Diapers.com for example, he said, is having a direct impact on places like BabiesRUs. “When Amazon.com does not have to collect 8% to 9% sales tax for example, and our tenants have to, it is a very direct impact. It is something we can’t ignore,” Henry said.

The second challenge Henry pointed to involves mom-and-pop stores. “They continue to have significant difficulty getting credit and many of their credit lines have been cut,” he said. “Many have gone out of business and have trouble keeping their lights on. The local stores continue to have a hard time supporting their businesses.”

The third challenge Henry described is that as national retailers grow and expand, which is good, just about all of them want smaller prototype stores. “This impacts us directly when renewals come up,” he said. “Some of those retailers have creative ideas on how we should take the back of the stores back. At the end of the day, they want a smaller box and that has a negative impact on us.”

Working through those three challenges, Henry said, is in addition to fighting through the challenges in the economy. But on the positive side, he said, “the US continues to grow by three million people a year, who all need supplies.” That, he said, in combination with virtually no large scale development, is good for the industry. “The development that you are seeing is mainly redevelopment, but not large scale development or new supply,” the ICSC chairman said.

In general, Henry said the vital signs get better. “The key metrics are beginning to strengthen,” he said. “Subject to some macro events that we can’t control, our industry is healthier and things are getting better quarter by quarter. We are optimistic about going forward.”

A few other trends that Henry mentioned included the growing Hispanic community and the impact of Internet social networking sites to drive traffic to properties. “We have gone through the storm and are on the other side of it,” he said. “The sun isn’t shining bright, but it is there.”

Following Henry's remarks, in a general session titled “Rockin’ Retailer Review,” approximately 20 experienced retailers discussed their greatest hits, what they are looking for, where they want to expand, and the kind of deals they expect to make. Moderator Denis Bar, ICSC Western Division retail chair and director of real estate for Fry’s Food Stores based in Phoenix, served as moderator.

Scott Gladstone, chief operating officer for Anna’s Linens, explained that the company has been able to expand in this environment. “We are using the economy to enter new markets,” he said. “We have an appetite for new stores and new opportunities.” In terms of criteria, Anna’s Linens seeks space that is between 8,000 to 12,000 square feet. In terms of demographic requirements, the company seeks a population of at least 150,000 with an income of around $40,000.

Autozone too is aggressively expanding. “The economy has been good for us because a lot of people are working on their own car,” said Sean Powell, real estate development manager. “We believe that expansion opportunities exist both in markets that we do not currently serve, as well as in markets where we can achieve a larger presence. We attempt to obtain high visibility sites in high traffic locations and undertake substantial research prior to entering new markets.” The most important criteria for opening a new store, according to Powell, is its projected future profitability and “its ability to achieve our required investment hurdle rate.”

Chase Bank is focusing on California and Florida for expansion, said Syreeta Hill, VP market director for real estate. She explained that Chase is “seeking dominant corner locations with high traffic, and grocery anchored intersections” and plans to open more than 100 branches in 2011.

Other retailers on the panel, which all were equally impressive in their expansion plans included: Big Lots!; Chipotle; Costco; Fanzz; Goodwill; Great Clips; Grocery Outlet “Bargain Market”; Jo-Ann Fabrics and Crafts; L.A. Fitness; Melrose; Panda Express; Panera Bread; Qdoba Mexican Grill; Ralphs/Food 4 Less; Shoe Carnival; Sports Clips; and Which Which?