IRVINE, CA—The cautious optimism that has marked the generalcommercial real estate industry's approach torecession recovery has permeated theretail sector as well, and some might say we'regetting ready to start celebrating its success. GlobeSt.com spokewith Larry Sullivan, president of PasscoCos., about his characterization of the market and wherehe sees it headed.

GlobeSt.com: What is your opinion on the state ofthe retail real estate market now as compared to a yearago?

Sullivan: Certainly it's better nowthan it was a year ago, which was better than the year before.Retail more or less allows a progression for a very closecorrelation to the consumer and how the consumer feels aboutthings. Over that same time horizon, consumers have become morebuoyant, the economy is better and we're not falling back intorecession. Also, there's been a lot of pent-up demand out therebecause people have been holding back for so long. Those two thingsin concert have allowed the retail sector to move forward. It's notNew Year's Eve, where we're ready to pop the champagne cork, butthe hors d'oeuvres are being passed around.