The survey found that retailer bankruptcy ranked as the second-biggest challenge facing shopping centers, up five places from a year ago and surpassed only by concerns about real estate taxes -- a perennial top concern despite historic tax reform by the Minnesota Legislature last session. In fact, despite facing higher taxes this year, many expect a decrease of 10% or more next year as the reform takes effect, according to the survey.

Among retailers whose financial troubles have affected Minnesota malls include Montgomery Ward at Northtown Mall in Blaine, Northern Reflections in Rosedale andMaplewood Mall and HomePlace at Southtown. Among those filing for bankruptcy were Lechters, and Video Update, the largest video rental chain in the Twin Cities.

"There is an overall concern in the marketplace as retail sales soften that there is a risk of additional bankruptcies,'' says Larry Martin, co-chair of the research committee of the association.