"The market is a bit softer and there are fewer tenants lookingfor space," admits Matt Harding, president and COO of LevinManagement in North Plainfield. "I would say that the mood iscautious. People are holding back a little bit, waiting to see whatthe rest of the year will bring."

According to Harding, retail leasing nationwide has been hit bymajor companies' decisions to halt or drastically scale backexpansion plans. Ed Walters, founder and partner with theBarnegat-based Walters Group, notes that middle-tier stores areespecially feeling the economic pinch and pulling back on expansionplans.

The news is not all doom and gloom, fortunately. Some stores aredoing well and still seeking space despite, or, in some cases,because of, the bad economy. High-end shops and boutiques as wellas bargain stores such as Target and CostCo are riding the stormwith relative ease, even thriving.