The strong rental rates that Related Cos. is seeing with Hikari may be further evidence of what real estate experts have been forecasting for Downtown: a chill settling on the recently hot condo market and a spike in rentals. In 2006, the average rate for studio rentals in new apartment buildings (built after 2000) was $2.63 per square foot, said Dr. Delores Conway, director of the Casden Real Estate Economics Forecast. Hikari's studio units, said Prilik, are renting for as much as $3.39 per square foot. That price is not totally unexpected, said Conway, but it is near the top of the market. "Rents for in-town have been going up, there's no doubt about it. They've been going up about 6% this year," she said. Although Little Tokyo has been growing, the new Hikari residents are actually ahead of the residential trend, as more developments are rising in the area with pedestrian-friendly blocks, existing housing and abundant amenities. The Teramachi senior housing project will soon open at Third and San Pedro streets. Two other large complexes are being built at Second and Hewitt streets.
January 29, 2007