Fairway Market is negotiating to add a Manhattan location on the Upper East Side, two real estate sources told Crain’s. The lease, which would be Fairway’s third in the borough and sixth in the New York area, would be for 60,000 square feet at 240 East 86th Street between Second and Third avenues. The former Circuit City and Barnes & Noble spot was reportedly hotly pursued by retailers like Whole Foods and Nordstrom Rack. The East 86th Street corridor has seen retail rents drop by up to 24 percent since 2008, according to the latest recent report by the Retail Board of New York, with space there going for roughly $360 per square foot at present. Ariel Shuster of Robert K. Futterman & Associates is representing the landlord, Lend Lease Real Estate Investments, but did not comment.