"While weakness among retailers will likely persist well into 2010, some emerging signs indicate the start of a recovery," according to the 2010 Single-Tenant Outlook retail research report from Marcus & Millichap Real Estate Investment Services. It notes that while year-over-year retail sales (excluding autos) through the third quarter were down almost 5%, there was a positive sign in a 50 basis point increase from August to September.

And Fitch Ratings has said is expects increased stability in ratings for retailers in the US next year. "In 2010, overall retail sales are anticipated to be flat to up modestly from 2009 levels," says Fitch, and it expects that "the growth in personal consumption expenditures to be 0.3% reflecting expectations for a slow recovery."

From both investment property and retail sales perspectives, retailers offering consumers value and/or necessity goods are faring the best and that could continue in the new year. "Consumers remain focused on value even as the economy improves, buying on promotion or at discount or moderately priced locations," Fitch says. "Some segments of the market continue to outperform," notes Marcus & Millichap, "including necessity-based retailers such as grocery stores and drugstores, as well as dollar stores, all of which have posted strong results as consumers trim costs amid the softening economy."