"There's a big demand for space everywhere," Annette Born, aspecialist in boutique real estate with Urban/Born Associates inBoston, tells GlobeSt.com. "People want to be in Boston and ifthey're in Boston, they want to be in other parts of Boston."

From the once gritty South End to East Boston, areas that werelong overlooked as trendy retail markets are now sproutingstorefronts touting luxury goods and upscale services.

The key to the changing face of neighborhood retail, says Born,has been a rapid change in demographics that has brought moreupscale tenants and homebuyers to Boston's once blue-collarcommunities. "Those people want boutiques in their area rather thanhaving to go to Newbury Street or Downtown Boston," she notes,adding the demand for retail space in some Boston neighborhoodssuch as the Back Bay and Beacon Hill is so strong, it is pushingrents up and vacancy rates down.