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For their second challenge, the nine remaining Designers must transform an old industrial warehouse loft into a multi-functional space for living, eating, sleeping and working. The Designers divide into teams to take on the various areas. Some teams get along swimmingly, but others butt heads under the pressure. In keeping with the theme of repurposing this old warehouse loft, each Designer must also creatively update a vintage item and integrate it into their space. This item forms the basis for their first camera challenge, intended to test their TV hosting abilities. Host and Mentor David Bromstad asks each contender to show the viewers how they are transforming and using their vintage item. The performances are wildly varied, from smooth and slick to comically disastrous. At Evaluation, the Designers must defend their work before the Panel, HGTV hosts Genevieve Gorder, Vern Yip and Sabrina Soto. The winner of the Loft Challenge is declared, and one Designer is eliminated from the competition.