Unless you have a class "A" space in a great location, it isn'tlikely that your retail vacancy is going to fill up really fast,even in the improving economy. Leading up to next week's ICSC NewYork National Conference we spoke with NeillKelly, president of DJM Realty, aGordon Brothers Group company that specializes inexcess space dispositions. He says that there are only a fewsectors of retail expanding aggressively in this environment. Andyes, dollar stores are one of them. DJM will be at theHilton Hotel's Americas Hall 1 Booth #362 at theconference on Monday and Tuesday.

Following is an excerpt of the conversation we had withKelly:

"It’s the discounters [expanding], and typically thediscounters of under 20,000 square feet. To a somewhat lesserdegree, you find a fairly strong demand from restaurants. Butrestaurants are often faced with a lot of impediments to acquiringspace that had not previously been what we call a “wet use.” Thereare health code and parking restrictions. On larger spaces there isplenty of play from the health-club crowd. In a more robust market,they have a tougher time obtaining real estate because of theparticular challenges the present at a shopping center with parkingand lease prohibitions against their use. Today, they’re finding abit of an easier road because you have more pliable landlords thatmight take a tighter parking situation in favor of a renewedincrease in foot traffic. L.A. Fitness has beenvery active and Lifestyle Fitness has been veryactive when the box size allows. Most people with a dark box of40,000 square feet or more have health clubs at the top of theirlist. Also certain parts of the country, we are seeing a lot ofactivity among small or regional grocery chains. Beyond that, it’sreally a mixed bag."