (Written by Sean Benneh)

Commercial real estate finance is an industry where experience compounds over time.

Markets expand and contract, risk tolerance shifts, and execution strategies evolve with competition. Few people have seen these changes as closely as Steven Maeglin, a

longtime commercial real estate finance professional whose career spans more than 30

years across CMBS, structured finance, and loan origination.

In an interview with Maeglin, he offered a vivid look at how the industry has changed.

He gives us first-hand insight of what it really takes to navigate it successfully.

From Generalists to Specialists

One of the biggest changes Maeglin has witnessed is how commercial real estate

finance teams are structured today.

When he first entered the industry, loan originators were responsible for nearly every

aspect of a transaction. Underwriting, securitization, legal coordination, and investor

communication often fell on the same person. Today, the CMBS market is far larger and

far more segmented.

Banks now operate with specialized teams, each focused on a specific function. While

this allows for greater efficiency and scale, Maeglin notes that it has also changed the

economics of the business. As competition has increased, margins have been

compressed, forcing lenders to focus heavily on reducing risk before closing.

This shift has also altered how deals are bid. In a more competitive environment, some

lenders prioritize winning mandates first, with pricing adjustments coming later once true funding costs are clear.

Managing Risk Through Market Cycles

Even with decades of experience, Maeglin emphasized that risk is unavoidable in a

deal-driven industry.

“Unfortunately, nobody gets paid not to do deals,” he said.

When markets become overly competitive, his strategy shifts toward limiting exposure

rather than avoiding the market entirely. “When the market is too frothy, you just try to do agented business and not make bets,” he explained.

Experience has also shaped his outlook on downturns. “Cycles will always come and

go,” Maeglin said. “When things go badly, have faith that the market will recover.”

For him, understanding capital flows and not fighting broader market trends is essential to surviving–and thriving–over the long term.

Lessons in Risk and Culture

Maeglin credits much of his professional development to his time at Morgan Stanley.

“Morgan Stanley taught me how to look out for many different types of risk,” he said.

Beyond technical skills, the firm also influenced how he thinks about workplace culture.

“If you spend most of your waking hours at work,” Maeglin noted, “it should be fun.”

Being surrounded by capable people who take their work seriously without taking

themselves too seriously made a lasting impression.

The Changing Retail Landscape

Retail real estate–particularly super-regional malls–has become increasingly polarized.

“The performance of super regional malls is becoming ever more bifurcated,” Maeglin

said.

As wealth inequality has increased, malls serving high-income consumers continue to

perform well, while those targeting lower-income demographics face mounting pressure from e-commerce and big-box competitors. This divergence has made asset quality and customer demographics more important than ever in retail lending decisions.

Education and Experience

Maeglin’s academic path began in psychology before transitioning into finance through

an MBA program. While many assume psychology shaped his negotiation style, he

sees it differently.

“A lot of people think my psychology major would have given me some special insight

into how to negotiate,” he said, “but most of what I understand about that came on the job.”

His finance education, however, plays a direct role in his day-to-day work. “That’s where I learned how to think about concepts like weighted average cost of capital, debt versus equity risks and returns and option value,” he explained.

Much of what he knows about leadership, teamwork, and market dynamics, he added,

came from “the school of life.”

A Career Perspective

After more than three decades in commercial real estate finance, Maeglin’s insights

reflect a career built on adaptability, discipline, and patience. His experience highlights a central truth of the industry: success is less about timing the cycle perfectly and more about understanding risk, staying flexible, and trusting that markets eventually find their balance.