This looks severely scorched. The lace leaf types are more sensitive to high heat and drought, so it looks like the planting location coupled with environmental conditions are taking its toll on it. 

It is getting reflective heat from the brick siding, the gravel and the sidewalk. Is it in full sun? It would probably prefer mid to late day shade if so but it would be difficult to move now and have it survive in this stressed state. Is there landscape fabric under the gravel? That can choke out tree roots and deprive them from rain water. Is there a roof overhang that is preventing rain water as well?

Have you supplemented irrigation in times of drought? Last summer and this summer have had some very dry weather and we had high temperatures as well this summer. You can try to water through the fall and see how it goes next spring. You may need to prune out any dead branches. 

You can refer to our Watering Trees and Shrubs page for more details but mature trees still need about 1 inch of water a week. You can use a hose on a slow trickle at the base for about 20 min. to help thoroughly soak the root ball. Before watering again, check the soil about 6 inches down to see if it is still moist. 

If it looks very sparse next spring when it leafs out, you may want to remove it and plant something else. If there is landscape fabric and you can easily remove it, we would suggest that before plant more trees or shrubs in that location. 

Emily

The landscape fabric, if its the typical synthetic material, can act as an impenetrable barrier. It does let some water through but really need to become saturated first to do so. So with the lack of rain we have had for the passed 2 growing seasons that could be the cause of the tree stress. Check the bottom and around the trunk and make sure it isn't cutting into the bark. (the link shows a video of this).

If the other lace leaf is getting a bit more water, maybe form a downspout, that could be why it appears better. Also the darker leaves do absorb more heat.