The Taj Café in downtown Santa Barbara may be closed but the location at 905 State St. could be occupied by a new restaurant fairly soon.

Hayes Commercial Group is handling the lease for the 2,615-square-foot space after the Indian cuisine restaurant papered over its doors and windows in early March. There has been a lot of interest for a prime spot in the heart of downtown, Hayes associate Kristopher Roth said.

“The activity level is encouraging and we hope to fill the space up quickly quickly,” he said. “There very few restaurants available with the same visibility or quality.”

Although Roth didn’t know the specifics of the restaurant’s closure, the ownership is determine to find a qualified tenant and that will benefit the surrounding retailers.

“A lot of restaurant deals involve one business buying another business ,” he said. “It’s rare to see restaurant spaces for lease within those prime blocks surrounding Paseo Nuevo mall.

“This gives someone an unique opportunity to lease a space without paying an upfront cost of purchasing the business or the lease.”

The prime blocks in downtown Santa Barbara have been affected by the downturn, but the rents have remained relatively stable, Roth said, especially in the Taj Café location, which is adjacent to Forever 21, 901 State St., and has high foot traffic from Paseo Nuevo. Since 2008, achieved rates for real estate on the 600 to 900 blocks of State have decreased just 1 percent while rates on the 300 to 500 and 1000 to 1200 have dropped 31 percent.

Investors are starting to regain confidence and look to expand or open a new location, he said.

“Since 2008 businesses, regardless of the industry, have stepped back and assessed where the economy was headed,” Roth said. “But this year it seems people are beginning to make decisions to grow business and expand their concepts.”

— Noozhawk staff writer Alex Kacik can be reached at akacik@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Become a fan of Noozhawk on Facebook.