Lower East Side oasis continues to elude chains .

Historically, the Lower East Side of Manhattan was home to immigrants in cramped tenement buildings, looking to embark on the American adventure. By late in the 19th century, the neighborhood's diversity continued with Irish, Italian, and Central European settlers who came to the Unites States in the hope of finding economic prosperity.

Even up to the early 20th century, entrepreneurs walked the streets selling merchandise out of potato sacks slung over their shoulders.

The entrepreneurial environment of the past remains today, making the Lower East Side an eclectic melange of emerging artists, young professionals, and innovative shopkeepers. Almost more surprisingly, the area has emerged as an alternate restaurant destination in the evenings and a diverse bar and club scene into the early hours of the morning.

With diverse retail on the street front and residential space above, the LES is a "true" New York neighborhood. As opposed to the larger apartment complexes that dominate the well known residential pockets of the city, the buildings on the LES date back to the 19th century and give the area an authentic old-world flavor.

Located east of NoLita and SoHo, and just south of Houston Street, the LES is one of the top destinations for unique fashion, dining, and nightlife. There is a feel of urban chic in the area without the presence of well-known and mainstream retailers that one sees in SoHo. Old-fashioned shops sit side by side with new boutiques and art galleries, providing a mix that is organic and free from the kind of pretense that tends to characterize neighborhoods like the Meatpacking District. For those who are not locals of the LES, a true sense of "neighborhood" rapidly emerges.

Once the LES's best kept secret, Foley & Corinna has become a destination shop for stylish women from across New York City and around the globe. Many of the storefronts like Recon (237 Eldridge Street) and Marmalade (172 Ludlow Street) are disguised in order to shield shoppers from overt marketing. Among these obscure boutiques are specialized vintage shops like David Owens Vintage Clothing and Frock, unique sneaker shops such as Alife Rivington Club and Nort 235 (Best of New York Winners, Best Sneakers 2003 and 2004), and art galleries like Melissa Bent and Mirabelle Marden's Rivington Arms.

Clinton Street has been referred to by The New York Times as the "Restaurant Row" of the Lower East Side.

An amazing number of bars, bistros, and gourmet OF eateries have sprouted on this avenue in the last few years. Pioneering this the c upward trend was chef Wylie Dufresne of 71 Clinton Fresh Food, the street's first "destination restaurant."

In 2003, the former chef de cuisine of The Bellagio's Prime opened WD-50, across the street and down the block from 71 Clinton Fresh Food. There are plenty of other notables interspersed between the shops, salons, and assorted businesses found on the three blocks between Houston and Delancey, including Keith McNally's Schiller's Liquor Bar, Moby's vegan tea room and cafe Teany, 'inoteca, the more spacious cousin of Bedford Street's 'ino, and of course, the famous Katz's Delicatessen.

Unique to the streets of the LES is the lack of national or even regional names. There is not a Starbucks or McDonald's on any of the corners. Nor does one find national fashion and bridge retailers that have now become familiar to SoHo.

Will the LES always remain Manhattan's little local gem? Or is the addition of Whole Foods on Houston Street an indication that the LES is soon to see nationals coming into the neighborhood?

From a retail consultant's point of view, there is no question that the Lower East Side has great potential for the right kind of growth--development that preserves the integrity and organic charm of the neighborhood.

While it is clear luxury goods would be a logical addition (which has worked with varying degrees of success in both SoHo and NoLita), the success of retail in the LES will ultimately be dependant on the type of goods being sold. Spending habits and lifestyle choices ultimately govern the success of retailers, and the LES is true to its historical tradition in that regard. But given the success of the shoe boutiques, vintage shops and high-end restaurants, it would seem the neighborhood is ready for upscale denim, luxury eyewear or specialty food and wine shops.

It is remarkable to note the evolution of Manhattan neighborhoods, particularly in the past twelve years. Many new lifestyle areas have emerged, and with them the attendant retail, residential, and entertainment components. Whether national retailers will gravitate to the Lower East Side, as they have done in SoHo, remains to be seen. But for now, the spontaneous mix of old and new New York that can be found in the LES makes for a true Manhattan neighborhood experience.

Stephen Stephanou is Executive Vice President and Chris DeCrosta is a Director at Madison HGCD.