Real Estate Reels After Pratt, Raman, Bass Duke it Out in Debate

The day after the first mayoral debate featuring a trio of candidates dubbed the race’s frontrunners left some in real estate wanting a fresh face at city hall.

It’s an election some are calling one of the most consequential in years for the nation’s second-largest city as voters look for an overhaul of public safety, leadership, housing and homelessness.

Wednesday evening’s debate marked the first time mayoral hopeful and former “The Hills” reality TV star Spencer Pratt shared the stage with competitors Karen Bass and Nithya Raman. The lively conversation came just as early voting by mail kicked off for the June 2 primary election.

Some in real estate weren’t pleased with what they heard from the duo of existing politicians on stage: incumbent Mayor Bass and Raman, who represents the 4th District in City Council.

“Last night’s debate made one thing clear — Karen Bass is going to have to earn the public’s trust back,” Cristian David, Sotheby’s International Realty Southern California executive vice president and Beverly Hills brokerage manager, said.

The city is in need of leadership, David said, rather than more promises when it comes to bringing back confidence, safety and momentum in Los Angeles.

“L.A. is ready to rebuild,” he said, referring to management of the city. “However, I don’t know if Bass is the right architect.”

Michelle Schwartz — managing partner of The Agency’s Sherman Oaks, Studio City and Calabasas offices — offered a similar take.

In her view, she said the debate simply confirmed, “We as Angelenos have been and continue to be gaslit by those currently in charge.”

Schwartz said she wished Pratt’s points on regulations that have infringed on homeowners and landlords would have been given more airtime, given their implications on housing affordability.

That’s a reference to a dig Pratt made against Raman’s plan to boost housing units, despite a track record that he said allowed the rights of squatters to trump those of paying tenants and landlords.

“Guess what? She’s going to sue all the people that actually rent to the tenants and then they’re not going to even want to rent to anybody because she wants people to squat [somewhere] for a year and not pay,” Pratt said during Wednesday’s debate.

Raman countered by reducing what Pratt said as a “MAGA Republican’s idea of what Los Angeles looks like.”

The council member, who is on her second term in office, has built a track record of supporting policies that bolster renter protections and tenant rights. It’s a point of contention with some landlords that say such policies have cracked down on their livelihoods as apartment owners.

“The status quo is not working for our city, for property values, for homeowners or for renters,” Schwartz said.

Schwartz’s colleague at The Agency’s Beverly Hills office, Zach Goldsmith, said based on what he hears from his peers in the industry, many are leaning toward Pratt. Distrust in career politicians factors into that.

For Goldsmith, he said he went into the debate with an open mind looking to hear each candidate’s position and strategy for turning the city around.

“During the last mayoral race, I was a big supporter of Rick Caruso and I felt similarly to the way I do now that Los Angeles has got to be run like a business,” Goldsmith said. “We’ve got [thousands of] city employees, the biggest port in the world and one of the biggest departments of water and power in the world.”

When asked if any of the three candidates seemed the most capable of operating the city like a business, Goldman suggested Pratt as the closest to pulling off such a feat.

“That’s because [Pratt] is really an outsider to politics,” Goldman said. “I don’t think he will be as held back by all the red tape that your typical politician will be.”

Ultimately, Goldman said his industry peers’ businesses hinge on the city’s successes, and it’s been tough the past few years. He cited Measure United to House L.A., the two-tier tax on real estate deals starting at $5.3 million, as well as the potential 2026 Billionaire Tax Act which will be on the ballot, as drivers of movement away from the region.

“This city and state have to get back to a business-like format where we are encouraging growth and we’re not penalizing those who create wealth and jobs,” he said.