"I think your industry has people with long memories going back to what happened in the middle of the 1980s," Tannenbaum said. "Here in Chicago, the real estate market is well-balanced."

Tannenbaum ticked off four reasons not to expect the worse in 2001: historically low unemployment, low and falling mortgage rates, the market's past resilience and Fed chief Alan Greenspan. The economist with a sense of humor urged members of the 8,000-member association to have positive conversations about the economy and real estate market with clients and customers to help stop a recession from becoming a self-fulfilling prophecy. "The mood of the market, the mood of the economy and the mood of your customers are very important in how we do," said Tannenbaum, who rather than a recession, sees a soft landing ahead for the economy.

However, it's too late to undo damage caused by a weak holiday shopping season, and a decline in consumer confidence does not bode well for the retail srector's immediate future. "Obviously, the weather had something to do with (holiday sales) but sales were off for several months. I'd be very, very careful with retail because it's under a lot of pressure," Tannenbaum said. "Montgomery Wards is not going to be the last chain we see deal with heavy consequences." Other retail experts have mentioned JC Penney, whose presence in the market includes co-anchoring regional shopping malls, as a retailer to watch following Sears Roebuck & Co.'s decision to shutter NTB and hardware stores nationwide.