NEW YORK CITY-After the downturn, vacant storefronts andshuttered stores lined the blocks of one of Manhattan’s mostunlikely neighborhoods--the Upper East Side. But as strongresidential growth continues to boom in the area, the86th Street corridor between 2nd and3rd Avenues is experiencing a mini-revival from a freshbatch of new national tenants.

The latest retail report from the Real Estate Board ofNew York shows a 36% increase in retail rents along the86th Street corridor since fall 2010 and 20% since thespring. Rents for ground floor space have gone from $293 per squarefoot to $398 per square foot, a sign the well-to-do neighborhood isregaining its footing. “There is a sense that the area is improvingand people are willing to be more aggressive in rents,”Michael Slattery, senior vice president of REBNYtells “The quality of the spaces that have come online are also quite good, which also tends to bump up the askingrents.”

The centerpiece of the neighborhood’s renaissance is the arrivalof grocer Fairway Market, who took a long-term 45,283-square-foot,long-term lease on four levels, including, 13,650 square feet onthe ground floor, 11,150 square feet on the mezzanine, 16,000square feet on the lower level and 4,483 square feet of sub-cellarspace at 240 E. 86th St. The market--the first newsupermarket to move into the Upper East Side in nearly 30years--filled the bones of a former Circuit City.

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