10 Years of Connect LA: 2025 Conference Recap

Gantry was pleased to join nearly 600 industry peers in Downtown Los Angeles for the 10th annual Connect LA conference, hosted by Connect. The event brought together thought leaders across real estate, capital markets, development, and public service for a candid conversation on where we are and where we’re heading.

While Los Angeles navigates natural disasters, policy shifts, and preparations for the 2026 World Cup and 2028 Olympics, panelists agreed: real estate fundamentals remain strong, capital is available, and the region continues to present meaningful opportunities.

As one of the nation’s largest independent mortgage banking platforms, Gantry is on the front lines of these market dynamics daily. Here’s what stood out:

The Market Has Repriced And Capital Is Ready

The 10-year Treasury is expected to hold near 4.25% through year-end, and the market has largely adjusted to this new interest rate environment. Capital is not the constraint, it’s all about execution. Well-structured deals with realistic valuations are still getting done.

Debt Liquidity Is Strong, but Disciplined

Unlike past cycles, lenders are actively quoting. However, borrowers must align their business plans with current underwriting standards. Leverage is lower, spreads are wider, and credit committees are focused on cash flow durability.

The Era of Extend-and-Pretend Is Ending

Lenders are increasingly calling in maturities—both scheduled and extended. Sponsors without a viable refinance path will need to consider alternative solutions, including recapitalization, loan sales, or asset disposition.

Loan-to-Own Is Back

A growing number of opportunistic investors are acquiring non-performing loans with an eye toward ownership. As lenders become more willing to sell, this strategy is gaining momentum, particularly in transitional or distressed asset classes.

A Reset in Basis Is Underway

There is more capital on the sidelines than headlines suggest. As property values continue to reset, especially across office and land, expect to see increased transaction volume driven by sponsors who are prepared to transact at current-market pricing.

Development Faces Structural Headwinds

Construction remains challenged by volatility in labor and materials, driven in part by broader immigration and tariff policy. These uncertainties are delaying starts and complicating feasibility, especially in ground-up projects without clear demand drivers.

Southern California Industrial Is Watching Policy Closely

Tariff and trade uncertainty is a concern for industrial owners in the near term. However, demand drivers including logistics, reshoring, and consumer proximity, continue to support a strong long-term outlook for the sector.

Office Remains the Most Pressured Asset Class

With return-to-office trends stalling in many core submarkets, office properties, especially in Downtown LA, are facing elevated vacancy and value erosion. A growing number of owners are exploring conversions to residential, particularly where basis has reset and zoning allows.

Leadership Still Matters

Rick Caruso closed the event with a powerful message on the future of Los Angeles, blending his deep experience in real estate with a commitment to civic leadership. His optimism was grounded in a belief that LA’s challenges are solvable, with the right vision and resolve.

Final Thoughts

Southern California remains one of the most important and dynamic regions in the country. While the path forward is more complex than in previous cycles, it’s clear there is opportunity for sponsors who understand the market, adjust to new realities, and are willing to move with discipline.